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Median 55-year-olds face about a $1.4 million retirement shortfall
Workers aged 60 to 63 can contribute up to $35,750 annually to a 401(k) under the SECURE 2.0 super catch-up, which would close about 15% of the gap over a decade, according to the analysis.
A Yahoo Finance analysis highlights a widening retirement gap for Americans nearing retirement, estimating that a median 55-year-old has about $95,000 saved against a retirement target ranging from roughly $1.26 million to $1.6 million, leaving nearly $1.4 million to make up over the remaining working years. The piece notes that retirement planning studies differ on the so-called “magic number,” pointing to Northwestern Mutual’s 2026 estimate of $1.26 million and Schwab’s 2026 figure of $1.6 million. It also cites Vanguard’s How America Saves 2026 report, which puts the median 401(k) balance at $44,115 across all participants and $103,202 for those age 65 and older. Fidelity participant data is used to illustrate account levels for the cohort, with average 401(k) balances peaking at $214,991 for ages 45 to 54 and $305,006 for ages 55 to 64, while the analysis emphasizes that averages can be skewed by a small share of very large balances. The article also discusses potential ways some workers may reduce the shortfall, including using the SECURE 2.0 super catch-up that allows ages 60 to 63 to contribute up to $35,750 annually to a 401(k), which it says could close about 15% of the gap over ten years. It further notes that delaying Social Security claiming from 62 to 70 can increase monthly benefits from about $2,400 to nearly $2,976, creating a six-figure difference over a 20-year retirement horizon, as summarized in the analysis.