Overview
- Recent data show large gaps in retirement savings: Fidelity reports average baby boomer 401(k) balances near $260,300 and average IRAs about $286,700.
- A 2025 Transamerica survey found the typical retiree household held roughly $126,000 in savings, illustrating that many will reach retirement with far less than headline targets.
- The 4% rule is a common quick test of sustainability: a $2 million nest egg would yield about $80,000 in the first year under that rule but that figure ignores taxes, inflation and future care costs.
- Whether $1 million or $2 million is enough depends on individual factors such as need for long-term care, early retirement and private health premiums, family support obligations, and holdings like a home or brokerage accounts.
- Financial advice across the coverage stresses tailored planning that combines multiple income streams, uses Social Security (about $25,000 a year on average) as part of the mix, keeps cash cushions for shocks, and monitors program risks such as Social Security funding pressures.