Since Baby Boomers are between 62 and 80, many have retired. Others are close to leaving the workforce.
Retirement is a time when seniors typically rely on their 401(k) plan. So, how are Baby Boomers doing when it comes to that plan? Do they have enough to live on comfortably?
You can check out what the typical Boomer has in retirement savings so you can see how seniors are faring -- and determine if you have more or less than most.
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How much money do Baby Boomers have in their 401(k) plans?
According to Fidelity, here are the average 401(k) balances for Baby Boomers, as well as for their younger peers:
- Baby boomers: $267,900
- Gen X: $217,900
- Millennials: $80,700
- Gen Z: $17,000
While it is true that Baby Boomers have more in their retirement plans than younger people, a 401(k) balance of $267,000 isn't a ton of money.
In fact, with this amount in their 401(k), a Boomer who followed the 4% rule would have $10,716.00 in annual income from savings to live on. Even when you combine that with Social Security, that may not be enough to cover the basics, much less any luxuries.
How does your 401(k) compare to the average Baby Boomer's?
If you are a Baby Boomer, hopefully you have a 401(k) balance that's higher than average. If you don't, it could pay to put off retirement if you haven't left work yet. You could try to invest more to make your future retirement planning easier by giving you more wiggle room.
If you aren't a Boomer and have more time to save for retirement, these numbers should inspire you to act. You don't want to get into your 60s and 70s with so little, so start investing as much as you can for your future today so you can have a much larger nest egg than the typical Boomer -- and enjoy the financial security you deserve.
