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

A new report shows that fewer than half of Americans can keep their current lifestyle after they stop working.  

The study looked at different age groups.  

Gen Z workers, aged 24‑28, are the best prepared: nearly half of them have enough savings to live comfortably in retirement.  

Millennials are slightly behind, with just over 40 % ready.  

Gen X and Baby Boomers are even less prepared, though almost 90 % of the latter own a home that could be sold or rented for extra income.  

What does it mean to be “ready”?  

It means having enough money saved so that, after retirement, you can spend about 70‑80 % of what you do now.  

Financial advisers suggest aiming for a retirement nest egg that is 10‑12 times your final salary.  

If you start saving early, the money grows faster thanks to compounding interest.  

People who have a 401(k) or similar plan are twice as likely to meet their goals.  

That’s because employers often match contributions, which is free money you shouldn’t miss.  

When retirement comes, many will need to cut costs.  

Moving to a smaller home or a cheaper area can help.  

You should track your current spending and plan for changes in expenses, like health care or travel.  

There are programs that can ease the financial load.  

Medicare Savings Programs cover part of health costs.  

The Low Income Home Energy Assistance Program helps with heating and cooling bills.  

Other aid covers housing, food, and more.  

Finally, 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.

How Many Americans Are Ready for Retirement?

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