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When it comes to saving enough money for retirement, Fidelity 2026 Retirement Plan Status The study offered reasons for optimism. Nearly three in four respondents – 72% – expect to retire on their own terms, up five percentage points from 2025.
However, it was not all roses. Although the good news is that Americans are contributing an average of $9,000 per year to their retirement funds Loyalty), they should not rest easy if the Boomers maintained the average or contributed even more.
Boomers are less likely than Millennials and Gen Zers to be confident that they can retire if and when they want — and for good reason. That’s why $9,000 a year in retirement savings may no longer be enough.
Self-confidence diminishes as retirement age approaches
The optimism of youth and the wisdom of age was reflected in the Fidelity study, which found that 75% and 78% of Gen Z and Millennials, respectively, were confident in their ability to retire on their own terms.
By comparison, only 63% of Gen X and 68% of Boomers expressed such optimism.
Inflationary pressure does not discriminate based on age
Boomers joined all age groups in citing rising prices as the biggest obstacle to saving money. Exactly 50% of both the oldest generation and the youngest Gen Z said the rising cost of living was the biggest obstacle to banking money, as did 49% of Millennials and 56% of Gen
Economic reports can be deceptively encouraging because a decline in the inflation rate does not necessarily mean that daily life is getting cheaper.
Nonprofit, nonpartisan government data aggregator USFacts noted that while inflation has fallen from a 40-year high of 9% in 2022 to less than 2.5% in 2026, prices have not declined by 6.5 percentage points in that time. They just rose slowly by 6.5 percentage points, meaning the year’s highest prices were largely set as new lows and have been rising ever since.
It’s hard for boomers to avoid rising prices
US Bureau of Labor Statistics’ The most recent Consumer Price Index (CPI) report showed that the general inflation rate is 2.4%, but seniors generally experience a faster increase in the cost of living. CPI-E The index weights the CPI differently to more accurately reflect the expenses that disproportionately impact individuals under age 62 – the youngest boomers – and older individuals, namely housing, health care, apparel, transportation, and food.
It consistently shows that prices rise faster for seniors than general inflation, so if Boomers are struggling despite putting away $9,000 or more per year, it’s because $9,000 buys less for them than it does for younger generations, who will eventually get the same retirement reality check.