My thoughts? Do NOT quit saving for retirement. You simply do not know what the future will look like. For comparison, when I was about your age (guessing here), my husband and I thought $1M was more than enough to retire on, for both of us. Of course, we assumed a growth of 6-8% and frankly $60K was more than we were earning at the time, so including what we thought we might get from Social Security, we thought we'd be in grand shape.
Three times, the stock market plunged/corrected and we lost a great deal in our conservative porfolio, postponing that $1M mark we hoped to reach each time when we were very nearly there. That can also happen.
I'm not knocking $60K/year. At. All. But I know what my inlaws paid for a senior living apartment and for my MIL's nursing home. $60K would not have covered my mother in law's nursing home care/year. It would have left precious little after paying for the (very nice) senior living apartment where my father in law lived for about 4 years. Maybe enough to cover taxes. Maybe not. My inlaws did not move into senior living until well into their 80's. Their home was paid for, and they moved because it was too much house/becoming too difficult for my MIL who was rapidly losing mobility. They sold their home in a very upscale suburb of a major city for much more money than I will ever be able to sell my home for. My father in law had retired early. Near the end of his life, he was very much afraid of running out of money. If my mother in law had not predeceased him by a few years, he might well have done.
I also have experience looking for nursing homes for Medicaid patients. This is not a situation you (or your family on your behalf) wish to be in, believe me. It isn't that you are treated less well. It's just that, at least at the time when I was looking for my mother, nursing homes had X number of beds set aside for Medicaid patients. X was a small number, and usually filled at any place I was willing to let my mother stay---and by that time, a nursing home was really needed for her. You have fewer choices and the best homes fill their beds very, very quickly.
Whatever your employer, please consider maximizing your contribution to whatever retirement plan they may offer. I realize you have young children and you are probably looking ahead to funding their education. Yes, do that, to the extent that you possibly can BUT DO NOT SACRIFICE YOUR RETIREMENT SAVINGS FOR THEIR COLLEGE!!!!
I truly hope that the US takes its collective head out of its ass and starts to adequately fund post secondary education as well as it did 40+ years ago-or better. I truly hope that the US goes to a more sane way of handling medical care, end of life care, retirement care.
But you can always gift your children money after you reach 59.5 without incurring penalty.
More wisely even, you can start to think about what you want your life to look like in your 60's and 70's and 80's. So with that in mind, look at your home and think about how well your parents or your inlaws would be able to live in it today--and project out another 10-20 years. Think about whether you have a first floor bedroom/bath/laundry. Think about how accessible your home would be if you or your wife had mobility issues. How well can you reach your shelves? How well do you think you'll be able to in 20 years? 40 years? If you consider remodeling or purchasing a new home, think about these things. You want doorways wide enough to accommodate a wheel chair, should the need arise. Ditto shower. Ditto kitchen. Think about flooring. Think about closets. Think about yard work. Sure, your kids might be close by and willing and able to mow lawns, clean windows, etc. Or maybe not.
Prepare for the worst case scenario. Take care of yourselves with an eye to preventing the worst case scenario.