Retirement Savings Shortfall: Baby Boomers Falling Behind on Nest Eggs

As of November 14, 2025, a new report reveals that many baby boomers, often described as the richest generation, are falling behind on their retirement savings. According to Fidelity, the average 401(k) balance among baby boomers, many of whom are already well into their retirement years, is $249,300, while the average IRA balance is $257,002.

These figures are well below the recommended levels of savings. Fidelity suggests retirees should aim to have 10 times their annual salary in savings by the time they hit 67 years old, which would amount to more than $660,000 for the median salary of $66,000 for Americans aged 55 to 65. However, a study by Northwestern Mutual found that only 29% of boomers said they had 10 times or more of their annual income saved for retirement, and 10% said they had less than one times their annual salary saved.

Even when considering other assets like real estate, which boomers are estimated to own $18 trillion to $19 trillion worth in the U.S., Fidelity still found that the median net worth of older Americans, those aged 65 to 74, was below what was needed to retire comfortably, sitting at about $410,000. This suggests that many baby boomers are struggling to meet their retirement savings goals and may face financial challenges in their golden years.