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According to the Federal Reserve, Americans ages 55 to 64 will have median retirement savings of $185,000 in 2022 (the latest year for which data are available)(1). Let’s say you are 63 years old and have $390,000 saved. This means your income is slightly more than twice the median for your age group.
Still, $390,000 may not last that long 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 year before(2).
But the reality is that everyone’s retirement needs vary greatly. Depending on your lifestyle, spending habits and other sources of income, you could retire with an income of $390,000, especially if you are frugal and have few expenses.
Here’s what you can expect to earn each month at that amount if you retire at age 63.
If you retire at age 63, it would be wise to plan your savings for about 30 years. Many financial experts recommend using the 4% rule to help you save longer. The rule involves withdrawing 4% of your savings in the first year of retirement, then adjusting each year for inflation.
After saving $390,000, the 4% rule would give you $15,600 per year, or $1,300 per month — not accounting for inflation. This may not be enough to cover all living expenses on your own.
Additionally, you need to have a well-funded emergency savings account, especially at your age. Medical bills will become more costly as they age, and retirees can’t rely on their next paycheck to help pay the bills. That’s why an emergency fund is crucial, and why you should choose to maximize your cash returns with a high-yield savings account.
Designed for those looking for a reliable and safe plan, Wealthfront’s Cash Account offers an annual interest rate of 4%, which is more than 10 times the national average.
Wealthfront offers accounts that allow fast (and free) transfers to Wealthfront internal investment accounts as well as external accounts. This gives you the flexibility you need with funds on hand.
Plus, you can get a $30 bonus with Wealthfront Cash when you fund a new account today with $500 or more.
If you’ve been working since your 20s, you may be eligible for Social Security. The current average monthly benefit for retired workers is approximately $2,005(3). Combined with the savings withdrawals mentioned above, this provides approximately $3,300 per month.
In other words, if you are 63 years old, you can apply for Social Security early. Your full retirement age may be 67, and taking it early means reduced benefits throughout your life.
If you have limited savings for retirement, it’s worth considering working part-time for a few more years. This can help you defer Social Security, preserve your benefits, and reduce the stress on your savings.
If you live in one of the lower-cost-of-living areas of the country, it’s possible to live on such a small amount each month, but you may want to take a closer look at your budget to see what’s really feasible. Working with a financial advisor can help you plan for your 60s: whether it’s retirement or committing to a few more years of work.
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It’s natural to feel burned out at age 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 dipping into your savings.
Even if you no longer contribute, allowing your savings to remain constant over a few years can give you greater flexibility.
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). Transitioning from a high-stress job or an unfulfilling role to a less demanding or more enjoyable job may make a few years of work feel more manageable.
You may also consider moving to part-time employment. According to a 2024 Willis Towers Watson survey, 34% of workers over the age of 50 are either starting to reduce their hours or looking to retire gradually(5).
A part-time work schedule can help cover costs, potentially provide ongoing savings, and best of all, keep you covered until you become eligible for Medicare at age 65.
If you choose the part-time route, you’ll want to make sure your new paycheck is as effective as possible. Monarch Money can help you create a new budget plan and track your progress towards your savings goals to boost your savings.
Monarch Money makes it easy to track your spending and see how you’re spending each month.
This financial management platform provides all-in-one tools to help you track investments, spending, and budgeting, and even provides personalized recommendations so you can feel confident about your money. You can also feel confident sharing your financial data with Monarch Money – the app is Plaid-protected for secure data integration and uses multi-factor authentication when logging in, so you can keep your account safe.
Download the app now and enjoy a 7-day free trial. After that, you can use code WISE50 to get 50% off your first year.
If traditional work doesn’t appeal to you, gig work is another option. It offers flexibility, the ability to take optional time off, and the opportunity to earn extra income. This can help reduce your reliance on benefits, especially if you are trying to delay collecting Social Security to avoid a permanent reduction in benefits.
Working in some capacity can help you stave off boredom and give your days structure. Whether it’s part-time or gig work, staying active can be financially and mentally rewarding.
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Federal Reserve (1); Northwestern Mutual (2); Social Security Administration (3); American Association of Retired Persons (4); Willis Towers Watson (5)
This article provides information only and should not be considered advice. It is provided without any warranty of any kind.
