56 million Americans over 65 make up just 17% of the US population, but they hold more than half of America's wealth, at $96.4 trillion

56 million Americans over 65 make up just 17% of the US population, but they hold more than half of America's wealth, at $96.4 trillion, per the Fed.


However, there's a flaw in the narrative of a rosy boomer retirement: Many older Americans are not adequately prepared for their later years. While it's true that a significant number of this generation is affluent, there's a substantial portion that isn't. Similar to every age group, retirees face considerable wealth inequality — a situation that has worsened over the past decade. Despite holding over half of the nation's wealth, numerous boomers lack the financial resources to cover the expenses of long-term care. In 2022, 43% of individuals aged 55 to 64 had no retirement savings at all. Additionally, 30% of those over 65 were economically insecure, making less than $27,180 for a single person. With younger boomers less financially prepared for retirement than their older counterparts, the issue is expected to escalate.

While it's undeniable that some boomers will experience a comfortable retirement, the financial reality for many American retirees is grim. The most recent Survey of Consumer Finances by the Fed revealed that the average net worth for individuals aged 65 to 74 was $1.8 million, making it the wealthiest age cohort in the survey. However, this aggregate figure obscures the challenging financial outlook for a significant number of retirees.

Average net worths can be misleading when concentrated among a few wealthy individuals. A more accurate measure is median net worth, which prevents the ultrarich from distorting the overall picture. In the Fed's survey, half of Americans aged 65 to 74 reported having less than $410,000 to supplement Social Security and fund their retirement, with much of this potentially tied up in real estate. The median retirement account for this age group is only $200,000, indicating that half of 65- to 74-year-olds have even less saved. Given these figures, it's evident that a substantial proportion of boomers are not adequately prepared for their later years. The National Council on Aging estimates that 17 million people over 65 are considered economically insecure.

For individuals aged 75 and older, the median income is $49,000, including an average Social Security benefit of $21,162 annually. Those who own their homes outright, accounting for 81% of individuals older than 75, could lead a comfortable life on this income. However, if they reside in a more expensive area or require external assistance with daily activities, this income may quickly become insufficient. And these considerations are just for individuals in the middle of the wealth distribution.