Most Peak Baby Boomers Don't Hit This Wealth Benchmark

According to a 2024 Alliance for Lifetime Income study, almost half of "Peak baby boomer" households, or those aged 61 to 65, are at risk of not sustaining their lifestyle during retirement. This subgroup is the largest wave of boomers and are largely already in, or are soon headed for, retirement. A major concern for this group? An inability to hit certain wealth benchmarks, like having assets above $500,000. In fact, almost two-thirds of peak boomers fail to meet this benchmark, with 52% having $250,000 or less in financial accumulation, and 14.6% having $500,000 or less. Given the fact that the median home price in mid-2025 was $410,800 (per Federal Reserve Bank of St. Louis), it would seem like many of these baby boomers essentially have little beyond the value of their home — not to mention ones who are renting or carrying offsetting debts.

Another consideration is understanding Social Security benefits. Namely, that the program was established as a support system and not as a total income replacement solution. This means most retirees can't fall back entirely on their benefits and instead must come up with what amounts to roughly half of their retirement income. With a semi-conservative 5% drawdown rate, if a retiree were to have $250,000 in retirement savings (not total assets), their available monthly cash would total just under $1,050 before factoring in any Social Security benefits. However, an analysis of Bureau of Labor Statistics data by Corebridge Financial found that the average retiree over 65 spent roughly $4,900 per month in 2024 – creating a dramatic rift between sustainable management and typical spending demands.

For older Americans already living an underfunded retirement, there are some options to consider. For example, a reverse mortgage can be a solution for retirees, as it allows you to extract capital from your home without forcing you to move or alter your living space by, say, renting out a spare bedroom. However, reverse mortgages come with important rules, like keeping the home as the borrower's primary residence for more than half the year, and maintaining insurance and tax compliance. However, you can get up to 60% of the value of your home (on home values up to the HECM mortgage limit, which is a little over $1.2 million in 2025) in a lump sum payout or even structure it as monthly retirement income payments to help with any financial strain you might be experiencing.

For savers younger than those in the peak baby boomer age group who are still working toward their retirement goals, other avenues exist. Savers who know they won't reach their savings targets might consider investing in an annuity product to help deliver consistent retirement income. Similarly, they might consider aggressively paying down their mortgage in order to improve the terms of any future reverse mortgage loan they might consider. Saving through enhanced pension schemes is also a viable solution. Many companies in America match at least a portion of your contributions into a 401(k) account. This can rapidly add to the principal balance of your retirement savings and even breathe new life into efforts to meet your savings goals.