Here’s What Retirement Could Look Like for a 65-Year-Old With Average Savings, Plus Social Security

Retirement looks drastically different depending on how much you have saved, your lifestyle, and where you live. But the average retirement might be more modest than you’re expecting.

Workers are struggling to save enough for retirement on their own, and with pensions rare today, many people find themselves increasingly dependent on their Social Security checks. Here’s what that looks like in practice and what you can do if your retirement savings aren’t where you want them to be.

Image source: Getty Images.

What retirement looks like for the average 65-year-old

The average 65-year-old has $258,800 in their 401(k), according to Fidelity data from the second quarter of 2026. If we apply the 4% rule to this, that would give them $10,352 to spend in the first year of retirement. That amount would increase slightly each year to account for inflation.

You probably can’t live independently on $10,000 per year, and most seniors wouldn’t have to attempt it because they’d also receive Social Security benefits. The average monthly benefit is $2,086 as of July 2026. That adds up to roughly $25,000 per year. Together, that would give a single senior roughly $35,000 per year, plus any other retirement income sources they have. It’s still not much, but it could be livable in some areas, especially if your home is already paid off.

Married couples might have a bit more breathing room, particularly if both spouses qualify for average or above-average retirement benefits. Two typical retirement benefits would give them roughly $50,000, plus their $10,000 in savings. Or possibly $20,000 in average savings if both spouses have their own 401(k)s. That could give them somewhere around $70,000 to spend annually.

That could be enough for some people to retire comfortably on, while others might still need more. You’ll have to figure out what you need to save for retirement.

What to do if you’re behind on retirement savings

If you haven’t saved as much as you want for retirement, the obvious solution is to increase your savings rate and claim any 401(k) match you qualify for to make up the difference. But often, people struggle to save because they can’t afford to.

In that case, you might have to look into a better-paying job or start a side hustle. Or you might need to rethink your retirement plans. You could push back your retirement date to give yourself more time to save, or opt for a phased retirement, gradually reducing your hours rather than retiring all at once.

Explore a few options, and choose the one(s) that works best for you. You can always change your mind as you get closer to retirement if your circumstances change.