Many folks who reach their mid-70s are well into retirement. At that point, you
are no longer focused on accumulating money — you just want to make sure your
cash lasts.
If you are 74 years old, how much do you have left in retirement savings? Find
out what your peers have remaining in their nest eggs and see if you are doing better
financially.
The average and median 401(k) balance for a typical 74-year-old
The average retirement account balance for participants 65 and older is $330,186, according to Vanguard’s How America Saves 2026 report. This is the closest available benchmark for the average 401(k) balance by age for people in their mid-70s, since most major retirement data providers group participants 65 and older together.
However, it’s important to note that very wealthy people skew the average much
higher. So, it is not necessarily the best way to visualize how much a typical
retiree has in savings.
Instead, it makes more sense to look at the median. This is the figure that
represents the middle number in a data set, with half of the other values below
the median and half above it.
The median retirement account balance for participants 65 and older is $103,202, according to Vanguard.
How much you should have saved by age 74
It is difficult to say how much a 74-year-old should have saved for retirement.
The precise amount differs by individual and depends on factors such as the lifestyle you want and the cost of living in your area.
However, Fidelity Investments has long suggested benchmarks for how much people
should save by the time they reach various age milestones. Fidelity’s estimates
end at age 67.
At that point, a typical person should have saved at least 10 times their annual
salary when they were working.
The median household income for households ages 75 and older is $47,790, according to Empower, citing the U.S. Census Bureau’s 2025 Current Population Survey. Using Fidelity’s 10-times-income guideline as a rough benchmark would put the target at about $478,000.
Reasons people may be behind in savings by age 74
The Vanguard average and median totals may both seem a little low for people in
this age group. After all, many of them have spent decades accumulating wealth
for their golden years.
But it’s important to remember that many 74-year-olds have been retired for some
time. That means they likely have been dipping into their retirement accounts
for years, with the balance slowly dropping over time.
How long will your money last at 74?
Young people often ask themselves how much they should save for retirement. But
by the time you are 74, the question shifts to, “How long will my money last?”
Looking at the Vanguard numbers, the average retiree can expect to have $299,442
in retirement savings. Many financial professionals view a 4% annual withdrawal
rate as a safe way to slowly deplete savings without actually running out of
money. That means someone with Vanguard’s average in savings could safely
withdraw $11,977 each year.
The picture is significantly more challenging if you have only saved the median
of $95,425. In that case, you can only safely withdraw a paltry $3,817 each
year.
Social Security to the rescue?
When you crunch the savings numbers, the picture looks bleak for many of today’s
retirees. In fact, a 2024 AARP study found that among those who are 50 or older,
around 20% have no retirement savings at all.
Looking at the latest Vanguard numbers, the average participant age 65 or older has $330,186 in retirement savings. Using the commonly cited 4% withdrawal guideline, that would amount to about $13,207 per year.
The picture is significantly different if you have saved the median of $103,202. A 4% withdrawal would provide about $4,128 per year.
Here is the average monthly Social Security payment for individuals who file for
benefits at three ages: 62, full retirement age (67 for most people), and 70:
62: $1,424.40
Full retirement age (67): $2,016.48
70: $2,274.68
As you can see, combining this amount with a 4% withdrawal rate from retirement
savings will not get you very far.
The outlook for the average 74-year-old
Of course, retirement account balances may be lower for retirees who have been withdrawing money for years. But the Vanguard figures also show why looking at both the average and median is useful.
The average account balance of $330,186 is substantially higher than the median of $103,202, reflecting how larger account balances can skew the average.
Your own financial picture may also include Social Security, a pension, home equity, taxable investments, an IRA, or other assets that aren’t captured by Vanguard’s workplace retirement-plan figures.
If you are concerned about running short of money, consider reviewing your spending, Social Security strategy, investment allocation, and other potential sources of retirement income with a qualified financial professional.
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The lesson for everyone else
Many of today’s 74-year-olds face a challenging financial future. But millions
of others who prioritized savings during their working years are in much better
shape.
If you are younger, now is the time to save for your golden years. Even modest
sums can grow to vast fortunes if they have decades of compound growth ahead of
them.
The sooner you start saving, the brighter your golden years are likely to gleam.
Bottom line
Millions of Americans who are 74 years old will have to tighten their belts if
they hope to get by on modest retirement savings. But many others who
prioritized savings during their working years should be able to live out their
retirement in financial comfort.
If you are still working, now is the time to start investing and
saving to secure your financial future.
FAQs
What are required minimum distributions, and do they apply at age 74?
Required minimum distributions, or RMDs, are annual withdrawals the IRS requires from traditional 401(k)s and IRAs starting at age 73. At age 74, you are already in your second year of mandatory distributions. The IRS calculates the required amount by dividing your prior year-end account balance by a life expectancy factor from its Uniform Lifetime Table. Missing an RMD results in a penalty of 25% of the amount not withdrawn, according to IRS rules.
How long will $300,000 last in retirement at age 74?
Using the 4% rule, a common guideline among financial professionals, $300,000 would support annual withdrawals of $12,000. Combined with average Social Security benefits, that could be enough to cover basic living expenses for many retirees, but leaves little room for large or unexpected costs. How long the money lasts depends on your actual spending, investment returns, inflation, and health care costs.
Can a 74-year-old still add to their retirement savings?
Yes, in some cases. If you are still working, you can continue contributing to a 401(k) — and if you are employed and do not own more than 5% of the business, you may also be able to delay RMDs from that workplace plan until you retire, according to the IRS. You can also contribute to a traditional or Roth IRA as long as you have earned income, with no age limit on contributions since the SECURE Act removed the prior age cap.