What Are the Typical Savings for a Baby Boomer?
Baby boomers are known as the wealthiest generation ever. They benefited from the economic boom after World War II, buying homes and landing high-paying jobs without the burden of student loan debt. This set them up for a prosperous life and the ability to pass on wealth to future generations.
But does this wealth show up in their bank accounts? Let’s dive into how much the average baby boomer has saved.
**How Much Baby Boomers Have in Savings**
Despite their overall wealth, many baby boomers have surprisingly low savings. A recent GOBankingRates survey found that the largest group of younger boomers (ages 60 to 64) and older boomers (ages 65 to 78) have $100 or less in their savings accounts, with 41% and 33%, respectively, reporting such low balances.
On the flip side, some boomers have $10,000 or more saved up. Specifically, 20% of younger boomers and 18% of older boomers fall into this category, suggesting a significant wealth gap within the generation.
**Savings Breakdown for Younger Baby Boomers (Ages 60 to 64)**
– $100 or less: 41%
– $101 to $500: 10%
– $501 to $1,000: 11%
– $1,001 to $2,000: 5%
– $2,001 to $5,000: 7%
– $5,001 to $10,000: 5%
– $10,000 or more: 20%
**Savings Breakdown for Older Boomers (Ages 65 to 78)**
– $100 or less: 33%
– $101 to $500: 16%
– $501 to $1,000: 5%
– $1,001 to $2,000: 10%
– $2,001 to $5,000: 9%
– $5,001 to $10,000: 9%
– $10,000 or more: 18%
**How Much Should Boomers Have in Savings?**
Generally, it’s recommended to have three to six months of living expenses saved for emergencies. However, boomers might need more than that. While working, an emergency fund helps bridge the gap between jobs, and you can replenish it once you start earning again. Since many boomers are retired, keeping a larger savings balance is wise.
Financial advisor Rob Burnette suggests that it’s not uncommon for boomers to have six to 12 months’ worth of expenses saved. This fund is crucial to avoid relying on credit cards with high-interest rates during emergencies.
This article is based on a GOBankingRates survey of 1,063 Americans aged 18 and older, conducted between November 27 and 29, 2023.