--- title: Are You on Track for Retirement? Here's How Much People in Your Generation Are Saving Now description: Overall, Americans only have about 78% of the income needed for retirement. But the current savings rates of various age groups vary widely. authors: - name: Mary Ellen Cagnassola role: Reporter url: https://money.com/author/mary-ellen-cagnassola/ bio: Mary Ellen (M.E.) Cagnassola is a former reporter at Money, where she covered Social Security, retirement, housing, and employment. Her work reflects her commitment to service and equity in consumer finance. education: Rutgers University, BA Journalism at_money_since: 2021 articles: 205 covers: - Personal Finance - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Pets - Professional Services - Retirement - Shopping - Taxes former_staff: true published: '2023-03-23T18:14:45.000Z' modified: '2024-04-17T13:05:56.000Z' section: Personal Finance tags: - News word_count: 581 canonical: https://money.com/retirement-savings-by-generation/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Collage of people in different age group doing calculations](https://img.money.com/2023/03/News-Different-Generations-save-retirement.jpg) Americans are less ready for retirement than they were three years ago, according to new data revealing that savers are falling behind on [preparing for the future](https://money.com/save-for-retirement/). Fidelity’s latest [retirement score report](https://preview.thenewsmarket.com/Previews/FINP/DocumentAssets/638914.pdf) found that the overall U.S. retirement score — a measure of whether people are on track to meet their financial needs in retirement — declined five points from the record high of 83 recorded in 2020. As a result of the [economic environment](https://money.com/recession-poll-saving-money/), people are saving less and opting to invest conservatively, resulting in a shortage of funds that could impact them later on. More than half of survey respondents may need to make lifestyle changes to cover their [expenses in retirement](https://money.com/retirement-income-projections-trick/). That's truer for some more than others: Even though Fidelity found that asset balances have increased by $40,000 across generations, the current savings rates of various age groups vary widely. The research is based on responses from more than 3,500 working households that earn at least $25,000 a year and have begun saving for retirement. - [Savings rates decreased](https://money.com/savings-boom-over-inflation/) for millennials, falling 0.2% to to 9.5% for people born between 1981 and 1986. - Boomers — those born between 1946 and 1964 — decreased their savings rate by 2.2%, also sliding to 9.5%. - Bucking the trend was Gen X, or folks born between 1965 and 1980, which saw its savings rate increase to 11.1%. That's a 1.4% jump. - One thing all the generations have in common? Their typical savings rate is still lower than the recommended income contribution rate of 15%. Retirement costs are difficult to pinpoint because each person's financial situation is different, but [previous research](https://money.com/comfortable-retirement-cost-expectations/) has shown that savers believe they’ll need $1.25 million in order to retire comfortably. According to Fidelity, Americans today only have about 78% of the income they’ll require to cover their household expenses in retirement. ## The takeaway Retirement savings struggles are [nothing new](https://money.com/how-long-retirement-lasts-survey/) for working Americans, but thanks to the [inflationary period](https://money.com/people-stopped-saving-for-retirement-inflation/) we’re in, Fidelity found many are [pulling back](https://money.com/inflation-obstacle-retirement/) on saving even more than they were three years ago. To combat that, employees may want to consider taking advantage of employer retirement savings plans, especially if their workplace offers a [401(k)](https://money.com/what-is-a-401k-rollover/) match. But experts say the most important thing is that workers start saving as soon as possible. Even if they can’t contribute the recommended 15% to 20% of their income, something is better than nothing. “When it comes to long-term investing, staying focused on your individual goals is critical,” Rita Assaf, vice president of retirement at Fidelity Investments, said in a news release. “Having a plan in place is one solid way to help weather any storm, as we’ve seen the last few years and weeks with the pandemic, inflation and [market volatility](https://money.com/stock-market-volatility-frequency-2022/).” For younger savers who have time on their side, [Roth IRAs](https://money.com/understanding-roth-iras/) may be a good option because they grow tax-free. That could mean decades of untaxed income during retirement if workers invest early. People approaching their retirement years may also want to [delay claiming Social Security](https://money.com/wait-collect-social-security-extra-benefits/) because benefits increase each month they go unclaimed until recipients reach age 70. Generally, though, focusing on contributing as much income as possible to your accounts — and having a good grasp on what you'll need for retirement — will take you far. [You're Probably Wrong About How You'll Pay for Retirement](https://money.com/retirement-income-sources/) [How to Save for Retirement Even When You're in Your 20s and Broke](https://money.com/retirement-savings-for-20s/) [How Long Does Retirement Last? Many Americans Don't Know](https://money.com/how-long-retirement-lasts-survey/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/retirement-savings-by-generation/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Personal Finance", "item": "https://money.com/personal-finance/" }, { "@type": "ListItem", "position": 3, "name": "Saving Money", "item": "https://money.com/saving-money/" }, { "@type": "ListItem", "position": 4, "name": "Are You on Track for Retirement? 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