Even with over half of the nation’s household wealth, nearly half of Baby Boomers have saved less than $100,000 for retirement, a startling contradiction that frames a generation at a financial crossroads.
Key Takeaways
- As of 2023, 48% of Baby Boomers have saved less than $100,000 for retirement, highlighting widespread under-saving.
- The median retirement savings for Baby Boomers aged 60-69 is $232,710 as reported in 2022 Federal Reserve data.
- 56% of Baby Boomers report feeling behind on retirement savings according to a 2023 Northwestern Mutual study.
- 55% of Baby Boomers rely on Social Security as primary income source in retirement per SSA 2023.
- Average annual Social Security benefit for Baby Boomers retiring in 2023 is $23,500 per SSA.
- 23% of Baby Boomer retirees receive pensions averaging $18,000 yearly per 2022 Census.
- Medicare premiums deduct average $2,500 annually from Social Security for Boomers per CMS 2023.
- 70% of Baby Boomers live with at least one chronic condition per CDC 2023 data.
- Average out-of-pocket health costs for Baby Boomers in retirement total $315,000 per Fidelity 2023.
- 68% of Baby Boomers own their homes free and clear per Census 2022 housing data.
- Median home value for Baby Boomer households is $320,000 in 2023 per NAR.
- 12% of Baby Boomers live in senior housing communities per HUD 2023.
- 53% of Baby Boomers continue working past 65, with 25% full-time per BLS 2023.
- Gig economy participation by 36% of semi-retired Boomers averaging $20,000 income per Upwork 2023.
- 72% of Baby Boomers volunteer 4+ hours weekly in retirement per Corporation for National Service 2023.
Many Baby Boomers face underfunded retirements despite holding most household wealth.
Financial Preparation
- As of 2023, 48% of Baby Boomers have saved less than $100,000 for retirement, highlighting widespread under-saving.
- The median retirement savings for Baby Boomers aged 60-69 is $232,710 as reported in 2022 Federal Reserve data.
- 56% of Baby Boomers report feeling behind on retirement savings according to a 2023 Northwestern Mutual study.
- Average 401(k) balance for Baby Boomers is $232,710 per Vanguard's 2023 How America Saves report.
- 37% of Baby Boomers have no retirement savings at all per 2022 Gallup poll.
- Baby Boomers hold 52% of U.S. household wealth totaling $78 trillion in Q1 2023 per Federal Reserve.
- Only 29% of Baby Boomers are confident they have enough savings for a comfortable retirement per 2023 EBRI survey.
- Median net worth for Baby Boomer households is $1.06 million in 2022 Survey of Consumer Finances.
- 41% of Baby Boomers have delayed retirement due to insufficient savings per 2023 AARP study.
- Baby Boomers' average IRA balance is $199,300 as of 2023 Fidelity data.
- 63% of Baby Boomers worry about outliving their savings according to 2023 Allianz Life survey.
- Total retirement assets for Baby Boomers exceed $30 trillion in IRAs alone per 2023 ICI report.
- 35% of Baby Boomers have over $500,000 in retirement savings per 2023 Empower study.
- Baby Boomers' defined contribution plan balances average $112,000 per 2022 EBRI analysis.
- 27% of Baby Boomers aged 55-64 have zero retirement account balances per 2022 Census data.
- Baby Boomers represent 40% of households with retirement accounts holding median $200,000 per Fed SCF.
- 52% of non-retired Baby Boomers fear they won't have enough savings per 2023 Transamerica survey.
- Average Baby Boomer retirement savings gap is $423,000 per 2023 T. Rowe Price study.
- 44% of Baby Boomers have tapped retirement savings early due to emergencies per 2022 TIAA.
- Baby Boomers' total 401(k)/403(b) assets hit $7.5 trillion in 2023 per ICI.
- Only 24% of Baby Boomers have a detailed retirement savings plan per 2023 Schwab survey.
- Median savings for Baby Boomers nearing retirement (64-67) is $185,000 per 2023 Fidelity.
