Baby boomers are the wealthiest generation in history. Members of this generation prospered thanks to the post-World War II economic boom. They bought homes and got high-paying jobs without taking on student loan debt, setting them up for a wealthy life — and even wealth to pass onto future generations.
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But is this wealth reflected in their bank accounts? Here’s a look at how much the average baby boomer has in savings.
How Much Baby Boomers Have in Savings
Despite being the wealthiest generation, many baby boomers have surprisingly low bank account balances. According to a recent GOBankingRates survey, the largest proportion of younger boomers (ages 60 to 64) and older boomers (ages 65 to 78) have $100 or less in their savings account, with 41% and 33%, respectively, reporting low balances.
On the other hand, boomers are most likely to have $10,000 or more in their savings accounts. Among younger boomers, 20% have $10,000 or more and among older boomers, 18% have $10,000 or more. This could be indicative of a large wealth gap among this generation.
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Here’s a closer look at baby boomers’ savings account balances:
How Much Younger Baby Boomers Have in Their Savings Accounts
Here’s a look at the proportion of boomers ages 60 to 64 with the following savings account balances:
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$100 or less: 41%
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$101 to $500: 10%
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$501 to $1,000: 11%
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$1,001 to $2,000: 5%
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$2,001 to $5,000: 7%
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$5,001 to $10,000: 5%
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$10,000 or more: 20%
How Much Older Boomers Have in Their Savings Accounts
Here’s a look at the proportion of boomers ages 65 to 78 with the following savings account balances:
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$100 or less: 33%
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$101 to $500: 16%
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$501 to $1,000: 5%
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$1,001 to $2,000: 10%
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$2,001 to $5,000: 9%
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$5,001 to $10,000: 9%
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$10,000 or more: 18%
How Much Should Boomers Have in Savings?
While the typical rule of thumb says to have three to six months of living expenses in a savings account to act as an emergency fund, boomers should have more than that. When you’re working, that emergency fund acts as a cushion between jobs. The idea is that you would replenish any funds you withdraw once you start working again. Since many boomers are no longer working, keeping a higher savings account balance is smart.
“It’s not uncommon to see them with anywhere from six to 12 months’ worth of expenses in their savings account,” said Rob Burnette, CEO and investment advisor representative at Outlook Financial Center. “Its purpose is to be there when you need it, so you don’t have to put an emergency expense on a credit card at a 20%-plus percent interest rate.”
Jake Safane contributed to the reporting for this article.
Methodology: GOBankingRates surveyed 1,063 Americans ages 18 and older from across the country between Nov. 27 and Nov. 29, 2023, asking 22 different questions: (1) What category best describes your current financial institution?; (2) Have you considered changing banks within the past year?; (3) If you have considered changing banks in the past year, were any of the following factors? (Select all that apply); (4) Which feature, perk or other offering is most important to you when opening an account with a new institution?; (5) Are you currently satisfied with all your banking products and services offered by your bank/credit union?; (6) Would you ever have different types of accounts across multiple banks?; (7) What is your most preferred method of banking?; (8) Which of the following is the biggest factor of you staying with your current bank?; (9) Which of the following bank accounts do you currently use/have open? (Select all that apply); (10) How much is the minimum balance you keep in your checking account?; (11) How much do you currently have in your savings account?; (12) What amount of a sign-up bonus would make you consider switching banks?; (13) Have you considered using any app-only banking platforms (aka neobanks) in the past year?; (14) How important is it to you for your bank to be affiliated with a crypto exchange/platform?; (15) In the past year, how often have you written a physical check?; (16) When was the last time you visited your bank in person?; (17) Why would you choose to visit your bank in person? (Select all that apply); (18) Have you had an overdraft on your checking account in the past year?; (19) How much do you trust your current bank to act in your best interest?; (20) How much do you trust your current bank to protect your private information?; (21) Do you trust regional banks more than national banks?; and (22) How much cash do you keep at home? GOBankingRates used PureSpectrum’s survey platform to conduct the poll.
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This article originally appeared on GOBankingRates.com: How Much Does the Average Baby Boomer Have in Savings?