6 Signs Your Retirement Savings Put You Ahead of the Average Boomer

Many retirees feel behind when it comes to saving in their 401(k) retirement plans, and many news stories and articles frequently mention this. However, there are also many people who are way ahead of their peers when it comes to building their nest egg.

For some, high incomes make it easier to max out 401(k)s. Others may not have a high income but saved diligently for retirement since their 20s. Here are a few signs that your retirement savings put you ahead of the average Boomer, as well as a few tips on how to protect it.

The average Baby Boomer has less than $250,000 saved

Fidelity reports that the average 401(k) balance for Boomers is $249,300, and the average IRA balance is $257,002. However, the average retirement account is not always representative of what's most common, since high earners tend to skew the results. The median balance is likely more indicative of the average person's retirement savings.

According to Vanguard's 2025 How America Saves report, the median 401(k) balance across all age groups is just $38,176. Because many people have low retirement account balances, they often rely on Social Security to supplement their income in retirement.

You're ahead if you've saved 10x your salary

Fidelity's benchmark for retirement readiness is having 10 times your income saved by age 67. Fidelity also recommends having six times your income saved by age 50 and eight times your income saved by age 60. If you've reached these milestones, then you are likely ahead of others your age when it comes to retirement savings.

These amounts give you enough money to withdraw a small portion annually while the rest of your balance continues to compound and grow in the market.

You save 15% of your income

If you saved 15% of your income during most of your working years, you'll likely be ahead of others in your generation. Combine that with other positive personal finance steps like paying off all high-interest debt and paying off your mortgage before retirement, and you'll be on your way to having financial security as you age.

You maximize catch-up contributions

Catch-up contributions are one of the best ways to maximize your retirement savings before you stop working. Thanks to the Secure 2.0 Act, there have been a few changes in catch-up contributions.

Now, workers aged 50 and above can contribute an extra $8,000 a year in addition to the 401(k) maximums. Those who are between the ages of 60 and 63 are eligible for super catch-up contributions, where they can contribute an extra $11,250. Combined with the new $24,500 401(k) maximum, this means workers ages 60-63 can contribute a total of $35,750.

You don't get early withdrawal penalties

Another way many Boomers save more than others in their generation is by avoiding early withdrawal penalties. According to Vanguard's How America Saves report, 6% of workers who contributed to a 401(k) made a hardship withdrawal in 2025. The Secure Act allows workers to take out $1,000 without penalty if it's for a documented hardship, but other withdrawals or 401(k) loans come with fees and the loss of any potential market gains.

You have an emergency savings account

Because the stock market fluctuates and withdrawing money in a down market can impact your overall retirement savings, many financial experts recommend you have an emergency savings account of one to two years. If you have a savings account to tap into during hard times, that can put you ahead of your peers because you'll be better able to protect your nest egg.

You have a solid withdrawal strategy

Having a retirement nest egg that's ahead of your peers is definitely an accomplishment. However, what's perhaps more important is having a solid withdrawal strategy for your retirement years, especially if you have multiple retirement accounts, like 401(k)s, IRAs, and HSAs.

A withdrawal strategy is a plan for taking out your retirement money in the most tax-advantaged way that gives you the greatest financial benefit over time. Many financial advisors recommend withdrawing retirement money in a specific order depending on the types of accounts you have, so it's always worthwhile to consult with a financial planner if you have questions.

Bottom line

Ultimately, having a large nest egg won't guarantee you a stress-free retirement, but it is the foundation for it. If you've reached a solid retirement milestone and you have significant money saved, that's worth celebrating. However, it's also worth protecting. You can do that by building an emergency fund to help you through low-market years. Additionally, take the time to research withdrawal strategies and consult a financial advisor if you need a second opinion.