Of course, none of these paths are optimal — especially since one of the key rules of thumb for retirement readiness is to be debt-free, according to Cruze.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 to maintain their quality of life.Meanwhile, a 2025 Northwestern Mutual research study found that the average “magic number” Americans think they will need for retirement is $1.26 million. With average savi ...

Core Insights - Concerns about the future of Social Security payments are rising, with 59% of non-retired Americans worried about its availability upon retirement [1] - Social Security benefits are designed to replace only 40% of pre-retirement income, with the average monthly benefit estimated at $2,008, translating to an annual income of just over $24,000, which is insufficient for a comfortable retirement [2] - A significant portion of Americans, nearly 50%, are making a major mistake regarding Social Security, indicating a lack of awareness or planning for retirement [4] Retirement Savings Trends - Only 1 in 10 Americans save 15% or more of their income for retirement, which is the recommended amount by industry experts [4] - A study indicates that 42% of Americans are not currently saving for the future, and only 54.4% of families have retirement accounts [4][12] - The average retirement account balance is $148,153, while the median balance is just $38,176, far below the estimated $1.26 million needed for a comfortable retirement [12][13] Recommended Savings Strategies - Establish a saving benchmark of at least 15% of gross income to secure a comfortable retirement, as the current personal savings rate is only 4% [7] - Maximize contributions to tax-advantaged accounts like 401(k)s and Roth IRAs to mitigate tax liabilities and enhance savings potential [11][12] - Consider investing in gold through a self-directed gold IRA for protection against market shifts while enjoying tax advantages [14][15] Alternative Income Sources - To enhance retirement income, individuals are encouraged to explore passive income sources such as rental properties, with platforms like Mogul offering fractional ownership opportunities [17][18] - Arrived allows investments in rental homes with as little as $100, providing a way to earn rental income without the burdens of property management [20][21] - Regularly renegotiating salaries or seeking lateral career changes can also improve financial situations and boost retirement prospects [22]