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It’s easy to feel confident about your retirement savings — right up until you find out someone your age has put away a lot more.
Comparison can be particularly dangerous when it comes to money. Warren Buffett once made that point to Berkshire Hathaway shareholders: “As an investor, you get something out of all the deadly sins — except for envy,” he said in 2010 (1). “Being envious of someone else is pretty stupid.”
But as retirement gets closer, learning that a friend has accumulated nearly three times as much as you can render such advice meaningless.
Consider a 59-year-old nurse and her husband, who have spent decades preparing for retirement. They have about $250,000 in retirement accounts, another $200,000 to $300,000 in home equity and expect to receive a $1,100 monthly pension.
They’re also anticipating somewhere between $1,800 and $2,300 a month in combined Social Security benefits, depending on when they claim.
For years, that seemed like a reasonably solid foundation. Then the nurse learned that a friend earning a similar salary had accumulated $700,000 in a 401(k).
Suddenly, that $250,000 doesn’t seem like nearly enough.
But comparing two retirement account balances doesn’t tell you whether one household is prepared and another is falling behind. Income, expenses, pensions, Social Security, housing and the age at which you retire can all dramatically change the calculation.
So, how does $250,000 at age 59 compare with what other Americans have saved — and what could this couple do during their remaining working years to strengthen their position?
Where your $250,000 balance places you
At first glance, this couple might appear to be well behind their peers.
According to the most recent data from the Federal Reserve (2), Americans between 55 and 64 have an average of $537,560 saved for retirement — more than twice this couple’s $250,000.
But averages can be misleading when it comes to wealth because households with very large balances pull the figure higher. The median retirement savings for the same age group is just $185,000 (3).
By that measure, the couple’s $250,000 actually puts them above 50% of Americans their age.
They’re also in a considerably stronger position than many Americans who have already retired: A 2026 Clever Real Estate survey found that 29% of retirees reported having no retirement savings at all (4).
Of course, none of that means $250,000 will necessarily be enough for them.
In fact, the average American doesn’t believe it’s nearly enough. Northwestern Mutual’s 2026 Planning and Progress Study found that Americans now think they’ll need an average of $1.46 million to retire comfortably (5).
But even that figure can’t tell an individual household exactly how much it needs. The couple still has to look at the bigger picture.
Look beyond the retirement account balance
This couple’s $250,000 nest egg is only one part of their retirement picture.
Their $1,100 monthly pension, for instance, would provide $13,200 a year. Over 10 years, that adds up to $132,000 in income, and the pension could continue paying for much longer.
Then there’s Social Security as well. They estimate their combined benefits at $1,800 to $2,300 per month, depending in part on when they begin claiming. Delaying Social Security can increase monthly retirement benefits up to age 70.
They also have between $200,000 and $300,000 in home equity. That doesn’t necessarily translate into spendable retirement income — they’ll still need somewhere to live — but it adds another significant asset to their balance sheet.
The more useful question, then, isn’t whether they have as much in a 401(k) as the nurse’s friend. It’s whether their savings and expected income can support the amount they expect to spend to sustain the lifestyle they want.
Housing, healthcare, debt, taxes, travel and other lifestyle expenses could all affect that answer.
Figure out what your retirement actually requires
Rules of thumb can provide a starting point. One common approach is to calculate that you’ll need 80% to 90% of your current expenses in retirement and build a portfolio capable of supporting those costs.
But a couple approaching retirement has a lot of moving pieces to coordinate.
Someone with a pension, Social Security, substantial home equity and $250,000 invested may have very different needs from someone with the same investment balance but no pension and a large mortgage (or no property at all).
That’s why it may help to run several scenarios based on different retirement dates, Social Security claiming ages and spending levels. This way, you can find out if there really is a shortfall — and how large it might be — before making major decisions based on someone else’s account balance.
But calculating withdrawals, minimizing tax exposure and ensuring long-term sustainability often requires greater coordination and strategic planning.
In these cases, working with a financial advisor can help reduce costly mistakes.
For instance, if you have a portfolio of $250,000 or more, platforms like WiserAdvisor can connect you with vetted professionals who specialize in this kind of planning.
Simply answer a few questions about your savings, retirement timeline and overall investment portfolio. From there, WiserAdvisor reviews its network to match you — for free — with up to three vetted, reputable advisors aligned with your specific needs.
You can then schedule no-obligation consultations with your matches to determine who is the best fit for your long-term goals.
WiserAdvisor is a matching service and does not provide financial advice directly. All matched advisors are third parties, and specific financial results are not guaranteed.
Use your remaining working years to invest more
If running the numbers does reveal a gap, being 59 gives this couple something valuable: Time to keep contributing before they retire.
In particular, workers 50 and older can take advantage of catch-up contributions. In 2026, someone in that age group can contribute as much as $32,500 to a 401(k), including the standard catch-up contribution (6), and $8,600 to an IRA (7).
Beginning at age 60, an even higher 401(k) catch-up limit applies through age 63. Eligible workers in that age range can contribute as much as $35,750 in 2026.
Maxing out those limits won’t be realistic for everyone. But increasing contributions by even just a smaller amount can give someone approaching retirement several more years to add to their investments and potentially benefit from market growth.
