Is Everyone Doing Better With Their Money… or Just Faking It?

Sometimes it feels like everyone else is doing better with their money than you. You’re scrolling through Instagram, and suddenly it seems like every friend, coworker, and even cousin has their financial life perfectly together—vacations, new homes, fancy cars—and it all seems so perfectly curated. But is this really true, or is it just the highlight reel messing with our heads?

Well, we can actually dive into that a little bit and see where we stack up to our peers financially. Fidelity has recently released a breakdown of retirement savings by generation, and we can use that as a benchmark to see where we’re all at. Today, we’ll deep dive into those numbers, exploring where each generation sits financially when it comes to retirement savings. By the end of this, we’ll also share some of the strategies that you can use to do money better, as well as some practical targets to aim for at each age to help ensure you’re on your way to financial independence.

A quick note before we dive in—Fidelity’s study just looks at balances in 401(k)s and IRAs, so it doesn’t capture the complete financial picture for those who utilize other types of investment accounts like 403(b)s, 457s, or even brokerage accounts. However, considering more than half of Americans haven’t invested outside of a 401(k), this probably gives us a pretty solid snapshot of where the average person stands. And regardless of where you stand, be sure to go ahead and smash that like button.

Let’s jump right in.

First up, let’s talk about Gen Z—those born between 1997 and 2012. Right now, these individuals are somewhere between 13 to 28 years old. Obviously, since a lot of Gen Z are below the age where they even have access to a 401(k), these numbers may not be all that impressive. But the average 401(k) balance for Gen Z sits around $13,500. This amount is thanks to a total contribution rate—that’s employee and employer—of 10.9%.

In addition to the 401(k) assets, the average IRA balance for Gen Z is about $6,600, making the combined total of their retirement assets just over $20,000. It’s important to remember that, in addition to perhaps not being old enough to contribute to a 401(k), Gen Z are more likely to have things like student loans and lower income since they’re just starting out on their financial journey. That said, though, if you’re Gen Z and you’re watching this, we want you really trying to exercise that discipline muscle—to live on less than you make, save what you can, since those early dollars are so powerful with compounding growth.

Moving along to Millennials—those born between 1981 and 1996, who are currently between 29 and 44 years old. Millennials have an average 401(k) balance of $67,300, combined with an IRA average of $25,100, totaling approximately $92,000. Millennials are contributing about 13.3% of their income between their own contributions and employer matches.

A lot of Millennials are in what we call the “messy middle,” which is the stage of life where maybe your family’s growing, kids are getting into daycare or extracurriculars, and your discretionary income can be eaten up if you aren’t careful. But even with everything life is throwing at you at this stage, if you’re a Millennial, please, please, please be intentional with your savings and investing. Though your dollars may not have the time to grow like those in your 20s, your dollars at this age are still immensely powerful. Just don’t let the chaos of everyday life derail your future.

Now it’s time to start talking about my generation—Gen X. Born between 1965 and 1980, and yes, this includes me. Just to clarify—I am not a Boomer, folks. Those of us in Gen X, the forgotten generation, currently range from 45 to 60 years old. At this point, the numbers make a pretty big jump. By and large, we have likely ramped up our investment behavior, and we have either entered or gone through our peak earning years.

The average 401(k) balance for Gen X is $192,300. When you add the average IRA balance of $103,950, we’re looking at about $296,000 combined. Fellow Gen Xers, our generation contributes around 15.2% of our income toward retirement accounts, which is a step up from younger generations, even though I have to admit it does include those employer contributions too.

For those of us in Gen X, it’s important to note that while we might be further along financially than our younger counterparts, we’re also in a critical phase where we need to be more intentional with our overall strategy from a retirement planning perspective. Not only that, but many are juggling college expenses for our kids, trying to catch up on retirement savings if we feel like we’re behind, or maybe even caring for our aging parents.

Finally, we’ve arrived at the Boomers. Baby Boomers were born between 1946 and 1964, and they’re now between the ages of 61 and 79 years old. Boomers have the largest balances, boasting an average 401(k) balance of $249,000 and an impressive average IRA balance of $257,000. You combine those two numbers, and Baby Boomers average a total of about $514,000 saved up, with a combined contribution rate of 16.9%.

