10 Retirement Benchmarks Boomers Ignore at Their Peril
Written by
Andrew Lisa
Edited by
Jenna Klaverweiden
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The youngest baby boomers will turn 62 in 2026. The oldest are turning 80. It’s the crest of what Vanguard refers to as the “silver tsunami” in its How America Retires report, which noted that 4.2 million individuals turned 65 in 2025.
For most, this age range includes a monumental shift from saving for retirement to managing savings in retirement. Here are the ages, dollar amounts, years, percentages and other benchmarks they must not ignore at this crucial stage of their financial lives.
Also see key signs that you’re ready to retire.
1. 10x Your Annual Salary
According to Fidelity, boomers who have 10 times their final annual salary saved by age 67 probably have enough to retire comfortably. Those who don’t risk outliving their money.
2. 12% to 15% of Annual Income
The Vanguard report found that those who consistently saved 12% to 15% of their income over the decades were generally prepared to retire. If you under-saved, you might consider working longer or pursuing other income sources.
3. 25x Your Annual Spending
Alternatively, Citizens Bank advises that boomers are ready to retire when they have 25 times their annual expenses saved. For example, someone who expects to spend $65,000 in their first year would need a $1.6 million nest egg.
4. 75% of Income From Savings
The Vanguard study also concluded that comfortable retirees rely on their savings for no more than 75% of their income. Spreading Social Security too thin to compensate for insufficient savings can lead to lifestyle sacrifices and financial strain.
5. 59 1/2 to 73: The Gap Years
The years between ages 59 1/2, when early withdrawal penalties end, and 73, when required minimum distributions begin, offer a crucial window for account conversions. Whether, when and how to conduct Roth or traditional 401(k) or IRA conversions varies, but the gap years provide a limited-time opportunity for managing future taxes while adjusting for current cash flow needs.
6. 65: The Medicare Pivot
Medicare eligibility starts at 65, signaling a major shift in saving and spending strategies for most retirees. According to Mariner Wealth Advisors, successfully pivoting from employer-based plans to Medicare requires:
- Reducing taxable income to lower premiums
- Adjusting withdrawals to manage income-related monthly adjustment amount (IRMAA) surcharges
- Budgeting for out-of-pocket costs that Original Medicare doesn’t cover.
7. 62 to 70: Social Security Planning
According to the Social Security Administration, few decisions are more consequential than when to take Social Security. Eligibility begins at 62, when early retirement deductions can reduce your benefits by up to 30%. At 70, check-enhancing delayed retirement credits end.
8. Full Retirement Age
Full retirement age — 67 for those born in 1960 or later — is when you’re guaranteed your full Social Security benefit. Additionally, it’s when you collect your full benefit, regardless of how much income you earn.
9. The Five-Year Roth Rule
Roth withdrawals are tax-free, but only if the account has been open for at least five years, according to Vanguard. Even those older than 59 1/2 face taxation on withdrawals from immature Roth accounts — including those converted from traditional accounts.
10. 86% Find Peace of Mind Through Advisor
Finally, the Vanguard study identified a psychological benchmark that is hard to quantify but essential to mental and financial well-being in retirement. A full 86% report finding peace of mind and emotional value from working with a financial advisor.
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