The current household savings in all retirement accounts among Baby Boomer workers is $147,000 (estimated median). It should be noted that many Baby Boomers were already mid-career when 401(k) plans were first introduced. Therefore, they have not had a full 40-year time horizon to save in 401(k) plans.
The 17th Annual Transamerica Retirement Survey finds that 45 percent of Baby Boomers are expecting a decrease in their standard of living when they retire, 83 percent of Generation X workers believe that their generation will have a harder time achieving financial security than their parents’ generation, and just 18 percent of Millennials are very confident about their future retirement. Approximately half of workers across all three generations plan to work at least part-time during their retirement. This vision of working during retirement is changing the landscape of retirement.