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Baby boomers are often described as the richest generation —\u00a0raking in more wealth\u00a0than any other\u00a0generation<\/a>\u00a0in history. Much of their financial success can be attributed to a unique combination of factors during their prime wealth-generating years, including strong economic and stock market growth, along with more affordable housing that made it easier for them to build up equity in their homes. Considering this, you might assume boomers’ retirement accounts are bursting at the seams. But,\u00a0unfortunately for many in this generation, that’s not the case.<\/p>\n<\/p>\n According to Fidelity<\/a>, the average 401(k) balance among baby boomers \u2014 many of whom are already well into their retirement years \u2014 is $249,300, while the average IRA balance is $257,002. While needs in retirement vary greatly depending on your individual cost of living, these figures are well below most recommended levels of savings. Fidelity, for instance, suggests retirees aim to have 10 times their annual salary in savings by the time they hit 67 years old \u2014 and even more if they’re planning to retire early.\u00a0With the median salary of about $66,000 for Americans aged 55 to 65,\u00a0according to Q4 2024 data from the Bureau of Labor Statistics<\/a>,\u00a0that would amount to more than $660,000 in retirement savings.<\/p>\n According to a study conducted by Northwestern Mutual<\/a>, only 29% of boomers said they had 10 times or more of their annual income saved for retirement, and 10%\u00a0said they had less than one times their annual salary saved.\u00a0Plus, median amounts aside,\u00a0Americans reportedly believe they need $1.26 million to retire comfortably in 2025.<\/p>\n Read more: 11 Warning Signs You’re Not Financially Ready To Retire<\/a><\/p>\n It’s important to note that\u00a0retirement accounts are not the only assets for many retirees.\u00a0Many also have money socked away in brokerage or savings accounts, while many have other valuable assets such as businesses or real estate \u2014 all of which could help in funding their retirement. Real estate, in particular, should not be discounted. It’s estimated that boomers alone own $18 trillion to $19 trillion worth of real estate in the U.S. —\u00a0almost half of the country’s real estate wealth,\u00a0according to\u00a0Realtor.com<\/a>.\u00a0However, even taking into account these other assets, Fidelity<\/a> still found that the median net worth of older Americans, those\u00a0aged 65 to 74, was below what was needed to retire comfortably \u2014 with the median net worth sitting at about $410,000.<\/p>\n Also, if you’re an\u00a0upper-class retiree<\/a>, your net worth would need to be significantly higher since average upper-class retirees easily spend $8,000 or more per month<\/a> by the time they hit 83.\u00a0Morningstar<\/a>\u00a0estimates that, in order to be in this top net worth bracket, you would need between\u00a0$714,000 and $2.1 million in assets.\u00a0Based on these estimates, it’s not surprising that, according to Northwestern Mutual<\/a>, only 40% of boomers said it was likely they would outlive their retirement money, with 17% saying it was very likely and 23% saying it was somewhat likely. The study also found that among baby boomers who have yet to retire, many do not expect to be financially prepared \u2014 with 44% saying they do not expect to be ready when the time comes.<\/p>\n Unlock your financial potential. Add Money Digest to your preferred sources<\/a> for smart money insights!<\/p>\n Older man in red shirt using calculator – Dmytro Zinkevych\/Shutterstock <\/p>\n