Let me be honest with you—I’ve been watching my parents and their friends navigate this whole retirement thing, and it’s honestly pretty scary. Most baby boomers I know are nowhere near ready to stop working, even though they’re supposed to be winding down.
The numbers don’t lie. According to the Federal Reserve, people between 55 and 64 have a median retirement savings of just $185,000. Those already in their late 60s and early 70s? They’ve got about $200,000 saved up. Now, I’m no financial wizard, but when I think about my grandmother who lived another 25 years after retiring, that money just doesn’t seem like enough.
But here’s the thing—while most boomers are struggling, some are absolutely crushing it. I’ve noticed three specific habits that separate the financially secure boomers from those who are stressed about money. And honestly, these strategies aren’t rocket science.
They Master the “Me First” Money Rule
This sounds selfish, but it’s actually brilliant. Smart boomers pay themselves before anyone else gets a dime.
My neighbor Bob explained it to me this way: “Every time I got paid, I’d move money to savings before I even looked at my bills. It was like that money never existed in the first place.”
There’s a reason this works so well. U.S. News found that 42% of Americans don’t have emergency savings at all. That’s terrifying when you think about it—nearly half of us are one car repair away from going into debt.
The boomers who avoided this trap set up automatic systems. Some use their company’s 401(k) to grab money straight from their paychecks. Others schedule automatic transfers to IRAs or regular savings accounts. The key is making it happen without having to think about it.
And get this—the average boomer carries around $6,754 in credit card debt according to Experian. But the ones with emergency funds? They don’t have to choose between paying for a broken water heater and racking up interest charges.
They Resist the Spending Trap That Gets Everyone Else
You know what’s wild? As people make more money, they often end up more stressed about finances, not less. It’s called lifestyle creep, and it’s absolutely brutal.
PYMNTS Intelligence found that nearly half of Americans making over $100,000 live paycheck to paycheck. That’s insane when you really think about it. Six figures, and they’re still worried about making ends meet.
The financially secure boomers I know figured out something crucial: they stopped upgrading their lives every time their paychecks got bigger. When my friend’s dad got promoted to partner at his law firm, he didn’t buy a bigger house or fancier car. He just saved more money.
“I realized I was already happy with what I had,” he told me. “Why mess with that just because I could afford more stuff?”
It’s actually pretty freeing when you think about it. Instead of constantly wanting more, they focused on being content with enough. Then retirement became this exciting opportunity rather than a financial nightmare.
They Keep Playing the Investment Game (Smartly)
Here’s where a lot of people mess up—they think you stop investing when you get older. The smart boomers? They keep their money working, even as they approach or enter retirement.
According to Empower’s research, financially savvy boomers typically put about 36% of their assets in U.S. stocks and keep only 7.6% in international stocks (which tend to be more unpredictable). They also hold roughly 10.5% in U.S. bonds and about 30% in cash.
That’s not a “play it completely safe” approach—it’s balanced. They’re not dumping everything into risky investments, but they’re not stuffing it all under a mattress either.
My friend’s mom explained her strategy: “I want my money to keep growing, but I also need to sleep at night. So I invest in things that pay me regularly—dividend stocks, some real estate trusts, bonds.”
She also mentioned something called CD laddering, which basically means buying certificates of deposit that mature at different times. It’s not exciting, but it’s steady income with very little risk.
The really smart ones also maximize their tax advantages. They keep contributing to IRAs and 401(k)s as long as they’re working because there’s no age limit on contributions. Why give the government more money than you have to?
Why These Baby Boomers Aren’t Unprepared for Retirement
Look, most baby boomers are unprepared for retirement, and that’s genuinely concerning. But it’s not hopeless. The ones who are doing well aren’t necessarily making more money—they’re just making smarter decisions with what they have.
They prioritize saving over spending, resist the urge to upgrade their lifestyle constantly, and keep their investments working for them instead of panicking and pulling everything out of the market.
If you’re among the baby boomers unprepared for retirement, it might not be too late to implement some of these strategies. And if you’re younger? Well, you’ve got even more time to make these habits work for you.
The truth is, retirement security isn’t about being perfect—it’s about being consistent and smart with your choices. These boomers figured that out, and honestly, the rest of us could learn a thing or two from them.
