Here’s how much the average working baby boomer has saved for retirement — how do your savings stack up?

With the youngest baby boomers now 61, much of the generation is already retired or nearing retirement. However, data shows many have inadequate savings and may struggle to maintain their standard of living.

In fact, some boomers have saved so little that younger Americans could surpass them with just a few years of disciplined saving and investing.

Here’s a closer look at the boomers’ financial state — and what it takes to get ahead on the path to financial freedom.

At the end of 2024, boomers had an average 401(k) balance of $249,300, according to Fidelity Investments. [1]

Many also hold other assets such as savings accounts, brokerage accounts, and real estate. However, Fidelity reports that the median net worth of households led by someone aged 65 to 74 is just $409,900. [2]

These figures fall short of recommended retirement benchmarks. Fidelity suggests retirees should aim for savings equal to 10 times their annual salary by age 67. With the median salary for Americans aged 55 to 64 at $65,936, according to SmartAsset [3], it implies a target of about $659,360.

Yet, most expectations are even higher. A Northwestern Mutual survey found that the average “magic number” Americans say they will need for retirement is $1.26 million. [4] With average savings and net worth well below that figure, it’s no surprise that about 40% of boomers say they are at least somewhat likely to outlive their savings.

With limited resources, many boomers may be forced to take on debt, rely heavily on Social Security, cut back their lifestyles, or even return to work.

If you’re not part of this cohort, there’s still time to chart a different course.

Read more: There’s still a 35% chance of a recession hitting the American economy this year — protect your retirement savings with these 10 essential money moves ASAP

Whatever your personal “magic number” for retirement may be, starting early and staying consistent can get you there — often well ahead of where the average boomer stands today.

The median salary for someone aged 35 to 54 ranges from $69,472 and $70,512, according to SmartAsset. Fidelity recommends having 2x your salary by age 35, 4x by 45, and 7x by 55. To hit these milestones, Fidelity suggests saving 15% of your pre-tax income, invested in a diversified portfolio focused on growth and income.

For example, if you earn $70,000 and consistently save 15% per year in a low-cost S&P 500 index fund — which has averaged about 10% annual returns since 1957 — you could reach 2x your income in around nine years and 7x in about 18 years.

That means you could surpass the average boomer’s 401(k) balance of $249,300 in just over 12 years.

In short, consistency pays off — and you don’t need to be wealthy to build a secure retirement. If you want to reach your target even faster, you can increase your savings rate or grow your income over time.

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[1]. Fidelity. “How do your retirement savings stack up?”

[2]. Fidelity. “What’s the average net worth for your age?”

[3]. SmartAsset. “The Average Salary by Age in the U.S.”

[4]. Northwestern Mutual. “Americans Believe They Will Need $1.26 Million to Retire Comfortably According to Northwestern Mutual 2025 Planning & Progress Study.”

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.