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In 2022, the most recent year for which data is available, median retirement savings for Americans ages 55 to 64 was $185,000, according to the Federal Reserve (1). Let’s say you’re 63 with $390,000 in savings. This means you are slightly more than twice the median for your age group.
However, $390,000 may not stretch that far in retirement. A recent survey by Northwestern Mutual found that Americans estimate they need an average of $1.26 million to retire comfortably—down from $1.46 million the previous year (2).
The reality, however, is that everyone’s retirement needs vary widely. Depending on your lifestyle, spending habits and other sources of income, it’s possible to retire with $390,000, especially if you’re frugal and have minimal expenses.
Here’s an estimate of the monthly income you could expect if you retire at age 63 with this 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 nest egg stretch that far. This rule involves withdrawing 4% of your savings in the first year of retirement, then adjusting annually for inflation.
With $390,000 saved, the 4% rule gives you $15,600 a year or $1,300 a month – not taking inflation into account. It’s probably not enough to cover all of your living expenses on your own.
Plus, you need access to a fully funded emergency savings account, especially at your age. Medical expenses will become more likely as you age, and retirees can’t rely on their next paycheck to help pay the bills. This is why an emergency fund is essential — and why you should choose to maximize the return on your cash stash 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 internal Wealthfront investment accounts as well as external accounts. This 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 you were 20, you’re probably eligible for Social Security. The average monthly benefit for retired workers is currently about $2,005 (3). Combined with the savings withdrawals above, this provides about $3,300 per month.
That said, if you’re 63, claim Social Security early. Your full retirement age is likely 67, and claiming early means reduced lifetime benefits.
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, keep your benefits, and take the pressure off your nest egg.
While it might be possible to live on this small monthly amount if you’re in one of the less expensive areas of the US, you might want to take a hard look at your budget and see what’s really possible. Working with a financial advisor can help you plan for your 60s: whether it’s retirement or hiring for a few more years of work.
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It’s natural to feel burned out by the time you’re 63, especially if you’ve been working steadily since your 20s. But with $390,000 in savings, it might be wise to hold off on the eggs.
Even if you stop contributing, letting your savings grow untouched for a few more years can give you more flexibility later on.
One option to consider is changing jobs. A 2025 AARP survey found that 24% of Americans age 50 and older plan to change jobs this year (4). Switching from a stressful job or unfulfilling role to something less demanding or more enjoyable could make a few years of work feel more manageable.
You could also consider switching to part-time work. According to a 2024 Willis Towers Watson survey, 34% of workers over the age of 50 have either started reducing their hours or want to phase into retirement (5).
A part-time work schedule could help cover expenses, possibly allow for continued savings and, critically, keep you covered 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 towards your savings goals to top it off.
Monarch Money allows you to easily track your expenses and understand how you spend your money from month to month.
This financial management platform offers an all-in-one tool to help you track your investments, spending and budget, and even offers personalized advice so you can feel confident about your money. You can also feel confident sharing your financial data with Monarch Money – the app is protected by Plaid for secure data integration and uses multi-factor authentication at login so you can keep your accounts safe.
Download the app now for a seven-day free trial. After that, you can get 50% off your first year with the code WISE50.
If traditional employment doesn’t appeal to you, part-time work is another option. It offers flexibility, the ability to take time off when you choose and the chance to earn extra income. This can help reduce your reliance on benefits, especially if you’re trying to delay claiming Social Security to avoid a permanent reduction in benefits.
Working in some capacity can help stave off boredom and structure your days. Whether part-time or full-time, staying active can be both financially and mentally rewarding.
We only rely on verified sources and credible third-party reports. For details, seeeditorial ethics and guidelines.
Federal Reserve (1); Northwestern Mutual (2); Social Security Administration (3); AARP (4); Willis Towers Watson (5)
This article provides information only and should not be construed as advice. Offered without warranty of any kind.