- 39% of Baby Boomers report savings below recommended 10x salary benchmark per 2022 Fidelity.
- Baby Boomers' home equity averages $300,000 contributing to net worth per 2023 NAR.
- 58% of Baby Boomers have less than $250,000 saved including all accounts per 2023 Bankrate.
- Total U.S. retirement savings held by Baby Boomers is $35 trillion per 2023 Cerulli Associates.
- 31% of Baby Boomers plan to work part-time in retirement due to savings shortfalls per AARP 2023.
- Average annual retirement savings contribution by Baby Boomers is $7,200 per Vanguard 2023.
- 46% of Baby Boomers regret not saving more aggressively earlier per 2023 Merrill Lynch.
- Baby Boomers' pension assets total $8.2 trillion as of 2023 DOL data.
Financial Preparation Interpretation
Despite controlling a colossal slice of America's wealth pie, a sobering portion of Baby Boomers are staring down their golden years with little more than the crumbs from the crust.
Health and Longevity
- Medicare premiums deduct average $2,500 annually from Social Security for Boomers per CMS 2023.
- 70% of Baby Boomers live with at least one chronic condition per CDC 2023 data.
- Average out-of-pocket health costs for Baby Boomers in retirement total $315,000 per Fidelity 2023.
- Life expectancy for Baby Boomers is 79 years for men and 83 for women per SSA 2023 tables.
- 52% of Baby Boomers have Medicare Supplement plans averaging $2,000 yearly premium per AHIP 2023.
- Dementia affects 11% of Baby Boomers over 65 costing $360,000 lifetime per Alzheimer's Assoc 2023.
- 28% of Baby Boomers smoke or have smoked, increasing health costs by 25% per CDC 2022.
- Average annual Medicare Part D drug costs for Boomers is $1,200 per CMS 2023.
- Obesity rates among Baby Boomers are 42%, linked to $1,900 extra yearly medical spend per Milken 2023.
- 65% of Baby Boomers have arthritis, driving $190 billion national costs per CDC 2023.
- Long-term care costs average $100,000 yearly for nursing home stays used by 49% of Boomers per HHS 2023.
- 37% of Baby Boomers report fair/poor health, doubling medical expenses per AARP 2023.
- Average longevity risk adds 2.5 years to planning horizon for Boomers per Society of Actuaries 2023.
- Diabetes prevalence in Baby Boomers is 27%, with $16,000 lifetime extra costs per ADA 2023.
- 55% of Baby Boomers delay preventive care, increasing future costs by 15% per Kaiser 2023.
- Heart disease affects 30% of Baby Boomers, primary cause of 25% of deaths per CDC 2023.
- Average dental costs for Boomers in retirement $1,500 yearly uncovered by Medicare per ADA 2023.
- 22% of Baby Boomers have hearing loss, with aids costing $4,700 per pair per NIH 2023.
- Cancer survival rates improved to 68% for Boomers, but treatment costs $150,000 avg per ACS 2023.
- 60% of Baby Boomers take 5+ medications daily, raising interaction risks per AARP Rx 2023.
- Vision impairment in 16% of Boomers costs $12,000 lifetime for cataracts/glasses per Prevent Blindness.
- Mental health issues like depression affect 15% of retired Boomers, $20 billion costs per SAMHSA 2023.
- 43% of Baby Boomers fall yearly, causing $50 billion medical bills per CDC STEADI 2023.
- Hospice use by Boomers rose 10% to 1.5 million in 2022 per NHPCO, averaging $10,000 cost.
- Sleep disorders in 50% of Boomers add $411 per person yearly healthcare per AASM 2023.
- 75% of Baby Boomers want to age in place but 40% need home mods costing $30,000 avg per AARP.
- COVID-19 vaccination rates 92% for Boomers reduced severe illness by 94% per CDC 2023.
Health and Longevity Interpretation
The golden years for Baby Boomers appear to be more of a bronze, gilded by a constant financial drip from health costs that their longer lives have ironically guaranteed.
Housing and Living
- 68% of Baby Boomers own their homes free and clear per Census 2022 housing data.
