Despite decades of work, millions of baby boomers are entering retirement unprepared. New data from 2025 reveals a troubling gap between what boomers think they need for retirement and what they’ve actually saved. If you’re between the ages of 60 and 75, it’s time to take a hard look at your retirement strategy.
Key 2025 Retirement Statistics for Baby Boomers
- 41% of baby boomers say Social Security will be their primary source of income. 1
- The average retirement savings for Americans aged 65+ is $279,997, far below the $1.8 million many believe they’ll need to retire comfortably 2
- Almost half of baby boomers have no formal retirement plan, and 40% are delaying retirement due to inflation 3
- 48% of retirees fear they’ll outlive their savings. 4
- More than 40% of boomers have no retirement savings at all. 5
Healthcare Costs Alone Could Drain Your Nest Egg
Experts estimate that healthcare expenses in retirement will exceed $300,000 for the average couple 6
Yet, many boomers still believe they’ll need less than $1 million total for retirement—an outdated and dangerous assumption. 7
Retirement Knowledge Gap: What Boomers Don’t Know
- Nearly 50% of baby boomers are unaware of financial products that offer guaranteed lifetime income, such as fixed indexed annuities 8
- Many overestimate their Social Security benefits by $500/month, which could lead to a $250,000 shortfall over a 30-year retirement 9
Real People, Real Gaps: What We Found on the Street
When asked basic retirement questions, most boomers struggled to answer correctly. Even when offered a hypothetical $20,000 gift, 40% said they’d spend it on travel or a new car—not retirement savings. 10
What You Can Do Now
- Use a Retirement Calculator to estimate how much you’ll need.
- Explore income-generating products like fixed indexed annuities that offer guaranteed lifetime income.
- Get educated on Social Security, healthcare costs, and inflation.
- Create a formal retirement plan—it’s never too late to start.
Pro Tip: Fixed indexed annuities can provide stable, tax-deferred growth and income you can’t outlive. Just be sure to understand surrender charges and contract terms.
A Fixed Indexed Annuity (FIA) is usually a fixed annuity whose interest is determined, at least in part, by the performance of a specified index of the market. Unlike traditional fixed annuities, the policy owner may receive zero interest for a single period on a specific premium payment if the index performs poorly. However, with most designs, the premiums are protected and guaranteed to grow over time, and the owner of a fixed indexed annuity may experience better interest crediting than a traditional fixed annuity during periods when the market performs well. Indexed annuities do not directly participate in any stock or equity investments. An investment cannot be made directly into an index. Most FIAs permit owners to participate in only a stated percentage of an increase in an index, and also impose a “cap rate” that represents the maximum annual account value percentage increase allowed to contract owners. Because they are meant for long-term accumulation, most annuities have surrender charges that are assessed during the early years of the contract if the contract owner surrenders the annuity. In addition, withdrawals prior to age 59 ½ may be subject to a 10% Federal Tax Penalty. The guarantees of annuity contracts are contingent on the claims-paying ability of the issuing insurance company. All withdrawals from an annuity purchased with non-qualified monies are taxable as ordinary income only to the extent there is a gain in the policy. Riders are optional, available at additional cost, and may not be available in all states. Assuming no withdrawals made during the surrender charge period and no rider charges. Rider charges continue to be deducted regardless of whether interest is credited. This is not a solicitation of any specific annuity contract.
TC8190209(0825)3
1 National Institute on Retirement Security
2 SaltMoney.org
3 Unbiased: Baby boomer retirement statistics: how will the baby boomer retirement crisis affect the economy?
4 Center for Retirement Research at Boston College: Half of Retirees Afraid to Use Savings
5 USA Facts
6 Employee Benefit Research Institute. Spending in Retirement: By the Numbers 2022.
7 Center for Retirement Research at Boston College. What Happened to Late Boomers’ Retirement Wealth?
8 Social Security Administration. The Disappearing Defined Benefit Pension and Its Potential Impact on the Retirement Incomes of Baby Boomers.
9 Center for Retirement Research at Boston College. Workers Overestimate their Social Security.
10 U.S. Bureau of Labor Statistics A Closer Look at Spending Patterns of Older Americans