Americans 70 and older have an average 401(k) balance of just $250,000, according to recent Fidelity data. This figure represents a modest decline from the $251,400 average among those ages 65 to 69, as many retirees begin drawing down their savings.

While $250,000 might seem substantial, it translates to limited retirement income. At a 6% withdrawal rate, this balance generates only $15,000 annually - well below the $25,000 average Social Security benefit. Workers approaching retirement should consider catch-up contributions, with those ages 60-63 able to contribute an extra $11,250 beyond the standard $8,000 limit.

Financial planners recommend building savings early and investing strategically to avoid relying on such modest balances. Options for those nearing retirement include downsizing to free up cash for contributions or delaying Social Security benefits to receive an 8% annual increase up to age 70. The data reveals a significant retirement savings gap that many Americans must address.