How much should you have saved for retirement in your 60s?

Your 60s can be an exciting time. You may be nearing the end of your career and preparing to enjoy the well-earned fruits of your hard work in retirement. Or you might be planning to work beyond conventional retirement age, either in your current job or a new dream job. Whatever you've mapped out for your retirement journey, you may be wondering if you've saved enough to cover your lifestyle. Read on for guidance on how much to save for retirement in your 60s and how to boost your contributions in the upcoming years.

Many financial advisors suggest a guideline of having eight times your current annual pay saved by your early 60s if you're planning to retire in your mid- to late 60s and aren't expecting to receive a pension.

If you earn $75,000 a year, that means you would need roughly $600,000 in retirement savings by your 60th birthday.

However, identifying your target retirement figure depends largely on your future spending plans. If you think you'll significantly decrease your expenses in retirement—by downsizing or moving to a less-expensive area, for example—you may be able to have less than the general guideline. But if you plan to spend more in retirement by traveling or pursuing expensive hobbies, you should increase your retirement savings target accordingly.

If you're coming up short of the 8x target, you're not alone. The Federal Reserve shows that adults aged 55–64 have a median savings of $473,500. That's not just their 401(k) balance—it includes home equity of about $350,000, retirement savings of about $185,000 and other assets of about $67,700.

When factoring in debt, the average person aged 55–64 has a median net wealth of $364,270.

Think about two things as you compare what you have to guidelines and averages: Your financial situation may be different, and even if you are behind, you still have time to take action and catch up.

For example, the guideline presumes that you're contributing 15% of your earnings to retirement accounts until the day you retire. It also assumes your investment portfolio equally balances stocks, which typically provide greater long-term growth potential, and fixed-income assets such as bonds.

You may be contributing more or less, or you may have a different portfolio mix, and that may be OK because you may have different retirement needs and goals than the "average" person.

Let's take a look at how to personalize your retirement savings outlook.

Your retirement checklist of plans and goals is different from everyone else's. You'll need to ask yourself some clarifying questions to get to your ideal retirement figure. It helps fine-tune your retirement planning if you start with a clear understanding of how much you'll need to cover your expenses in retirement, erring on the side of overestimating what you'll spend.

Here are four questions to ask as you estimate how much retirement savings to have in your 60s:

The recommendation of eight times your salary assumes you're retiring in your mid- to late 60s. If you plan to retire earlier, you'll need more savings—and the difference can be dramatic.

For one, you'll have fewer years to build up your nest egg if you leave the workforce early. Assuming good health, you'll also be withdrawing from your accounts for a longer time. Of course, the opposite is true if you decide to work longer.

A retirement income planning calculator can give you a general idea of how your retirement date will affect your asset needs. You may feel even more confident by meeting with a financial advisor, who can guide you in building and maintaining your financial plan.

Do you dream about traveling extensively or taking up new hobbies? If so, you may need to increase your savings amount.

Creating a post-retirement budget is one of the best ways to estimate your target savings amount. Some expenses may go down as you get older. You won't have commuting costs and may have paid off your loans. But you'll want to add in any new expenditures you'll incur, like those pastimes you hope to enjoy or any new charitable donations.

If you plan to move after you retire, be sure to research the cost of living where you plan to live. Are you looking to buy a two-bedroom townhouse in a specific city? Research how much they cost in today's market and make adjustments for inflation. Doing some research now will give you a much more accurate retirement budget to work from.

Don't forget to factor in the local tax treatment of your traditional 401(k) or IRA withdrawals. Several states—including Texas, Florida and Nevada—don't have an income tax. But if you plan to live in a relatively high-tax state like California or New York, your retirement dollars won't go quite as far.

Review the debt payments you have built into your retirement now. Will you still have them when you shift to not having a full-time income? Most likely, you'll have at least some. Experian data indicates the average total debt for baby boomers (born between 1946-1964) is about $94,880. In the last few years leading up to retirement, consider what your debt strategy will be.

For most adults, a home loan is the biggest source of debt by a wide margin, and there are pros and cons to paying off a mortgage before retiring. But if you have substantial credit card balances, auto loans or even student loans, those payments will affect your retirement budget as well. Some near-retirees want to offload all their debt before retirement, but it can be a strategic move to keep low-interest, good debt on the books.

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Once you have a clear picture of your ideal retirement, you'll need to consider ways to ensure you have enough income to cover your expenses. Estimating what you'll have coming in each month can give you confidence that you'll be able to retire comfortably—or give you the opportunity to adjust now to increase your savings.

Consider the following sources of retirement income, and then use a retirement income calculator for a personalized result:

You're eligible to claim your Social Security benefits as early as age 62, but doing so reduces the monthly amount you'll receive. If you wait until full retirement age (either 66 or 67, depending on your birth year), you'll get 100% of your benefits. For each year after your full retirement age until age 70, your monthly amount will go beyond 100%, potentially helping you make the most of your Social Security benefits.

Common retirement savings plans like 401(k)s, 403(b)s, 457(b)s and IRAs are some of the best ways to build your retirement income. You'll want to think carefully about when to start drawing income from these sources. Many of these plans are subject to required minimum distributions (RMDs) at a specific age, but you may be able to start taking penalty-free withdrawals as early as age 59½.

In addition, you may have other brokerage accounts that can help support you when you leave the workforce. Also be sure to include other assets, such as bank accounts and savings bonds, that you can draw from when you retire. But you'll want to factor in the tax treatment of these funds, as the IRS can take a bite out of your withdrawals.

