55+ Years Old: What to Do If You’re Approaching Retirement With $150,000

Core Insights - The article emphasizes the importance of retirement savings and provides strategies for individuals aged 55 and older who may feel anxious about their retirement savings, particularly if they have $150,000 saved, which is below average for their age group [2][3]. Group 1: Retirement Savings Overview - As of Q3 2025, the average IRA balance is reported at $137,902 and the average 401(k) balance at $144,400, indicating that having $150,000 saved is slightly above average for younger individuals but concerning for those 55 and older [2]. - Individuals aged 55 or older with $150,000 saved may feel panic as they approach retirement, with only a decade or less left in the workforce [3]. Group 2: Strategies for Catching Up - Working longer can significantly aid in catching up on retirement savings, with the potential to extend working years to ages 67 or 68 instead of the traditional 62 or 63 [4]. - Delaying retirement can also allow individuals to postpone their Social Security claims, resulting in larger monthly benefits that can help compensate for lower savings [5]. Group 3: Maximizing Remaining Working Years - Individuals aged 55 and older are eligible for catch-up contributions in IRA or 401(k) plans, which can enhance their savings during the remaining working years [6]. - While maxing out a 401(k) may not be feasible immediately, increasing the savings rate is crucial, which may involve cutting expenses to free up funds for retirement accounts [7]. - Consulting a financial advisor can provide tailored strategies to improve retirement savings and reduce stress related to financial planning [8].