- Median home value for Baby Boomer households is $320,000 in 2023 per NAR.
- 12% of Baby Boomers live in senior housing communities per HUD 2023.
- Reverse mortgage usage by Boomers up 15% to 100,000 loans in 2023 per NRMLA.
- 85% of Baby Boomers plan to age in place with 55% needing modifications per AARP 2023.
- Average mortgage debt for Baby Boomer homeowners is $45,000 per Fed SCF 2022.
- 22% of Baby Boomers are homeowners with mortgages over $200,000 per Urban Institute 2023.
- Multi-generational living up 20% among Boomers to 18% of households per Pew 2023.
- Property taxes average $4,200 yearly for Boomer-owned homes per ATTOM 2023.
- 7% of Baby Boomers rent with median rent $1,500/month per Census ACS 2022.
- Home maintenance costs average $15,000 yearly for aging Boomer homes per Joint Center Harvard 2023.
- 35% of Baby Boomers downsized homes post-retirement per Redfin 2023 study.
- Assisted living costs $54,000 annually for 10% of Boomers considering it per Genworth 2023.
- 48% of Baby Boomer homes are valued over $500,000 in suburbs per Zillow 2023.
- Vacation/second homes owned by 14% of Boomers averaging $450,000 value per NAR 2023.
- HOA fees average $3,200 yearly for 25% of Boomer condo owners per Foundation 2023.
- 29% of Baby Boomers moved for retirement, 60% to lower-cost areas per U-Haul 2023.
- Energy costs for Boomer homes average $2,800 yearly, up 10% per EIA 2023.
- 16% of Baby Boomers co-habit with partners post-divorce for housing affordability per Pew.
- Flood insurance needed by 11% of coastal Boomer homes costing $1,500 avg per FEMA 2023.
- 62% of Baby Boomers prefer single-family homes for retirement living per NAHB 2023.
- Average square footage of Boomer homes is 2,200 sq ft per Census 2022.
- 41% of Baby Boomers have home equity lines totaling $100 billion per FRB NY 2023.
- Relocation to Sunbelt states by 45% of retiring Boomers per United Van Lines 2023.
- 9% of Baby Boomers homeless risk due to housing costs per HUD PIT 2023.
Housing and Living Interpretation
The Baby Boomers are stubbornly clinging to their large, paid-off houses like life rafts, even as the costs of maintenance, taxes, and reverse mortgages threaten to spring leaks in their retirement plans.
Income and Benefits
- 55% of Baby Boomers rely on Social Security as primary income source in retirement per SSA 2023.
- Average annual Social Security benefit for Baby Boomers retiring in 2023 is $23,500 per SSA.
- 23% of Baby Boomer retirees receive pensions averaging $18,000 yearly per 2022 Census.
- Median household income for Baby Boomer retirees is $52,000 in 2022 per BLS data.
- 67% of Baby Boomers expect Social Security to be major income source per 2023 Transamerica.
- Average pension income for Baby Boomers with DB plans is $12,400 annually per EBRI 2023.
- 41% of Baby Boomer households receive dividend/interest income averaging $4,200 per year per Fed SCF 2022.
- Social Security replaces 40% of pre-retirement income for average Baby Boomer per SSA 2023.
- 29% of Baby Boomers have annuities providing average $10,000 yearly income per 2023 LIMRA.
- Part-time work provides 15% of income for 28% of retired Baby Boomers per AARP 2023.
- Average withdrawal rate from savings for Baby Boomers is 4.2% annually per Vanguard 2023.
- 62% of Baby Boomers overestimate Social Security benefits by 20% per 2023 Nationwide.
- Rental income averages $8,500 per year for 12% of Baby Boomer retirees per Census 2022.
- Combined Social Security and pension covers 60% of expenses for 35% of Boomers per EBRI.
- Average SSI supplemental income for low-income Baby Boomers is $9,000 yearly per SSA.
- 51% of Baby Boomers plan withdrawals from taxable accounts first per 2023 Fidelity.