Some people might have pension income from their careers, though it's becoming less common. Pensions guarantee a specific benefit amount based on a worker's income and years of service to the employer. If you do have a pension, be sure to factor that into your calculations as a source of guaranteed income.

The primary purpose of life insurance is death benefit protection, but you can use permanent insurance in other ways. If you no longer need the full amount of death benefit protection, you could opt to receive payments from the contract's cash value to supplement your other income sources. And a portion of those payments potentially would be tax-free. Permanent life insurance could be a valuable option to consider as you assess your retirement plan assets.

By the time you retire, the equity in your home can be a significant source of potential income. You have different ways to turn that equity into cash, such as selling your home to downsize. You also can generate income while staying put. At age 62, for example, you may be eligible to take out a reverse mortgage. However, you may want to consult with your financial advisor to determine what options are right for you.

In the Thrivent Retirement Readiness Survey, respondents said the most valuable piece of advice they would give their younger selves is to learn about tax implications for their retirement savings. Using strategies that minimize your tax bill can help your money last longer, giving you greater financial security.

Many of your retirement income sources will be taxed once you start withdrawing the money in retirement. Even Social Security benefits may be subject to tax. Understanding which tax "buckets" your assets fall into—tax now, tax later and tax never—is a good starting point:

• Tax now accounts are ones in which you've paid taxes upfront. These types of accounts typically are suited for current or short-term needs. Examples of tax now accounts include checking accounts, savings accounts and mutual funds.
• Tax later or tax-deferred assets are ones where your tax liability comes when you withdraw funds. Tax later assets are generally earmarked for longer-term needs like college and retirement. Examples of tax later accounts include 401(k)s, traditional IRAs, variable annuities and fixed annuities.
• Tax never or tax-free assets generally offer income tax-free treatment on the accumulated value and distribution of funds. Examples include Roth IRAs, Roth 401(k)s, health savings accounts and life insurance.

If you're behind on your savings goals, it's probably a good time to boost contributions to your tax later and tax never accounts—whether through a workplace plan or an IRA. While assets that are taxed now can be helpful for short-term needs, retirement accounts can help reduce your overall tax liability.

You also should incorporate tax efficiency into your savings strategy. If your portfolio leans too heavily toward tax later investments, for example, you might want to build your Roth allocation so you have a source of tax-free income later on. You even may consider converting part of your tax-deferred holdings to a Roth account—especially if you foresee being in a higher tax bracket in retirement.

Many people feel uncertain about how prepared they are for retirement. According to the Thrivent Retirement Readiness survey, only 5% of near-retirees said they have everything planned out and are fully ready for retirement. And 44% say they've done only minimal planning. But it's not too late. Here are some great ways to catch up on your retirement savings and renew your commitment to your retirement goals.

As you get older, one of the best tools at your disposal is catch-up contributions to your retirement accounts. If you're contributing to an employer-sponsored retirement plan like a 401(k) or 403(b) and you're 50 or older, you can contribute an extra $7,500 a year in 2025.

Since the SECURE Act 2.0, employees between the ages of 60 and 63 are eligible for an even higher catch-up contribution: $11,250 per year. That additional allowance means you can put up to $34,750 into workplace accounts in 2025.

For IRAs, the catch-up provision is a little more straightforward. If you're age 50 or older, you can invest an additional $1,000 per year, bringing the total contribution limit to $8,000.

A Roth IRA conversion involves taking a tax-deferred retirement savings account, like a traditional IRA or 401(k), and moving that money into a Roth IRA, which won't be taxed again after you pay taxes on the amount you convert.

Roth conversions can be a great way to build tax diversification into your retirement savings. Ideally, you want the time when you owe taxes on your different accounts to vary so your tax burden isn't too great at one period of time.

During the last few years of your career, you might want to consider what expenses you could trim from your budget. Simple things like canceling gym memberships and subscriptions, dining out less or taking public transit more could help increase your retirement savings.

You also can use this time to try out your retirement lifestyle. If you want to downsize to a smaller house, why not move a little earlier? The amount you save on utilities, property taxes and other expenses could go a long way toward slowing down your cash outlay.

If you're behind on your original investment goals, you might consider putting off retirement. Each extra year you earn a paycheck is another year you can put money aside and not draw down your savings. It's also a chance to delay Social Security to increase your eventual payout—until you max out your benefits at age 70.

Even when you're no longer working full time, there may be opportunities to generate some extra income from part-time employment or even passive income streams like rental properties. Once you reach full retirement age, this additional income won't affect your Social Security benefits.

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With factors from economic volatility to health issues, retirement is never predictable. By the time you reach your 60s, it's smart to account for the risks to the savings you've worked hard to put into place.

Adopting the right strategies helps ensure you can weather any storms on the horizon. For example:

• Build some hedges against high tax rates and inflation, which can throw you a curveball when you're anticipating a fixed income.
• Explore solutions that guarantee you don't outlive your money.
• Adjust your risk tolerance to shield against market volatility.
• Protect against the real risk of a health care event draining your savings.

Whatever you see for yourself in retirement, you want to be confident that you'll have the means to sustain that vision. By setting clear goals, saving effectively and budgeting, you can build a secure future and get the most out of this exciting next stage of life.

Looking for an expert to help guide you? Consider meeting with a Thrivent financial advisor who understands your core values and can help create a retirement plan tailored to fit your needs.