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In 2022, the most recent year for which data is available, the median retirement savings for Americans ages 55 to 64 was $185,000, according to the Federal Reserve (1). Let’s say you’re 63 years old and have $390,000 saved. This means he is just over twice the median for his age group.
Still, $390,000 may not go as far in retirement. A recent survey by Northwestern Mutual found that Americans estimate they need $1.26 million, on average, to retire comfortably, up from $1.46 million the previous year (2).
However, the reality is that each person’s retirement needs vary widely. Depending on your lifestyle, spending habits, and other sources of income, you may be able to retire with $390,000, especially if you are frugal and have minimal expenses.
Here’s an estimate of the monthly income you could expect if you retired at age 63 with that amount.
If you retire at age 63, it’s wise to plan for your savings to last about 30 years. Many financial experts suggest using the 4% rule to help your savings last that long. This rule involves withdrawing 4% of your savings in the first year of retirement and then adjusting for inflation annually.
With $390,000 saved, the 4% rule gives you $15,600 per year, or $1,300 per month, without accounting for inflation. That amount alone will likely not be enough to cover all of your living expenses.
Additionally, you need access to a fully funded emergency savings account, especially at your age. Medical expenses will be more likely as you age, and retirees can’t rely on the next paycheck to help pay the bills. That’s why an emergency fund is crucial, and why you should choose to maximize the return on your cash reserve with a high-yield savings account.
Wealthfront’s Cash Account is designed for those looking for a reliable and secure plan, offering a 4% APY, which is more than 10 times the national average.
Wealthfront offers an account that allows quick (and free) transfers to Wealthfront’s internal investment accounts, as well as external accounts. That gives you the flexibility you need with your available funds.
Plus, when you fund your new account today with $500 or more, you can get a $30 bonus with Wealthfront Cash.
If you’ve worked since age 20, you’re probably eligible for Social Security. The average monthly benefit for retired workers is currently approximately $2,005 (3). Combined with the savings withdrawals above, that provides approximately $3,300 per month.
That said, if you’re 63, you’re claiming Social Security early. Your full retirement age is likely to be 67, and claiming early means reduced benefits for life.
If you’re retiring with limited savings, it’s worth considering part-time work for a few more years. This can help you delay Social Security, preserve your benefits, and reduce pressure on your savings.
While it is possible to live on this small monthly amount if you are in one of the less expensive areas of the US, you may want to take a closer look at your budget and see what is really possible. Working with a financial advisor can help you make a plan for your 60s—whether that’s retiring or committing to working a few more years.
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It’s natural to feel burned out at 63, especially if you’ve been working steadily since you were 20. But with $390,000 in savings, it may be wise to delay tapping into your savings.
Even if you no longer contribute, letting your savings grow intact for a few more years can give you more flexibility in the future.
One option to consider is a job change. A 2025 AARP survey found that 24% of Americans age 50 and older plan to change jobs this year (4). Transitioning from a highly stressful job or unsatisfying role to something less demanding or more enjoyable could make a few more years of work seem more manageable.
You might also consider switching to a part-time job. According to a 2024 Willis Towers Watson survey, 34% of workers over age 50 have started reducing their hours or want to gradually retire (5).
A part-time work schedule could help cover expenses, possibly allow for continued savings, and, most importantly, keep you insured until you’re eligible for Medicare at age 65.
If you go the part-time route, you’ll want to make sure your new paycheck goes as far as possible. Monarch Money can help you set a new budget plan and track your progress toward your savings goals to complete your savings.
Monarch Money allows you to easily track expenses and understand how you spend your money month to month.
This financial management platform offers an all-in-one tool to help you track investments, expenses, and budgets, and even offers personalized advice so you can feel confident with your money. You can also feel safe sharing your financial data with Monarch Money – the app is secured by Plaid for secure data integration and employs multi-factor authentication upon login, so you can keep your accounts safe.
Download the app now for a free seven-day trial. After that, you can get 50% off your first year with code WISE50.
If traditional employment does not appeal to you, informal work is another option. It offers flexibility, the ability to take time off whenever you want, and the ability to earn supplemental income. This can help reduce your dependence on benefits, especially if you are trying to delay claiming Social Security to avoid a permanent reduction in benefits.
Getting some work done can help stave off boredom and give structure to your days. Whether it’s part-time or gig work, staying active can be both financially and mentally rewarding.
We rely only on verified sources and credible third-party reports. For more details, see ourEthics and editorial guidelines..
The Federal Reserve (1); Northwest Mutual (2); Social Security Administration (3); AARP (4); Willis Watson Towers (5)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
