When it comes to retirement savings, recommendations, expectations, and realities can be way out of sync.

Let’s imagine the case of Bianca, who is in her 40s, and her dad Enzo, who is 75 and still working full-time at the same family restaurant where he started as a dishwasher more than 30 years ago. He recently worked his way up to making $65,000 per year, but never managed to put away much for retirement. He has just $31,000 in savings.

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Until recently, Bianca never worried about her hard-working, reliable dad, but when she began planning more seriously for her own retirement, she discovered his situation — and started to panic.

It’s no wonder her research sent her spiraling. According to a study from Northwestern Mutual, Americans believe you need a nest egg of $1.46 million to retire comfortably. Meanwhile, many personal finance experts suggest saving 10 times your annual salary.

That said, most people never reach anywhere near that. Federal Reserve data shows that as of 2022, the most recent year for which data is available, the median American aged 65 to 74 had $200,000 saved for retirement. Those who are 75 and over, like Enzo, have likely been dipping into their savings for a few years and typically have $130,000 invested (1).

Needless to say, $31,000 is far below average, and it’s natural to be worried about how he’ll get by. But the situation is far from hopeless. There are several moves Enzo can make to ensure a secure retirement. And if he’s able to work a little longer, he has a prime opportunity to boost his savings.

Axios analyzed data from the Bureau of Labor Statistics and found that almost 19% of Americans ages 65 and over were still working as of 2024 (2). That alone can help compensate for a lack of savings.

If Bianca’s father is 75, it means he’s beyond the point where it makes sense to delay Social Security. There is no financial incentive to hold off on taking benefits after age 70.

If you’re past retirement age, you can continue to work and still receive Social Security. Above a certain limit, the government deducts $1 from benefits for every $3 you earn. The limit is currently $62,160, so it won’t be a major factor in this case (3).

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