Just how prepared are baby boomers for retirement?

As baby boomers inch further into their golden years, a new survey from the Transamerica Center for Retirement Studies (TCRS) and Transamerica Institute reveals how this influential generation has both shaped and struggled with retirement preparedness.

According to the report titled An Uncertain Future: Retirement Prospects of 4 Generations, baby boomers, born 1946–1964, are forging new paths into later-life employment and retirement planning, yet many remain at financial risk due to late starts and a lack of contingency plans.

Stretching the retirement timeline

In a significant generational shift, 57% of baby boomer workers expect to retire at age 70 or older, or not at all. Many boomers are extending their working years to close savings gaps, embracing part-time work or second careers. This trend defies traditional expectations of retirement beginning at 65, a sign of both resilience and necessity.

But working longer isn’t without its challenges. “Baby boomers are stretching the boundaries of working later in life. However, they are vulnerable to health and employment issues, so they need contingency plans in case retirement comes unexpectedly,” said Catherine Collinson, CEO of TCRS.

Financial preparedness: A mixed bag

On paper, Boomers have accumulated the highest median retirement savings among the four generations surveyed — $270,000 in retirement accounts and $20,000 in emergency savings. Yet the cracks in this apparent preparedness are visible:

• Only 27% have a written financial strategy for retirement.
• Just 38% have a backup plan for income in case of forced early retirement.
• 12% have taken early or hardship withdrawals from their retirement savings.

Researchers say these numbers hint at the reactive, rather than proactive, planning patterns among many older Americans.

Retirement income: still leaning on Social Security

Despite the push to delay retirement and save more, 39% of baby boomers still expect Social Security to be their primary source of income in retirement. This reliance, coupled with widespread concerns about the long-term viability of the Social Security program, leaves many boomers in a precarious position. Another 30% expect to lean on income from personal retirement accounts such as 401(k)s and IRAs.

Interestingly, most baby boomers didn’t start saving until a median age of 35, largely because 401(k) plans weren’t widely available until the latter part of their careers. 

“They were already mid-career when 401(k) plans were introduced, so they got a later start on their retirement savings journey. Now, many are making up for lost time,” Collinson noted.

The baby boomer generation has reshaped every life stage it has passed through, and retirement appears to be no exception. Many are redefining what it means to age, remain productive, and stay financially afloat. But with retirement looming, the lack of formal planning and the heavy reliance on government programs like Social Security raise concerns about sustainability.

As the U.S. faces critical questions about the future of retirement funding and employment for older adults, the report calls for greater support from employers and policymakers. It emphasizes the need for expanded retirement benefit access, education, and protection of programs like Social Security and Medicare.

In the end, the boomer legacy may be less about financial perfection and more about navigating — and reshaping — the evolving retirement landscape with characteristic determination.