How Many Americans Are Ready for Retirement?

Many people think retirement will be easy once they stop working, but most are not prepared.

Key Findings

Fewer than half of Americans can maintain their current lifestyle post-retirement.
Gen Z workers (aged 24-28) are the best prepared, with nearly half having sufficient savings.
Millennials are slightly behind, with just over 40% ready.
Gen X and Baby Boomers are less prepared, though almost 90% of Baby Boomers own a home that could provide additional income.

Savings Goal: Aim for a nest egg that is 10-12 times your final salary.
Spending Goal: Plan to spend about 70-80% of your current expenses in retirement.
Early Savings: Start early to benefit from compounding interest.
Employer Plans: Those with a 401(k) or similar plan are twice as likely to meet their goals, thanks to employer contributions.

Cut Costs: Consider moving to a smaller home or a cheaper area.
Track Spending: Plan for changes in expenses, such as health care or travel.
Utilize Programs: Take advantage of programs like:
Medicare Savings Programs for health costs.
Low Income Home Energy Assistance Program for heating and cooling bills.
Other aid for housing, food, and more.
Part-Time Work: Working part-time in retirement can boost savings. In 2024, about one in five people aged 65 or older was working or looking for work.

If you’re not ready yet, consider these steps to improve your future security.