Moneywise and Yahoo Finance LLC may earn commissions or revenue through links to the content below.
According to the Federal Reserve (1), in 2022, the most recent year with available data, the average retirement savings for Americans ages 55 to 64 was $185,000. Let’s say you’re 63 with $390,000 saved up. That means you have a little more than twice the average for your age group.
Still, $390,000 may not stretch that far in retirement. A recent survey by Northwestern Mutual found that Americans, on average, need $1.26 million to retire comfortably—down from $1.46 million the previous year (2).
The reality, though, is that everyone’s retirement needs vary widely. Depending on your lifestyle, spending habits, and other income sources, it may be possible to retire on $390,000, especially if you are frugal and have minimal expenses.
Here’s an estimate of the monthly income you can expect if you retire at 63 with that amount.
If you’re retiring at 63, it’s wise to plan your savings for about 30 years. Many financial experts recommend using the 4% rule to help stretch your nest egg over time. This rule involves withdrawing 4% of your savings in the first year of retirement, adjusted for inflation annually thereafter.
With $390,000 in savings, the 4% rule gives you $15,600 per year, or $1,300 per month — not accounting for inflation. That probably isn’t enough to cover all living expenses by itself.
Additionally, you need access to a fully funded emergency savings account, especially at your age. Medical expenses are likely to increase as you age, and retirees may not be able to rely on another paycheck to help pay the bills. That’s why an emergency fund is important — and why you should choose to maximize the return on your stash of cash with a high-yield savings account.
Wealthfront’s Cash Account is designed for those looking for a reliable and safe plan, offering 4% APY, which is 10 times higher than 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 on-hand funds.
Plus, when you deposit $500 or more into your new account today, you can get a $30 bonus with Wealthfront Cash.
If you’ve worked since your 20s, 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, that provides about $3,300 per month.
That said, if you’re 63, you’ll be claiming Social Security early. Your full retirement age is likely 67, and claiming early means fewer benefits for life.
If you’re retiring with limited savings, it’s worth considering part-time work for a few years. This can help you delay Social Security, protect your benefits and reduce stress on your nest egg.
Although it may be possible to live on a smaller monthly amount if you live in one of the less expensive areas of the US, you may 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 committing to the next few years of work.
A trusted financial advisor is ethically and legally required to act in your best financial interests at all times. You can have a fiduciary with you [Advisor.com](https://moneywise.com/c/1/410/1777?placement=4), a platform that connects you with vetted financial advisors.
It’s simple: just answer a few quick questions about yourself and your finances. From there, the platform will match you with experienced financial professionals to help you develop a plan to achieve your homeownership or retirement goals.
You can view consultants’ profiles, read past client reviews and schedule an initial consultation with no obligation to hire.
It’s natural to feel burned out at 63, especially if you’ve been working steadily since your 20s. But with $390,000 in savings, it might be wise to delay tapping into your nest egg.
If you’re contributing now, letting your savings grow untouched for a few years can give you more flexibility later.
One option to consider is a job change. A 2025 AARP survey found that 24% of Americans age 50 and older plan to change jobs this year (4). Changing from a high-stress job or fulfilling role to something less demanding or more enjoyable can make a few years of work more manageable.
You may also consider moving to a part-time job. According to a 2024 Willis Towers Watson survey, 34% of workers age 50+ have either started reducing their hours or plan to gradually retire (5).
A part-time work schedule can help cover expenses, possibly allow for continued savings, and — critically — keep you insured until you’re eligible for Medicare at age 65.
If you choose 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 toward your savings goals for padding your nest egg.
Monarch Money allows you to easily track expenses and understand how you spend your money month to month.
This financial management platform offers an all-in-one tool to help you track investments, spending and budgeting, and also offers personalized advice so you can feel confident about your money. You can also feel confident about 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, gig work is another option. It offers flexibility, the ability to take time off when you choose, and the chance to earn supplemental income. This can help reduce your reliance on benefits, especially if you are trying to delay claiming Social Security to avoid a permanent reduction in benefits.
Working in some capacity can help stave off boredom and give structure to your days. Whether it’s part-time or gig work, being active can be financially and mentally rewarding.
We rely only on vetted sources and reliable third-party reporting. For details, see ourEditorial 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. It is provided without warranty of any kind.
