Are You Ready for Retirement? Here’s How Your Generation Stacks Up

Core Insights - Less than half (42%) of Americans are on track for retirement, with baby boomers being the least prepared generation [2][4] - Only 40% of baby boomers are on track to maintain their current lifestyle in retirement, facing significant savings shortfalls [4][5] - Median-income baby boomers earning $56,000 annually are projected to replace only 56% of their pre-retirement income, resulting in an annual shortfall of $9,000 [6] Generational Comparison - Nearly half (47%) of Gen Zers and 42% of millennials are on track for retirement, contrasting with only about 40% of baby boomers and Gen X [5] - Baby boomers missed key changes to defined contribution plans, such as 401(k)s, that occurred in the mid-2000s, limiting their retirement savings opportunities [7][8] Retirement Plan Access - Baby boomers entered the workforce before modern defined contribution plan features became common, which hindered their ability to build retirement savings during prime earning years [8] - The decline of defined benefit plans has resulted in younger generations benefiting more from increased access to 401(k)s compared to older generations [9] Actionable Steps for Baby Boomers - The time window for baby boomers to save for retirement is closing, making it increasingly difficult to compensate for missed savings opportunities [10]