Core Insights - Less than half of retirement savers are on track to maintain their current lifestyles after leaving the workforce, highlighting a significant gap in retirement preparedness [3][7] - Older Gen Z workers (ages 24-28) are the most prepared for retirement, with 47% on the right track, while preparedness decreases among older generations [4][7] Retirement Preparation by Generation - 47% of older Gen Z workers are adequately preparing for retirement, compared to 42% of millennials, 41% of Gen Xers, and 40% of pre-retirement Baby Boomers [4][7] - Despite lower savings rates, nearly 90% of Baby Boomers own homes, which may provide additional financial support in retirement through home equity [5] Planning and Savings Strategies - Retirement planning experts recommend saving between 10 to 12 times one's final salary to replace approximately 70%-80% of pre-retirement living costs [6] - Consistent contributions to retirement accounts are crucial for younger planners to leverage the benefits of compounding [8] - Those nearing retirement should consider catch-up contributions if they lack sufficient savings [8] Importance of Defined Contribution Plans - Access to defined contribution plans significantly increases the likelihood of achieving retirement savings goals, with those having access being twice as likely to succeed [1][9]

Core Insights - The importance of saving for retirement throughout one's career is emphasized, as early investment allows for the benefits of compound growth [1] - Average retirement account balances tend to increase with age, but many older Americans still have insufficient savings for a secure future [2] Retirement Savings by Age - Vanguard's report outlines average and median balances in defined contribution plans across different age groups: - Under 25: Average $6,899, Median $1,948 - 25 to 34: Average $42,640, Median $16,255 - 35 to 44: Average $103,552, Median $39,958 - 45 to 54: Average $188,643, Median $67,796 - 55 to 64: Average $271,320, Median $95,642 - 65 and over: Average $299,442, Median $95,425 [4] Savings Growth and Retirement Planning - Account balances increase significantly with age, highlighting the necessity of early and consistent contributions to retirement accounts [5] - Many individuals are falling short of adequate retirement savings, but there are strategies to catch up [6] Insufficiency of Retirement Funds - The median balance for those aged 65 and over is only $95,425, which translates to an annual income of $3,817 if following the 4% withdrawal rule [7] - Combining this amount with Social Security benefits is often insufficient to maintain pre-retirement quality of life, as Social Security typically replaces only 40% of pre-retirement income [8]