Empower Reports $576,755 Average 401(k) Balance for Americans in Their 60s

Q: The new Federal Saver's Match offers up to $1,000 in free retirement money. Could a hidden rule prevent you from getting your share?

Yes. The Federal Saver’s Match can deliver up to $1,000 a year in government retirement money, but several eligibility rules can block or reduce it. The biggest gatekeeper is income. Beginning with the 2027 tax year, the full match generally goes to lower-income savers and then phases out. Based on current thresholds, single filers lose eligibility above about $35,500 in modified adjusted gross income, joint filers above about $71,000, and heads of household above about $53,250, with inflation adjustments expected. You also must contribute your own money to a qualifying retirement account. The match equals 50% of up to $2,000 in contributions, so a $1,000 federal deposit requires a $2,000 personal contribution. If you save less, the match is smaller. People under 18, full-time students for much of the year, and taxpayers claimed as dependents are excluded. A less obvious operational rule may matter too: the government match is not paid in cash. It must be deposited into an eligible retirement account, and current guidance indicates savers may need to designate a valid account on their tax return. If no eligible account is properly identified, the payment could be delayed or missed. The program also does not start until tax year 2027, with deposits expected afterward. That means no one can claim it yet for 2026. The practical takeaway is simple: check your income, make a qualifying contribution, and make sure you have the right retirement account ready to receive the match.

2 articles · Updated · FinanceBuzz · May 28

Americans in their 60s hold an average $576,755 in 401(k) accounts, according to Empower, but the median balance is far lower at $187,249.
That gap suggests a small number of large accounts are skewing the average, making the median a better gauge of what a typical worker nearing retirement has saved.
For 2026, workers 50 and older can contribute up to $32,500 to a 401(k), while those ages 60 to 63 can put in an even higher $35,750 through larger catch-up contributions.
The report also points to other late-stage retirement moves, including opening an IRA, using an HSA for future medical costs, securing full employer matches and avoiding cash-outs when changing jobs.