For Baby Boomers, this stage of life brings unique challenges and opportunities. Many are either already enjoying retirement or actively planning their transition into retirement. This means their investment strategy often shifts towards a more balanced approach—one that focuses on preserving the wealth they’ve built while still maintaining enough growth to support what could be several decades of retirement.

Now it’s critical to keep in mind a couple of important caveats with all of these figures. Across every generation, not everyone has access to a 401(k), and those without one might find it harder to achieve similar savings rates, with fewer savings going to tax-advantaged accounts at their disposal. The other really big thing to keep in mind is that none of these numbers account for early withdrawals or loans taken out of retirement accounts, which unfortunately is pretty common. Surprisingly, about 16% of all workers across these generations have outstanding loans against their 401(k). The fact that these accounts are what we call “leaky” can significantly reduce your total retirement savings over time.

But if you’ve managed to stay disciplined, avoiding unnecessary withdrawals or loans, and you find yourself ahead of the averages for your generation—congratulations. That’s absolutely fantastic. Just don’t tune out quite yet, because just being above average might not be enough to ensure a comfortable retirement. We’ll get into that in just a minute.

On the flip side, if you find yourself falling behind these numbers—don’t panic. There’s plenty you can do to catch up and secure your financial future. Let’s walk through some of those practical strategies to boost your savings and get ahead.

First and foremost, you have to embrace saving aggressively. This is undoubtedly the toughest part, but it’s also what separates the average American from the financial mutants. Those are the people who think and behave differently with their money. But again—save, save, save. We strongly suggest aiming to save 25% of your gross or pre-tax income. If you’re earning under $100,000 or $200,000 as a married household, feel free to count your employer’s match toward that 25%. Above those thresholds, we recommend excluding the match—primarily because Social Security and the social safety net replaces a smaller percentage of your income at higher earning levels, and lifestyle inflation becomes a more pressing risk.

Speaking of investing, it’s crucial to ensure you’re getting the biggest bang for your buck. That is not only in reference to investment returns, but also risk level, emotional strain, and overall headache. This is where index funds shine. They’re straightforward, cost-effective, tax-efficient, and historically they’ve provided consistently strong returns—around 10% annually for something like the S&P 500.

If you prefer an even simpler approach, index target retirement funds can be an excellent choice to focus your research. These funds automatically adjust your investment mix, becoming more conservative as you get closer to retirement. For example, a 2050 index target date fund is growth-focused now but will gradually shift towards more bonds and cash as the target retirement year approaches.

But investing isn’t just about choosing the right funds. It’s also about staying on track with your savings goals. Let’s look at some concrete targets that can help you measure your progress and ensure you’re building enough wealth for a comfortable retirement. These metrics are used to understand what multiple of your income you’ve saved in order to help you gauge your progress over time.

So let’s jump right in. By age 30, aim for one time your annual income. By 40, three times your annual income. By 50, target 6.4 times. And by 60, strive for about 13.7 times your income. For example, if you made $50,000 for your entire career, you should have $50,000 invested by 30, $150,000 by 40, and so on. And then here’s the big breakthrough: by retirement, your goal should be around 20 times your annual income.

I know some of these numbers might seem daunting at first glance, but they’re fully achievable—especially if you start early. If you’re already on track, keep pushing forward. If not, use these numbers as motivation to jumpstart your journey today.

And here’s something crucial to remember. While we’ve talked a lot about numbers and benchmarks today, comparing ourselves to others can be a useful gauge—but it’s just one piece of a much bigger puzzle. As we always say around here, there’s more to life than money. The most important thing is that you’re making consistent progress toward your financial goals while maintaining balance in your life.

Whether you’re starting late, catching up, or already ahead of the curve—what matters most is taking action today and maintaining that momentum in a way that aligns with your personal values and lifestyle. Remember, everyone’s financial journey is unique. But understanding where you stand compared to others, and setting clear, achievable goals, can make all the difference.

Now go ahead, smash that like button, subscribe, and no matter what generation you belong to—keep building your great big beautiful tomorrow.