Turning 60 can make retirement feel suddenly real, but how do you know if you’re financially ready? A common rule of thumb suggests having six to eight times your current salary saved by now. It’s a helpful checkpoint, but for some, it won’t be enough.

Whether you’re feeling confident or coming up short, there’s still time to make meaningful progress. Here’s how to assess your retirement readiness—and what to do next.

How Much Should You Have Saved by Age 60?

Many experts suggest having at least six to eight times your annual salary saved by 60. That means someone earning $100,000 should have around $600,000 to $800,000 tucked away. But that’s a general marker, not a finish line.

A more aggressive benchmark is to target 20 times your expected retirement income, says financial advisor Noah Damsky, founder of Marina Wealth Advisors. That way, your savings can better weather inflation, investment risk, and unexpected expenses over the decades ahead. So if you’re 60 and planning to retire at 65, adjust your current salary upward by about 16% to account for inflation; if you’re waiting until 70, adjust by 35%. Then multiply by 20.

For instance, someone earning $300,000 today and planning to retire at 65 should aim for roughly $6.96 million in retirement savings, according to Damsky. That said, these figures are just rough guides. “Don’t stop at the 1-yard line and try to get by on a back-of-the-napkin approach to your financial future,” he says. If you’re unsure, an advisor can help you tailor the plan to your exact situation.

The 4% Rule

Ben Liespresident of Delphi Advisers, points out that another common framework is the 4% rule. This involves dividing your annual spending by 4% to estimate how large your retirement portfolio should be.

For example, if you plan to spend $50,000 a year, you would need $1.25 million saved. It’s simple, but Lies points out that this rule can be overly simplistic, as it doesn’t take into account other sources of income or the tax status of your investments.

For someone who has the bulk of their investments in tax-deferred accounts (think 401(k)s and IRAs), he says you should aim to increase your distribution need by your estimated tax bracket. For example, if you need $50,000 a year and expect to pay 20% in taxes, you’ll actually need to withdraw around $60,000 annually, raising your target portfolio size to $1.5 million.

How to Know If You’re Actually Ready

There’s more to readiness than account balances. Damsky suggests starting off by answering these three questions:

What do you owe? Don’t forget to factor in your debt when thinking about your overall savings. “A $5 million portfolio may sound like plenty in retirement,” Damsky says. “However, if you have a $3 million mortgage, then retirement may not be feasible because you only have $2 million in net assets.”

How much do you spend? Lies recommends building a detailed year-by-year cash flow plan to understand your spending. If you’re not sure where to start, it’ll help to analyze your current spending patterns. “Some expenses go down and others go up a bit, but I find that people tend to spend a similar amount of money as they embark on their retirement journey,” he says.

Are you accounting for medical and long-term care costs? Damsky notes that cognitive or physical ailments can easily cost tens of thousands per month for great care. It’s vital to factor in these worst-case scenarios now, even if you never need them.

Both Damsky and Lies urge people to log in to the Social Security Administration’s website to get personalized estimates and test different claiming scenarios. The timing of when you claim can significantly impact your benefits, especially if you’re married or were previously married.

What If You’re Behind?

It’s not too late to take action at 60—but the key is understanding your trade-offs. At the end of the day, you have control over your savings and expenses.

Lies keeps it simple: “Where you save is much less important than how much. Just save and invest.” If you’re not sure where to start, he says the safest path is to delay retirement slightly while boosting savings. Also, make sure you’re taking advantage of catch-up contributions if you aren’t already.

You can also tackle expenses. “Maybe you’re willing to downsize your home so you can retire sooner,” says Damsky. “Maybe you’re vehemently against downsizing, but you’re willing to cut back on luxuries.” Others might be comfortable retiring sooner by adjusting expectations for their lifestyle. Take stock of what matters most to you and adjust your savings, expenses, and expectations to find a plan that works.

The Bottom Line

Your 60s can be a time of clarity—not panic—about retirement. Aiming to have saved six to eight times your income is a solid benchmark, but true readiness requires a deeper look at your debts, spending, health risks, and lifestyle goals. If you’re behind, don’t despair: You still have powerful levers to pull, from delaying retirement to downsizing or maximizing contributions.

As Lies puts it, “The more confidence [retirees] have, the better long-term decisions they will make and the happier retirement will be.” And that confidence starts by facing the numbers, not avoiding them.