This is how much the average employed baby boomer has saved for retirement. How do you stack up?

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With the youngest baby boomers now 61, much of the generation is already retired or nearing retirement. However, data shows many have inadequate savings and may struggle to maintain their standard of living.

In fact, some boomers have saved so little that younger Americans could surpass them with just a few years of disciplined saving and investing.

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Here’s a closer look at the boomers’ financial state — 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 median-income individuals are expected to experience an annual spending shortfall of $5,000, or 13% of their overall spending needs, in retirement.

That could make for 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 51% of Americans think it’s “somewhat or very likely” they will outlive their savings.

With limited resources, many boomers may be forced to take on debt, rely heavily on Social Security, cut back their lifestyles or even return to work to maintain their quality of life.

But even if you’re a boomer, there’s still time to chart a different course.

Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)’

Whatever your personal “magic number” for retirement may be, starting early and staying consistent can help you get there.

The median salary for someone aged 55 to 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 45 and 7x by 55. To hit these milestones, they suggest investing 15% of your pretax income into a diversified portfolio focused on growth and income.

For example, if you earned $70,000 and consistently saved 15% per 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 around nine years and 7x your income in about 18 years.

If you’re not sure how to find an extra 15% in your budget for retirement investments, consider starting small with an automated investing platform like Acorns, which can help you squirrel away your spare change.

By signing up and linking your bank account, Acorns automatically rounds up the price of everyday 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 contribution to your retirement fund.

But if saving your spare change isn’t enough, Acorns also lets you set up recurring monthly contributions for your portfolio. The best part? If you sign up with just a $5 monthly deposit Acorns will give you $20 to get your investment journey off on the right foot.

With consistent investment on 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 need to be wealthy to build a secure retirement. If you want to reach your target even faster, you can also cut back on costs.

One of the best ways to find room in your budget to invest more is to consistently track your saving and spending.

You can get a real-time snapshot 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 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 at every step with bank-level 256-bit encryption and Plaid-powered connections, so your login info 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 automated 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 dips in the stock market from drastically reducing your portfolio’s worth in the last years before you retire.

Alternative assets are one area that can provide some protection against a broader downturn in stocks and bonds. This asset class includes real estate, private equity, cryptocurrency and the like.

But one alternative asset that’s proven its resilience, especially this year, is gold.

Gold prices reached historic highs of $4,512 per ounce in December (4). Often, this precious metal is seen as inflation-resistant and a “safe haven” investment from market turmoil.

You could leverage the commodity’s popularity, and get tax advantages for retirement to boot, 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 also 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. Just keep in mind that gold is often best used as one part of a well-diversified portfolio.

Real estate can be another high-growth avenue for diversifying your retirement. While not everyone has the capital to buy a rental property outright, you can now invest in shares of properties through Arrived.

Backed by world class investors like Jeff Bezos, Arrived’s easy-to-use platform allows you to invest in shares of vacation and rental properties for a mere $100 minimum.

The real estate platform offers you access to shares of SEC-qualified investments in rental homes and vacation rentals, curated and vetted for their appreciation and income potential.

Arrived’s flexible investment amounts and simplified process allows accredited and non-accredited investors to take advantage of this inflation-hedging asset class — without having to deal with any of the extra work that comes along with being a landlord.

Mogul is a real estate investment platform offering fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 a.m. tenant calls.

Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional quality offerings for a fraction of the usual cost.

Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10 to 12% annually. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.

Every investment is secured by real assets, not dependent on the platform’s viability. Each property is held in a standalone Propco LLC, so investors own the property — not the platform. Blockchain-based fractionalization adds a layer of safety, ensuring a permanent, verifiable record of each stake.

Getting started is a quick and easy process. You can sign up for an account and then browse 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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We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Vanguard (1); Northwestern Mutual (2); SmartAsset (3) APMEX (4)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.