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With the youngest baby boomers now 61 years old, much of the generation is already retired or approaching retirement. However, the data shows that many have inadequate savings and may struggle to maintain their standard of living.
In fact, some boomers saved so little that younger Americans could overtake them with just a few years of disciplined saving and investing.
Here’s a closer look at the financial health of boomers—and what it takes to get ahead on the path to financial freedom.
According to a 2025 Vanguard report, only the top 30% of income-earning baby boomers are ready for retirement (1).
Vanguard also found that middle-income earners expect to experience an annual spending shortfall of $5,000, or 13 percent of their total spending needs, in retirement.
This could bring about a significant change in lifestyle.
Meanwhile, a Northwestern Mutual survey found that the average “magic number” Americans say they will need for retirement is $1.26 million (2). With average savings and net worth well below that figure, it’s no surprise that the survey also found that 51 percent of Americans think it’s “somewhat or very likely” they’ll outlive their savings.
With limited resources, many boomers may be forced to take on debt, rely heavily on Social Security, downsize their lifestyle, or even return to work to maintain their quality of life.
But even if you’re a boomer, you still have time to take another course.
Read more: Warren Buffett used 8 solid, repeatable rules to turn $9,800 into a $150 billion fortune. Start using them today to get rich (and stay rich)’
Whatever your personal “magic number” for retirement is, starting early and being consistent can help you get there.
The average salary for a person between the ages of 55 and 64 is $1,322 per week or $68,744 per year, according to SmartAsset (3).
Fidelity recommends having 2x your salary by age 35, 4x by age 45 and 7x by age 55. To achieve these benchmarks, they suggest investing 15% of your pre-tax income in a diversified portfolio focused on growth and income.
For example, if you earned $70,000 and consistently saved 15% a year in a low-cost S&P 500 index fund — which has averaged about 10.4% annual returns since 1957 — you could save double your income in about nine years and 7 times your income in about 18 years.
If you’re not sure how to find an extra 15% of your retirement investment budget, consider starting with an automated investment platform like Acorns that can help you chip away at your spare cash.
By registering and connecting your bank account, Acorns automatically rounds up the price of your daily purchases to the nearest dollar and deposits the difference into a smart investment portfolio for you.
With consistent contributions to blue-chip ETFs like VOO, which tracks the S&P 500, Acorns ensures your money can grow steadily and your spare change can be a real contributor to your retirement fund.
But if saving your spare amount isn’t enough, Acorns also lets you set up recurring monthly portfolio contributions. The best part? If you sign up with just a $5 monthly deposit, Acorns will give you $20 to start your investment journey off on the right foot.
With consistent investments in these terms and an annual salary of $70,000, you could surpass the average boomer’s 401(k) balance of $249,300 in just over 12 years.
In short, consistency pays off – and you don’t have to be rich to build a secure retirement. If you want to reach your goal even faster, you can also cut costs.
One of the best ways to find room in your budget to invest more is to constantly track your savings and spending.
You can get a real-time picture of your finances with Rocket Money’s premium Net Worth feature.
You can link your accounts, including bank accounts, investments, retirement accounts, property, vehicles, and even manually added items like jewelry or collectibles, so you can see what you own versus what you owe, all in one place. Balances update automatically, giving you a clear picture of your financial progress without having to manage multiple spreadsheets.
Security is built in every step of the way, with bank-level 256-bit encryption and Plaid-powered connections, so your login information is never stored.
Rocket Money’s intuitive app offers a variety of free and premium tools. Free features include subscription tracking, bill reminders, credit scores, and budgeting basics, while premium features—like automatic savings, customizable dashboards, and more—make it easier to stay on top of your retirement contributions and overall financial goals.
Beyond budgeting and investing in the stock market, diversifying your retirement portfolio can better spread your risk across multiple assets. As a result, you can avoid stock market crashes from drastically reducing the value of your portfolio in the final years before you retire.
Alternative assets are one area that can provide some protection against a broader decline in stocks and bonds. This asset class includes real estate, private equity, cryptocurrencies, and the like.
But one alternative asset that has proven its resilience, particularly this year, is gold.
Gold prices reached an all-time high of $4,512 per ounce in December (4). Often this precious metal is seen as resistant to inflation and a “safe haven” investment from market turbulence.
You can take advantage of the commodity’s popularity and get tax advantages for retirement by investing in a self-directed gold IRA.
A gold IRA allows you to invest in gold and other precious metals in physical form while still providing the significant tax advantages of an IRA.
If you’re not sure where to start, you can check out some of Moneywise’s top picks for gold IRAs to compare your options for free. Keep in mind that gold is often best used as part of a well-diversified portfolio.
Real estate can be another high-growth avenue for retirement diversification. While not everyone has the capital to buy a rental property, you can now invest in property shares through Arrived.
Backed by world-class investors like Jeff Bezos, Arrived’s easy-to-use platform allows you to invest in parts of vacation and rental properties for as little as $100.
The real estate platform gives you access to SEC-qualified investment shares in rental homes and vacation rentals, curated and screened for their appreciation and income potential.
Arrived’s flexible investment amounts and streamlined process allow accredited and non-accredited investors to take advantage of this inflation-hedging asset class – without having to deal with the extra work that comes with ownership.
Mogul is a real estate investment platform offering fractional ownership in prime rental properties that provides investors with monthly rental income, real-time appreciation and tax benefits – without the need for a large down payment or 3am calls from tenants.
Founded by former Goldman Sachs real estate investors, the team handpicks the top 1% of single-family rental homes across the country for you. Simply put, you can invest in quality institutional offerings for a fraction of the usual cost.
Each property is subject to a vetting process, which requires a minimum return of 12% even in downside scenarios. Overall, the platform shows an average annual IRR of 18.8%. Their cash-on-cash returns, meanwhile, average between 10 and 12% annually. Listings often sell in less than three hours, with investments typically ranging from $15,000 to $40,000 per property.
Each investment is secured by real assets, which do not depend on the viability of the platform. Each property is held in a self-contained Propco LLC, so investors own the property, not the platform. Blockchain-based sharding adds a layer of security, ensuring a permanent and verifiable record of every stake.
Getting started is a quick and easy process. You can create an account and then browse the available properties. Once you verify your information with their team, you can invest like a mogul in just a few clicks.
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