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The youngest of the baby boomers are now 61, and most of this generation are retired or close to retirement. However, data shows that many people are not saving enough and may struggle to maintain their standard of living.
In fact, some baby boomers have saved so little that younger Americans can surpass them with just a few years of disciplined saving and investing.
Here’s a closer look at baby boomer finances and what you can do to make progress on the road to financial freedom.
According to a 2025 Vanguard report, only the top 30% of baby boomers are ready to retire (1).
Vanguard also found that middle-income people can expect to have a spending shortfall of $5,000 per year in retirement, accounting for 13% of their overall spending needs.
This can lead to significant lifestyle changes.
Meanwhile, a Northwestern Mutual survey found that Americans say the average “magic number” they need to retire is $1.26 million(2). With average savings and net worth well below this figure, it’s no surprise that the survey also found that 51% of Americans believe it’s “somewhat or very likely” they will exhaust their savings.
With limited resources, many baby boomers may be forced to take on debt, rely heavily on Social Security, reduce their lifestyles, or even return to work to maintain their quality of life.
But even if you’re a baby boomer, there’s still time to chart a different course.
Learn more: Warren Buffett turned $9,800 into a $150B fortune using 8 solid, repeatable money rules. Start using them to get rich (and stay rich) today.”
No matter what your personal retirement “magic number” is, starting early and being consistent can help you achieve it.
According to SmartAsset (3), the average salary for people aged 55 to 64 is $1,322 per week or $68,744 per year.
Fidelity recommends increasing your salary to 2x at age 35, 4x at age 45, and 7x at age 55. To achieve these milestones, they recommend investing 15% of your pre-tax income in a diversified portfolio focused on growth and income.
For example, if you make $70,000 and consistently save 15% per year in a low-cost S&P 500 index fund (which has averaged annual returns of about 10.4% since 1957), you could double your income in about 9 years and 7x your income in about 18 years.
If you’re not sure how to find that extra 15% in your budget for retirement investing, consider starting small with an automated investing platform like Acorns, which can help you stash away any extra change.
By signing up and linking your bank account, Acorns automatically rounds the price of everyday purchases to the nearest dollar and deposits the difference into your Smart Portfolio.
Through ongoing contributions to blue-chip ETFs like VOO, which tracks the S&P 500, Acorns ensures your money grows steadily while your spare change can make a real contribution to your retirement fund.
But if saving your spare change isn’t enough, Acorns also lets you set up regular monthly contributions to your portfolio. The best part? If you deposit just $5 per month when you sign up, Acorns will give you $20 to get your investing journey off the ground.
If you invest consistently under these terms and earn an annual salary of $70,000, you could surpass the average baby boomer 401(k) balance of $249,300 in a little over 12 years.
In short, persistence pays off—and you don’t need to be rich to build a secure retirement. You can also cut costs if you want to reach your goals faster.
One of the best ways to find room in your budget to invest more is to keep track of your savings and spending.
You can get a real-time snapshot of your financial health with Rocket Money’s Advanced Net Worth feature.
You can link your accounts, including bank accounts, investments, retirement accounts, property, vehicles, and even manually added items like jewelry or collectibles, so you can see what you own and what you’re owed in one place. Balances update automatically, giving you a clear view of your financial progress without having to manage multiple spreadsheets.
Security is built into every step with bank-grade 256-bit encryption and Plaid-powered connections, so your login information is never stored.
Rocket Money’s intuitive app offers a variety of free and premium tools. Free features include subscription tracking, bill reminders, credit scores and budgeting basics, while premium features like automated savings, customizable dashboards and more make it easier to stay on top of your super contributions and overall financial goals.
In addition to budgeting and investing in the stock market, diversifying your retirement portfolio can better spread your risk across a variety of assets. As a result, you can avoid stock market declines in the final years before retirement that can significantly reduce the value of your portfolio.
Alternative assets are one area that could offer some protection from a broader downturn in stocks and bonds. This asset class includes real estate, private equity, cryptocurrencies, and more.
But gold is an alternative asset that has proven its resilience, especially this year.
Gold prices hit an all-time high of $4,512 per ounce in December (4). Typically, the precious metal is viewed as a “safe haven” investment to protect against inflation and market volatility.
You can take advantage of the commodity’s popularity and reap the tax benefits in retirement by investing in a self-directed gold IRA.
A gold IRA allows you to invest in gold and other precious metals in physical form while also providing the significant tax advantages of an IRA.
If you’re not sure where to start, you can check out some of Moneywise’s top picks for gold IRAs to compare your options for free. Keep in mind that gold is generally best used as part of a diversified portfolio.
Real estate can be another high-growth avenue for retirement diversification. While not everyone has the capital to purchase a rental property outright, you can now invest in property shares through Arrived.
Backed by world-class investors like Jeff Bezos, Arrived’s easy-to-use platform allows you to invest in vacation and rental property stocks for as little as $100.
This real estate platform provides you with SEC-qualified rental homes and vacation rental investment stocks, curated and reviewed based on their appreciation and income potential.
Arrived’s flexible investment amounts and streamlined process allow both accredited and non-accredited investors to take advantage of this inflation-hedged asset class without having to deal with any of the extra work that comes with being a landlord.
Mogul is a real estate investment platform that offers fractional ownership of blue-chip rental properties, providing investors with monthly rental income, real-time appreciation and tax benefits without having to pay a large down payment or make 3am calls to tenants.
Founded by former Goldman Sachs real estate investors, the team handpicks the top 1% of single-family rentals in the country for you. Simply put, you can invest in institutional quality products at a fraction of the usual cost.
Each property goes through a vetting process that requires a minimum return of 12% even in adverse circumstances. Overall, the platform’s average annual IRR is 18.8%. At the same time, their cash yields average between 10% and 12% per year. Products typically sell out within three hours, and investments typically range from $15,000 to $40,000 per property.
Each investment is secured by real assets and is not dependent on the viability of the platform. Each property is held by a separate Propco LLC, so investors own the property, not the platform. Blockchain-based fragmentation adds a layer of security, ensuring that every stake has a permanent, verifiable record.
Getting started is a quick and easy process. You can register for an account and browse available properties. Once you verify your information with their team, you can invest like a tycoon in just a few clicks.
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