Even Baby Boomers Fall Short of Retirement Savings Goals

A new report from financial services corporation Fidelity reveals how Americans have been doing when it comes to building their nest eggs for retirement.

With many consumers facing more immediate monetary pressures in 2026, putting money aside for retirement may be at the bottom of a person’s financial to-do list. And people with bad credit may have to travel down an even tougher road to reach their savings goals for retirement.

Fidelity took a look at the average 401(k) and IRA balances of people of different ages to form its report. Some people may keep their retirement funds in a savings account, a certificate of deposit, or outside traditional retirement accounts.

But by examining balances on accounts designed for retirement savings — such as a 401(k) or IRA — Fidelity is helping people gain insight into how they’re measuring up against their peers.

The Fidelity report highlights both good and bad points about those who plan on retiring one day. The positive news is that people are putting aside money for their golden years. And with stock market indexes gaining value in recent years, many people have seen their balances rise.

On the other hand, the amount of cash people have been squirreling away may not be enough to allow them to live in the style they want to once they join the ranks of the retired.

Baby Boomers Lead in Retirement Balances

Fidelity reports Baby Boomers have an average 401(k) balance of $260,300 and an average IRA balance of $286,700 — roughly $547,000 across the two account types. Averages can be skewed by high-balance savers, so many Americans in this age group likely have less saved than these figures suggest.

But it makes sense that Baby Boomers would have the biggest balances in their retirement accounts as they’ve had longer runways to save and let their investments grow.

But even that rough $547,000 total may fall short of what many Americans believe they need to enjoy a financially stable retirement. Northwestern Mutual found Americans say they need $1.46 million, on average, to retire comfortably in 2026.

The $1.46 million figure is for all adults in the U.S. Northwestern Mutual reports that people with high net worth believe they’ll need to put aside at least $2.67 million, on average, to have a comfortable retirement.

The average amount Baby Boomers have saved in their retirement accounts, according to Fidelity, is well below the numbers in the Northwestern Mutual study.

The average retirement savings for other generations are even lower than those for Baby Boomers. Fidelity reports Gen X has an average 401(k) balance of $215,600 and an average IRA balance of $118,700 — roughly $334,000 across the two account types.

Meanwhile, Millennials average $82,600 in 401(k)s and $26,700 in IRAs, while Gen Z averages $18,000 in 401(k)s and $8,000 in IRAs.

Though these younger generations have lower overall balances, time is on their side. Depending on which way the market goes in the future, these groups may still hit their target retirement amounts before they leave the workforce for good.

Social Security Adds More Uncertainty

Saving for retirement can be a challenge for anyone. But it can be especially difficult for people with poor credit. Those who don’t have excellent or even good credit often pay higher interest rates on credit cards and loans, leaving them with less money to regularly contribute to their retirement accounts.

For borrowers carrying high-interest credit card debt, retirement savings may lose out to more urgent monthly payments. Even a consumer with a relatively small amount of revolving debt may find that it eats away at the amount they could otherwise set aside for retirement accounts.

People who plan on retiring in the near future may not be able to rely on Social Security to the extent they once thought they could. NPR recently reported that Social Security’s retirement trust fund is projected to be depleted in late 2032.

Social Security benefits may decrease in the near future if a trust fund that helps pay them runs out of money.

If Congress does not act, the program would be able to pay about 78% of scheduled benefits, implying a roughly 22% cut, the report indicated. Of course, lawmakers could always step in with changes that protect the amount seniors see in Social Security benefits.

But consumers who are concerned about their financial future can always take matters into their own hands to prepare for a more secure retirement.

Workers who haven’t started saving for retirement should start doing so as soon as they can. Even workers who cannot contribute much may benefit from starting small, especially if their employer offers a 401(k) match.

Consumers should also regularly review their retirement goals to ensure that they’re on track to reach them. With a little careful planning and discipline, even people with bad credit can take steps to create a more secure future for themselves and their families.