- Veteran benefits provide average $15,000 annually to 8% of Baby Boomer vets per VA 2023.
- 73% of Baby Boomers claim Social Security at full retirement age (67) per SSA 2023 data.
- Average gap between expected and actual retirement income for Boomers is 25% per TIAA 2022.
- 19% of Baby Boomer income comes from spousal benefits per SSA OASI 2023.
- Home equity withdrawals via reverse mortgages average $150,000 for 5% of Boomers per NRMLA 2023.
- 45% of Baby Boomers have long-term care insurance covering potential income needs per 2023 AALTCI.
- Average disability income for pre-retiree Boomers is $14,200 per year per BLS 2022.
- 38% of Baby Boomers report income below poverty line risk in retirement per Urban Institute 2023.
- Royalty/severance income averages $6,000 yearly for 3% of Boomer retirees per IRS SOI 2022.
- 64% of Baby Boomers anticipate needing supplemental income streams per 2023 BlackRock.
Income and Benefits Interpretation
For a generation that once believed in rock-solid retirement plans, Baby Boomers are now walking a financial tightrope woven from modest Social Security checks, a shrinking safety net of pensions, and a patchwork of side hustles that collectively whisper, "This wasn't exactly the brochure."
Work and Lifestyle
- 53% of Baby Boomers continue working past 65, with 25% full-time per BLS 2023.
- Gig economy participation by 36% of semi-retired Boomers averaging $20,000 income per Upwork 2023.
- 72% of Baby Boomers volunteer 4+ hours weekly in retirement per Corporation for National Service 2023.
- Travel spending by retired Boomers averages $6,000 yearly per AARP Travel 2023.
- 28% of Baby Boomers start new businesses post-65 per Kauffman Foundation 2023.
- Leisure activities cost Boomers $4,500 annually including golf/hobbies per BLS CE 2023.
- 65% of Baby Boomers use social media daily for connection per Pew 2023.
- Average retirement age for Baby Boomers is 64.6 years per Gallup 2023 poll.
- 44% of Boomers pursue second careers in consulting/education per Encore.org 2023.
- Dining out expenses for Boomers $3,200 yearly per Nielsen 2023.
- 59% of Baby Boomers garden/spend on home improvements $2,000 avg per BHG 2023.
- Pet ownership by 68% of Boomers costing $1,500 yearly per APPA 2023.
- 31% of Baby Boomers take online classes for hobbies per Coursera 2023 data.
- Entertainment streaming subscriptions average 4 per Boomer household $600/year per Deloitte 2023.
- 76% of Baby Boomers prioritize family time with 50% hosting grandkids weekly per Hallmark 2023.
- Fitness club memberships held by 22% of Boomers at $500 avg annual fee per IHRSA 2023.
- 47% of retired Boomers report high life satisfaction per Gallup World Poll 2023.
- Charitable giving by Boomers averages $2,900 yearly per Giving USA 2023.
- 33% of Baby Boomers relocate to warmer climates for lifestyle per Realtor.com 2023.
- Average daily screen time for Boomers 7 hours including news/TV per eMarketer 2023.
- 25% of Boomers join local clubs/sports leagues post-retirement per Meetup 2023.
- Grocery/entertainment budget for Boomers $9,000 yearly per USDA 2023.
- 61% of Baby Boomers read books daily averaging 20/year per Pew Reading 2023.
- Arts/cultural events attendance by 40% of Boomers 6 times/year per NEA 2023.
- 19% of Baby Boomers adopt new tech like smart homes for lifestyle ease per Parks Assoc 2023.
- Happiness index for retired Boomers 7.2/10 vs 6.8 working per World Happiness Report 2023.
Work and Lifestyle Interpretation
Today's retirees are not quietly fading into a life of bingo and early bird specials but are instead orchestrating a vibrant encore, trading boardrooms for volunteering, cubicles for consulting, and traditional exits for a new script filled with passion projects, side gigs, grandkids, and global adventures—all while masterfully curating a life that proves happiness isn't a benefit of stopping work, but of starting a new, more fulfilling chapter.
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