Retirement Savings Crisis Looms for Aging Boomers
With the youngest baby boomers now aged 61, much of the generation has already entered or is nearing retirement. Yet data shows many are financially unprepared to maintain their lifestyle after leaving the workforce. According to Fidelity Investments, the average 401(k) balance among boomers was $249,300 at the end of 2024, while the median household net worth for those aged 65 to 74 stood at just $409,900.
These figures fall well short of recommended benchmarks. Fidelity suggests retirees should aim for savings worth 10 times their annual salary by age 67 — around $659,000 for the median earner aged 55–64. A Northwestern Mutual study found that Americans’ average target for retirement is $1.26 million, far above the current savings level for most boomers.
As a result, nearly 40% of boomers say they’re at least somewhat likely to outlive their savings, a scenario that could force many to rely heavily on Social Security, take on debt, or even return to work later in life.
How Younger Generations Can Catch Up
For younger Americans, disciplined saving and smart investing can help close the gap — or even surpass boomer averages within a decade. Fidelity recommends saving 15% of pre-tax income and investing it in a diversified portfolio of stocks and bonds.
If you earn about $70,000 annually and invest 15% per year in an S&P 500 index fund averaging 10% annual returns, you could reach 2x your income in nine years and 7x in roughly 18 years. That’s enough to exceed the typical boomer’s savings before retirement age.
Apps like Acorns make this easier by rounding up your everyday purchases and investing the spare change into diversified portfolios. New users can start with as little as $5 per month and even earn a $20 bonus for joining. Consistent contributions to funds like VOO, which tracks the S&P 500, can steadily grow your nest egg over time.
Track, Plan, and Optimize Your Finances
For those who struggle to stay consistent, tools like Monarch Money offer an all-in-one platform for tracking investments, spending, and savings goals. With Plaid-secured data integration and multi-factor authentication, users can safely monitor their financial progress and plan retirement with confidence.
Monarch also provides personalized financial advice and a shared view for couples planning their future together. The app offers a seven-day free trial and 50% off the first year with the code MONARCHVIP.
Diversify Your Nest Egg with Alternative Assets
While consistency is key, diversification is what protects your savings. In addition to stocks and bonds, investors are increasingly turning to alternative assets like real estate, private equity, and gold.
Gold, in particular, has proven its resilience — with prices hitting a record $4,300 per ounce in mid-October. Investors often view it as a safe haven and hedge against inflation and market volatility.
Through companies like Goldco, investors can open a Gold IRA that combines precious metal investments with the tax advantages of retirement accounts. Goldco offers free shipping, educational resources, and even up to 10% of qualified purchases in free silver for new clients who invest at least $10,000.
Ultimately, building financial security doesn’t require extraordinary wealth — just discipline, diversification, and time. With the right strategy, today’s savers can outperform yesterday’s boomers and retire with confidence.
