How Much Money The Average Baby Boomer Has In Emergency Savings

When something unexpected goes wrong — perhaps a surprise medical bill, a car repair you didn't expect, or a roof that suddenly needs to be replaced — it can be a real setback for your savings. These kinds of expenses often show up at the worst time, and they're rarely cheap. While it's a stressful situation for anyone to face, it can be especially tough for retirees living on a fixed income, which is why not having an emergency fund once you're near retirement is a mistake to avoid at all costs.
The good news for baby boomers, many of whom have already reached retirement age, is that they seem to be more prepared for contingencies than any other generation, with many having socked away a couple thousand dollars for emergencies.

According to Empower's 2025 Safety Net study, although 75% of Americans acknowledge the importance of having an emergency fund, nearly one-third have no money set aside for one. Boomers, however, seem to be a bit of an outlier with a median savings of $2,000 – four times the amount Gen Xers have saved and more than six times what millennials have stowed away. Even better for boomers, the study found that if faced with more than $10,000 in emergency expenses, the group overall believes the expense would be manageable. This has a lot to do with the extended duration boomers have had to save. "Boomers generally have had a longer time horizon to contribute to their safety net — multiple decades' worth of savings compared to less time for their younger counterparts", Keith Jones, senior financial professional with Empower, tells GOBankingRates.

Boomers' bigger emergency savings may also come down to the generation having a better understanding of how much money to have in an emergency fund. Jones of Empower says, "A true emergency fund is generally based on monthly expenses or income, with three to six months' worth of spending as a good rule of thumb." He adds, "With boomers being older, there is a good chance that their expenses and income are higher than those of younger generations, thus needing a larger emergency fund."

According to Bankrate's 2025 Annual Emergency Savings Report, the majority of boomers, aged 61 to 79, seem to be following the three-to-six-month rule. Per the report, 41% say they have enough money set aside to cover expenses for six months or longer, which may not be surprising as they also happen to be the generation raking in the most wealth. Other generations don't appear to be as successful at saving for longer durations. Among Gen Xers, only 20% could afford to stay afloat for a minimum of six months. Millennials are faring a bit better, with 25% reporting they could continue to cover their expenses that long, while only 10% of Gen Zers say they could handle it. Another 22% of boomers believe they could cover three to five months' worth. This is on par with Gen Xers, but higher than Millennials (16%) and Gen Zers (18%). Few boomers are ill-prepared to handle an emergency at any cost, with only 16% having no emergency funds at all — considerably lower than the other generations.