If You've Saved This Much for Retirement by Age 70, You're Ahead of the Game

By age 70, many people are already retired and have started living on their savings. This can be a major mindset shift after you have worked hard throughout your life to try to grow your nest egg. Now that you are living on your retirement investments, you may start to see your balance decline.

If you're uncertain about whether your nest egg is likely to last, you may want to take a look at where your account balance stands relative to your peers. Here's what you need to know to do that.

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You'd need this much saved at 70 to be ahead of the game

Understanding how your savings compare to others can be fun, but the most useful measure of whether your savings are enough is to confirm whether you can cover your costs at a safe withdrawal rate. That said, if you have more money than most people, you may be ahead of the game and better able to support yourself.

The Motley Fool's research reveals how much people have saved for retirement by age. Based on the data, the median retirement account balance for Americans ages 65 to 74 is $200,000.

This remains higher than the $185,000 median balance among those ages 55 to 64, but the data also shows that median balances decline over time. In fact, among Americans older than 74, the median balance is $130,000. It's natural for the money in a retirement plan to fall over time because you need it to live on and supplement Social Security.

However, you don't want to spend your funds too fast and risk running out of retirement money when you still need it. Following the 4% rule, which means limiting withdrawals to 4% the first year and then adjusting for inflation thereafter, can be a good approach. While there are some concerns about whether the 4% rule is still viable in an age of longer lifespans and lower projected ongoing returns, it's still a reasonable rule of thumb to guide you.

Of course, a $200,000 nest egg doesn't produce much income if you follow the 4% rule. It could provide you with around $8,000 per year to supplement Social Security benefits.

For some, that's enough. For others, it will cause significant financial hardship. Fortunately, many people have more than this median amount, and if you're one of them, then you may be in better shape.

What to do if your retirement money isn't going far enough

If you're not ahead of the game, are 70, and are struggling to live on your savings, you have a few options.

You can downsize your home and invest the equity you have. You could also move somewhere with a lower cost of living, try to work a little longer if you haven't retired yet, or limit big purchases and save up for them over time.

Living on a careful budget will be key if you're relying on Social Security and your median savings, so be sure you're not withdrawing too much and that you're doing all you can to stay within your means.

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