6 Clues Your Retirement Nest Egg Tops the Typical Boomer's

Many retirees worry that they fell short on saving in their 401(k)s, and articles about retirement often highlight that concern. But plenty of people are actually well ahead of their peers when it comes to building savings for later life.

Some reached that point because they earned enough to maximize contributions. Others may have had more modest incomes but started saving consistently in their 20s and kept at it for decades. The signs below can help show whether your retirement savings put you ahead of the average Boomer, along with a few ways to help protect that money.

The typical Baby Boomer has less than $250,000 saved

Fidelity says the average 401(k) balance for Boomers is $260,300, while the average IRA balance is $286,700. Still, averages can be misleading because high earners can pull the numbers upward. The median balance is usually a better gauge of what most people have saved.

Vanguard’s How America Saves report says the median 401(k) balance across all age groups is just $44,115. With so many people holding relatively small balances, many count on Social Security to help cover retirement income.

1. You have saved 10 times your salary

Fidelity uses a simple retirement benchmark: by age 67, you should aim to have 10 times your income saved. It also suggests having six times your income saved by age 50 and eight times by age 60. Reaching those levels likely means you are ahead of many others in your age group.

That kind of balance can allow you to withdraw only a modest amount each year while the rest stays invested and continues to grow.

2. You put away 15% of your income

If you saved 15% of your income through most of your working life, you are probably ahead of many people in your generation. Pair that with other smart money moves, such as eliminating high-interest debt and paying off your mortgage before retirement, and you may be in a strong position financially as you age.

3. You take full advantage of catch-up contributions

Catch-up contributions can be one of the most effective ways to boost retirement savings before leaving the workforce. Under the SECURE 2.0 Act, catch-up rules have changed in a few ways.

Workers age 50 and older can now contribute an extra $8,000 a year on top of the standard 401(k) limit. Those ages 60 through 63 qualify for super catch-up contributions and can add another $11,250. With the new $24,500 401(k) maximum, workers in that age range can contribute up to $35,750 in total.

4. You avoid early withdrawal penalties

Another reason some Boomers end up with more savings than others is that they steer clear of early withdrawal penalties. Vanguard’s How America Saves report found that 6% of workers who contributed to a 401(k) took a hardship withdrawal in 2025. The Secure Act allows workers to withdraw $1,000 without penalty for a self-certified hardship, but other withdrawals or 401(k) loans can still involve fees and lost investment growth.

5. You have an emergency fund

Because markets move up and down, pulling money from investments during a downturn can reduce the value of your retirement savings. That is why many financial experts recommend keeping one to two years’ worth of expenses in an emergency savings account. Having cash set aside for tough times can help you protect your nest egg and stay ahead of your peers.

6. You have a clear withdrawal plan

Having more retirement savings than your peers is a major achievement. But an equally important step is having a thoughtful withdrawal strategy for retirement, especially if you have several accounts such as 401(k)s, IRAs, and HSAs.

A withdrawal strategy outlines how to take money out in the most tax-efficient way so you can get the greatest long-term benefit. Many financial advisors suggest withdrawing from accounts in a particular order depending on what you own, so it can be helpful to speak with a financial planner if you have questions.