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In 2022, the most recent year with available data, the median retirement savings for Americans aged 55 to 64 was $185,000, according to the Federal Reserve (1). Let’s say you’re 63 with $390,000 saved. This means you have a little more than twice the median for your age group.
Still, $390,000 may not stretch that far in retirement. A recent survey by Northwestern Mutual found that Americans estimate needing $1.26 million, on average, to retire comfortably — down from $1.46 million the year before (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, particularly if you’re frugal and have minimal expenses.
Here’s an estimate of the monthly income you might expect if you retire at 63 with that amount.
If you’re retiring at 63, it’s wise to plan for your savings to last around 30 years. Many financial experts suggest using the 4% rule to help your nest egg stretch that long. This rule involves withdrawing 4% of your savings in the first year of retirement, then adjusting for inflation annually.
With $390,000 saved, the 4% rule gives you $15,600 per year, or $1,300 per month — not accounting for inflation. That likely isn’t enough to cover all living expenses on its own.
Moreover, you need access to a fully-funded emergency savings account, especially at your age. Medical expenses will become more likely as you get older, and retirees can’t rely on the next paycheck to help pay the bills. That’s why an emergency fund is crucial — and why you should choose to maximize the returns on your stash of cash with a high-yield savings account.
Wealthfront’s cash account is designed for those seeking a reliable and safe plan, offering a 4% APY, which is more than 10x the national average.
Wealthfront offers an account that allows for fast (and free) transfers to internal Wealthfront investing accounts, as well as external accounts. That gives you the flexibility you need with your on-hand 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 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 above savings withdrawals, that provides roughly $3,300 per month.
That said, if you’re 63 years old, you’re claiming Social Security early. Your full retirement age is likely 67, and claiming early means reduced benefits for life.
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, preserve your benefits, and reduce the strain on your nest egg.
While it may be possible to live on this small monthly amount if you’re in one of the less expensive areas in the U.S., 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 make a plan for your 60s: Whether it’s retirement or committing to another few years of work.
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It’s natural to feel burned out by 63, especially if you’ve been working steadily since your 20s. But with $390,000 in savings, it may be wise to delay tapping into your nest egg.
Even if you’re no longer contributing, letting your savings grow untouched for a few more years can give you more flexibility later.
One option to consider is a job change. A 2025 AARP survey found that 24% of Americans aged 50 and older plan to switch jobs this year (4). Transitioning from a high-stress job or unfulfilling role to something less demanding or more enjoyable could make a few more years of work feel more manageable.
You might also consider shifting to part-time work. According to a 2024 Willis Towers Watson survey, 34% of workers age 50+ have either started reducing their hours or want to phase into retirement gradually (5).
A part-time work schedule could help cover expenses, possibly allow for continued savings, and — critically — keep you insured until you’re eligible for Medicare at 65.
If you opt for the part-time route, you will want to ensure that 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 for padding out 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 even 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 employs 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’re 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, staying active can be both financially and mentally rewarding.
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The 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.
