If you just use the simple past tense, the sentence will seem "off" to many native speakers.
However, by 1960 this figure doubled.
The confusion isn't really over which tense to use. It could be as you think of it, a simple action that happened in the past. 1960 is obviously the past of now.
Rather, it's subject/object confusion. As written, it's unambiguous:
However, by 1960 this figure had doubled.
When we use the past perfect tense here, most readers assume that the subject (this figure) and the object (this figure) are the same. We could write:
However, by 1960 this figure had doubled itself.
But that isn't really necessary, most native speakers would understand "figure had doubled" to mean that the value of the figure had become twice what it once was.
But when we write,
However, by 1960 this figure doubled.
It can seem incomplete. What has the figure doubled? Had it doubled the number of Americans receiving old age pensions? Had it doubled the number of Americans in nursing homes? Or had it simply doubled itself, the number of Americans over 65?
I realize that it probably seems incomprehensible that "had doubled" resolves this confusion, since we could just as easily write:
However, by 1960, this figure had doubled the number of Americans in nursing homes.
But somehow, it does resolve that confusion. If no other object is specified, it had doubled itself.
And as others have mentioned, since 1960 is a specific point in the past, it is at least technically more correct to use the past perfect tense.