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As popular New Year’s resolutions spur Americans to take stock of their finances, you may be feeling regret when it comes to your retirement savings.
Don't worry; you're far from alone. An analysis released Tuesday by insurance firm Nationwide highlights that Gen Xers and baby boomers, in particular, wish they had started saving for retirement at an earlier age.
Some 85% of respondents 45 or older wish they had contributed to a retirement plan sooner, according to a Nationwide survey in August.
It’s one advantage younger folks today have over their older counterparts. The typical age at which Gen Xers and boomers began saving for retirement was 35, Nationwide says, whereas Gen Zers and millennials started saving younger — usually between ages 24 to 30.
"A new year is a natural point to reset your financial habits," Cathy Marasco, head of protected retirement at Nationwide, said in a news release Tuesday. "Workplace retirement plans are evolving to include many of the tools and protections needed to build long-term security."
Many of these perks have been ushered in by SECURE 2.0, a sweeping law that made several changes to 401(k)s, individual retirement accounts and similar retirement savings plans. Thanks to that legislation, automatic 401(k) enrollment is becoming the norm — and is part of the reason why younger Americans are starting to save so early these days.
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Retirement savings by generation
While younger Americans have time — and compounding returns — on their side, retirement account balances for boomers still dwarf the balances of other age groups.
Average 401(k) account balance | Average IRA account balance | |
|---|---|---|
Gen Z (1997-2012) | $17,000 | $8,019 |
Millennial (1981-1996) | $80,700 | $29,410 |
Gen X (1965-1980) | $217,500 | $12,0273 |
Boomer (1946-1964) | $267,900 | $287,640 |
The figures above reflect average account balances as of September 2025, according to an analysis of 52 million retirement accounts at Fidelity Investments. They’re not a savings goal per se — but rather a gut check to see how you stack up with your peers.
Overall, retirement advisors largely recommend saving about 15% of your paycheck each month for retirement (including company contribution matching). Experts advise that by your 30s, you should aim to have the equivalent of one year of your annual salary saved.
As you get older, it snowballs:
- In your 40s, save three times your annual salary.
- In your 50s, save six times your salary.
- In your 60s, save eight times your salary, all the way up to 10 times as you approach retirement age.
"Building the habit early — even with modest contributions — sets the foundation for decades,” Eric Ludwig, director of the Center for Retirement Income at The American College, remarked in the Nationwide news release.
"The lesson is simple,” he said. “Don't wait for the perfect moment or the perfect amount to start saving."
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