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For Your Life May 5, 2026

Older Americans Month Underlines a Shocking Statistic for Many Seniors; How Old National and SECURE 2.0 Can Help

As the saying goes, “Growing old is not for the weak.” And as statistics show, it’s also not for the unprepared.

Older Americans Month in May highlights financial security issues for many Americans age 55-64 years old who, despite the experience of many years in the workforce, are looking at less saved for retirement than they may need. According to the Federal Reserve’s Survey of Consumer Finances:

  • Americans ages 55-64 have a median of $185,000 saved for retirement
  • Americans ages 65-74 hold a median savings of roughly $200,000
  • The averages are significantly higher — more than $500,000 — but reflect a small number of high‑balance households rather than typical savings levels.

In the current economy, the average American estimates they will need approximately $1.4 million to retire. And with Social Security replacing only about 40% of pre‑retirement income on average, personal savings play a critical role in maintaining independence and quality of life.

It’s never too late to start saving

The encouraging news is that it’s not too late to take steps to improve retirement readiness. Old National Bank offers tools and guidance designed to support savers at every stage. Traditional and Roth Individual Retirement Accounts (IRAs) allow individuals to benefit from tax‑deferred or tax‑free growth, depending on eligibility and goals.

Old National’s retirement planning resources also help clients think strategically about each phase of saving, from growth to preservation to income, while aligning savings with Social Security timing, healthcare costs, and legacy goals.

How SECURE 2.0 can help later in life

Recent federal policy changes further strengthen the outlook for older savers. The SECURE 2.0 Act, now being implemented in phases, expands opportunities to build and preserve retirement savings later in life.

As of last year, workers ages 60-63 can make significantly higher “catch‑up” contributions to workplace retirement plans, allowing them to accelerate savings as retirement approaches. The law also raises the age for required minimum distributions (RMDs) to 73 years old, with a future increase to 75, and reduces penalties for missed distributions, which gives retirees more flexibility and breathing room in managing withdrawals.

In addition, Roth balances in employer plans are no longer subject to RMDs, allowing tax‑free savings to grow longer when income isn’t immediately needed.

Take a look at the possibilities

As we recognize Older Americans Month, there are a number of options and resources you can take advantage of, no matter what your situation:

  • A “dashboard-type” look at your retirement
  • Thoughtful planning
  • Trusted financial guidance
  • Taking advantage of expanded government‑supported savings options

With the right strategies, older (and younger) Americans can continue strengthening their financial foundation and move forward with greater confidence, no matter when they begin. To learn more or to begin your journey, click here.

 

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