Two-Thirds of 30 Million Boomers Nearing 65 Lack Retirement Savings

3 articles · Updated · Fortune · Jun 7

About 30 million Baby Boomers will turn 65 between 2024 and 2030, and two-thirds are not financially prepared to maintain their pre-retirement lifestyles, according to ALI Retirement Income Institute analysis.
More than half have $250,000 or less saved, while Vanguard found only about 40% of workers in their early 60s are on track for retirement and the typical near-retiree faces a 24% income gap—about $9,000 a year.
Longer lifespans and rising costs are worsening the shortfall: a healthy 60-year-old woman now has better than a 50% chance of reaching 90, while assisted living can cost around $10,000 a month.
That financial pressure is helping keep older Americans in jobs and in large homes, with empty-nest boomers owning 28% of U.S. homes with three or more bedrooms and many reluctant to move because low-rate mortgages or mortgage-free ownership make downsizing more expensive.
The report argues the strain is structural as much as generational: pensions gave way to 401(k)s, healthcare and housing costs surged, and wealth among older Americans remains highly unequal.

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Two-Thirds of Peak Boomers Face Retirement Insecurity: The 2024-2030 Crisis and What’s Next for America

Overview

Between 2024 and 2030, Peak Boomers—those turning 65—are entering retirement, raising urgent concerns about their financial readiness. Most lack access to traditional defined benefit pensions, with only 24% covered as of 2022, leaving a significant gap in retirement security. As a result, the majority must rely on personal savings and other sources, which are often less stable. Even among those with pensions, public plans offer higher median benefits than private ones, leading to varied levels of financial security. This situation highlights widespread vulnerability and the need for new solutions to support retiring Boomers.

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