Boomers average $525,000 in savings but fall short of the $1.6 million target needed for comfortable retirement.
Baby Boomers hold an average $525,000 across 401(k) and IRA accounts, according to recent retirement data. This total combines Fidelity’s reported averages of $267,900 in 401(k) balances and $257,002 in IRAs, reflecting substantial but insufficient savings.
The shortfall emerges against a $1.6 million retirement target identified in Schwab’s 2025 survey, leaving a $1 million gap per household. Gen X faces a tighter squeeze, with average 401(k) balances of $215,600 and 26% carrying outstanding loans, further limiting their savings runway.
Social Security replaces only 40% of pre-retirement income, pressuring both cohorts to extend work years or adjust retirement expectations. The disparity underscores broader savings challenges as younger generations confront shorter timelines to close gaps.