Retirement Retirement Planning

Here's How Much the Average Boomer Has Saved for Retirement (How Do You Compare?)

New data reveals how much Baby Boomers have saved and what steps you can still take to strengthen your retirement outlook.

By Adam Palasciano

Edited by Calista Headrick

Updated Dec. 18, 2025

Baby Boomers, now ages 61 to 79, should be taking a closer look at their long-term finances as they approach retirement. New research shows how much the average Boomer has saved, and the numbers reveal both progress and potential gaps. These figures highlight why planning for retirement remains essential, especially as living costs and life expectancies rise.

Understanding where you stand helps you make more informed decisions about your next steps.

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The average boomer may not have enough saved for retirement

Baby Boomers — Americans born between 1946 and 1964 — have accumulated meaningful savings, but many may still fall short of what experts recommend. According to Fidelity Investments, the average 401(k) balance for Boomers is $249,300, and the average IRA balance is $257,002.

Fidelity also reports that the average net worth for this age group is $409,900, including home equity and other assets. While these numbers show decades of disciplined saving, they may or may not be enough for a retirement that could last 20 to 30 years. Rising health care costs, inflation, and longer lifespans mean many retirees may need more than they expect.

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The majority of Americans think they need more than $1 million to retire comfortably

Many older Americans worry their savings won't stretch far enough, and recent data support that concern. Northwestern Mutual's 2025 Planning & Progress Study found that Americans believe they need $1.26 million to retire comfortably, a sharp drop from last year's estimate of $1.46 million but still much higher than what many have saved. Among those who have started saving, one in four report having only a single year or less of their current annual income set aside for retirement.

This gap highlights why Boomers may feel behind, even with solid balances.

Boomers should also factor in their Social Security benefits

Social Security remains a key income source for millions of retirees, but it rarely covers a full retirement lifestyle on its own. As of September 2025, the average retired worker benefit is $2,009.50 per month, according to the Social Security Administration. While helpful, this monthly benefit may only cover a portion of necessities such as housing, food, and health care.

Boomers with limited retirement savings may find themselves leaning more heavily on Social Security, increasing the risk of financial strain. Balancing personal savings with Social Security can help create a more reliable income stream.

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How to increase your retirement nest egg and get ahead financially

Even if you feel behind, there are steps you can take to strengthen your finances and improve long-term stability. Small adjustments over time can increase retirement income and reduce financial stress. Here are a few ways to build momentum.

Diversify your investments

A diversified portfolio spreads risk across stocks, bonds, and other assets, reducing the impact of market downturns. Boomers can continue investing strategically, even in retirement, by balancing growth and income-producing holdings.

Reviewing your asset allocation annually can help ensure it aligns with your goals and risk tolerance. A strong mix of investments may help your savings last longer.

Get a side hustle to increase your income

Part-time work or consulting provides extra income in addition to any retirement accounts and Social Security benefits. Even earning a few hundred dollars a month extra can reduce withdrawals from savings and extend the life of your nest egg.

Boomers can monetize skills from their careers through freelance projects, tutoring, or advisory roles, for example. A modest second income can also provide more flexibility during market downturns.

Max out retirement accounts and take advantage of catch-up contributions

Boomers can boost savings quickly by increasing contributions to 401(k)s and IRAs, especially now that catch-up contributions are available. Those age 50 and older can contribute extra amounts each year, helping them accelerate savings before retirement.

Taking advantage of these higher limits can significantly increase your balance over time. This strategy is especially useful for late savers who need to close the gap quickly.

Bottom line

Baby Boomers have built substantial savings, but many may still fall short of what's needed for a secure retirement. Understanding how your numbers compare to national averages can help you adjust your savings strategy and fine-tune your goals.

No matter where you stand today, small changes can meaningfully strengthen your retirement plan and improve your long-term financial stability.

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