Retirement Retirement Planning

9 Signs Your Retirement Savings Sets You up Better Than the Average Baby Boomer

Find out if you’re doing better than most baby boomers when it comes to retirement savings.

By Maddy Scheckel

Edited by Laura Ratliff

Updated March 2, 2025

Are you concerned about having enough money for retirement? This is a common apprehension among Baby Boomers, but you may be ahead of the curve regarding your retirement savings.

Your retirement plan is your playbook for making the right money moves. So, let’s take a fresh look at how you’re doing compared to others in your age group.

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You’re saving more than the average baby boomer

Consistently contributing to retirement accounts, such as IRAs or 401(k)s, can set you ahead of the typical baby boomer, who often hasn't saved enough for retirement.

The median age at which baby boomers began contributing to their 401(k) or a similar plan is 35, and the median contribution is 10% of their annual pay.

Most boomers hold around $194,000 in their household retirement accounts, while $10,000 is the median emergency savings among baby boomers.

So if your numbers beat those, you’re in the top half of the Baby Boomer generation in terms of saving money.

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You have a clear retirement plan

A concrete retirement strategy, including setting goals and understanding retirement expenses, can position you ahead of many baby boomers who lack a formal plan.

Only 28% of baby boomers say they know much about personal finance — and just 34% of Baby Boomers have a backup plan for income if they are forced to retire before they’re financially ready.

You’ve already paid off debt

Being debt-free or having low debt means more of your income can go toward savings. Unfortunately, many baby boomers are still carrying significant debt into retirement.

Almost 40% of baby boomers agree with the statement that debt is interfering with their ability to save for retirement, and 23% indicate they are just getting by to cover basic living expenses, which leaves them unable to save more for retirement.

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You’re diversifying your investments

Baby boomers who have diversified their retirement investments are ahead of their generational peers who may still have a large portion of savings in low-interest or traditional accounts like savings bonds.

Two-thirds of baby boomers invest in savings accounts outside of work, and while 75% of baby boomers have savings in bank accounts, only 53% take advantage of IRAs. Even fewer — just 20% of baby boomers — utilize an annuity.

You’ve started saving early

Starting retirement savings early on, such as in your 20s or 30s, gives you a significant advantage over most baby boomers, who often begin later in life.

The median age at which baby boomers began saving is 35. This means half of baby boomers didn’t begin saving until age 36. So, if you started earlier, you’re in your generation's top half of savers.

You’re not fearful of running out of money

Nearly half (47%) of all baby boomers fear a reduction or elimination of Social Security in the future.

If you’re not relying on Social Security to fund the bulk of your retirement, you’re in a better position than many baby boomers.

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You don’t expect to need to work beyond age 70

Most baby boomers expect to work past age 70 or do not plan to retire.

If you feel comfortable that your retirement savings will allow you to leave the workforce by age 70, you’re ahead of others in your generation. Of course, you may decide to work because you want to, but not being compelled to work to pay the bills is freeing.

Your Social Security income is greater than $1,976

According to the Social Security Administration, the average monthly Social Security retirement benefit as of January 2025 is $1,976.

Your social security income is impacted by your number of years in the workforce, your yearly earnings, and at which age you began taking your benefits. So, no matter how you did it, if you collect more than $1,976 per month, you’re ahead of others in your age group.

You are using a Health Savings Account (HSA)

While 71% of baby boomers are saving for healthcare expenses, only 17% use a Health Savings Account (HSA). An HSA is a savings account with significant tax advantages for people with a High Deductible Health Plan (HDHP). You can use the money to pay for qualified medical expenses.

Additionally, 29% of Baby Boomers state they are not saving for health care expenses.

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Bottom line

Noting your progress compared to others in your generation can help you accelerate your savings or take a deep breath and enjoy the reward of your hard work.

You can prepare for retirement by diversifying your investments, paying off debts, and creating a clear financial plan.

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Author Details

Maddy Scheckel

Maddy Scheckel, a former registered nurse turned personal finance writer, specializes in using credit card points for travel and everyday budgeting tips. Featured in Business Insider and The Money Manual, she shares insights on credit building, loans, insurance, and investing—drawing from her own journey of overcoming debt.

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You’re saving more than the average baby boomer

You have a clear retirement plan

You’ve already paid off debt

Get a free stock valued between $5 to $200

You’re diversifying your investments

You’ve started saving early

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You’re not fearful of running out of money

Get a free stock valued between $5 to $200

You don’t expect to need to work beyond age 70

Your Social Security income is greater than $1,976

You are using a Health Savings Account (HSA)

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