Retirement readiness

More boomers prepared for retirement, but gaps persist

June 17, 2024

A series of bar charts showing the retirement savings gap or surplus as a percentage of preretirement income. The charts show results from the 2023 Vanguard Retirement Outlook, the 2024 Vanguard Retirement Outlook, and the 2024 Vanguard Retirement Outlook if individuals accessed their home equity. For those in the 25th income percentile, the results were –32% in 2023, –36% in 2024, and –22% in 2024 when including home equity; for those in the 50th income percentile, the results were –33%, –25%, and –12%, respectively; for those in the 70th income percentile, the results were –17%, –12%, and 0%, respectively; and for those in the 95th income percentile, the results were 20%, 29%, and 39%, respectively.
A series of bar charts showing retirement readiness results for baby boomers. At the 25th income percentile, workers are projected to replace 51% of their preretirement income in 90% of market and mortality scenarios, leaving a savings gap of 36 percentage points; at the 50th income percentile, workers are projected to replace 51% of their preretirement income, leaving a savings gap of 25 percentage points; at the 70th income percentile, workers are projected to replace 53% of their preretirement income, leaving a savings gap of 12 percentage points; and at the 95th income percentile, workers are projected to replace 81% of their preretirement income, more than covering their spending needs.

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