Overview
- Fidelity reports baby boomers ended 2025 with an average 401(k) balance of $267,900, up 7% from late 2024 as many in the cohort near or enter retirement.
- Vanguard data highlight skewed savings: the average 401(k) for a 64-year-old is $271,320 but the median is just $95,642, with only the top 30% of boomers deemed retirement-ready and median earners facing about a $5,000 annual shortfall.
- Perception outpaces reality as Americans cite a $1.26 million “magic number” to retire comfortably, and Canadian couples say they need roughly $1.7 million, pointing to a wide gap with typical balances.
- Social Security remains a key income pillar with an average monthly benefit of about $2,071 as of January 2026, though current projections show program insolvency by 2032 that could trigger benefit cuts without policy changes.
- Recent guidance emphasizes preservation over accumulation, noting many retirees withdraw near 2% rather than the traditional 4% and increasingly consider annuities, lifestyle downsizing or part-time work to make savings last.