Consistency matters here, too. Finding ways to automatically invest money before it gets absorbed into everyday spending can make increasing contributions easier to maintain.
One way to build investing into your existing routine is through apps like Acorns, which automatically invest spare change from your everyday purchases into a diversified portfolio of ETFs managed by experts at leading investment firms like Vanguard and BlackRock.
For instance, when you spend $3.25 on your morning coffee, Acorns will round up that purchase to $4 and invest the difference — your spare change — in a smart investment portfolio on your behalf. That means an ordinary purchase can automatically become a 75-cent investment in your future.
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Find more room in your monthly budget
Saving more for retirement doesn’t necessarily require a dramatic lifestyle overhaul.
For someone approaching retirement, this can be a useful time to take a closer look at expenses that have accumulated over the years. Subscriptions, memberships, insurance, entertainment and other recurring charges can gradually claim a larger share of a household budget than expected.
Larger changes could make an even bigger difference. Downsizing a home, reducing the number of vehicles in the household or selling an RV or other rarely used asset could lower ongoing expenses while potentially freeing up additional cash.
But smaller recurring expenses are worth examining, too. Redirecting money that’s currently disappearing into unnecessary monthly bills could create additional room for retirement contributions without requiring additional income.
A quick daily check-in of your accounts can show you exactly where your money is going.
An app like Rocket Money can easily flag recurring subscriptions, upcoming bills and unusual charges by pulling in transactions from all your linked accounts.
This can help you cut unnecessary costs, and then you can manually redirect savings straight into your retirement fund. No spreadsheets, no guesswork, no stress. Small habits like this can make a big difference over time.
Rocket Money’s intuitive app offers a variety of free and premium tools. Free features include subscription tracking, bill reminders and budgeting basics, while premium features — like automated savings, net worth tracking, customizable dashboards and more — make it easier to stay on top of your retirement contributions and overall financial goals.
Start planning the transition before you retire
Closing a retirement savings gap isn’t only about accumulating a bigger investment balance. Decisions made in the years immediately before retirement can affect how far those savings eventually have to stretch.
This couple, as an example, will need to decide when to leave full-time work, when to claim Social Security and how they’ll handle health coverage before and after Medicare eligibility.
Working longer is one possibility, but it doesn’t necessarily have to mean staying in the same full-time job for another eight years.
A phased retirement could allow someone to move to part-time work or a less demanding position while continuing to earn income. Remaining in the workforce could also allow them to delay drawing down investments or claiming Social Security.
And plenty of older Americans continue working. About 19% of Americans 65 and older participate in the labor force, according to the latest data from the Bureau of Labor Statistics data (8).
Understanding Social Security, Medicare and the other decisions that come with retirement can make it easier to map out that transition before the final paycheck arrives.
As you get closer to retirement, every dollar matters more. Rising healthcare costs, uncertain markets and fixed incomes can make it harder to stretch your savings — especially if you’re trying to plan for decades ahead.
You might want to consider joining senior-focused organizations like AARP for discounts on almost everything — from prescriptions and dental plans to travel, entertainment and insurance.
As one of the most trusted organizations for older Americans, AARP not only offers money-saving perks, but the organization can also help you make informed financial and health decisions.
AARP members get access to guides that can help you make the most of Social Security, choose the right Medicare plan and uncover other government benefits — potentially saving you thousands.
Sign up with AARP today and get 25% off your first year.
Build a cash cushion for the expenses investments shouldn’t cover
There’s another piece of retirement preparation that can get overlooked when the focus is entirely on reaching a particular investment balance: cash.
Unexpected expenses don’t disappear once you retire. A major home repair, medical bill or other short-term expense could force you to pull money from investments at an inconvenient time if you don’t have liquid savings available.
That can become particularly important as retirement gets closer. Money intended for expenses in the near future serves a different purpose from money invested for the next 10, 20 or 30 years.
Building a dedicated cash reserve during the final working years can give retirees an additional source of money for near-term needs while leaving longer-term investments alone.
A high-yield account like a Wealthfront Cash Account can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it.
A Wealthfront Cash Account currently offers a base rate APY of 3.55% through program banks. With a new client boost and direct deposit incentive, referred clients can earn up to a 4.55% APY.
That’s 10 times the national deposit savings rate, according to the FDIC’s August report.
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, you get access to up to $8 million FDIC Insurance eligibility through program banks.
Bottom line
Ultimately, the nurse’s friend having $700,000 doesn’t have to mean this couple failed by accumulating $250,000. Their retirement will depend on their own combination of savings, pension income, Social Security, home equity and spending — not someone else’s 401(k) balance.
And at 59, they still have time to make adjustments. Increasing investments, trimming recurring expenses, planning their retirement transition and building accessible savings could all strengthen the financial foundation they’ve already built.
The goal isn’t to catch up with a friend. It’s to make sure the money they have can support the retirement they want.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Forbes (1); Board of Governors of the Federal Reserve System (2), (3); Clever Real Estate (4); Northwestern Mutual (5); IRS (6), (7); Bureau of Labor Statistics (8)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
