Here's How 24% of Baby Boomers Are Solving Their Retirement Crisis

Here's How 24% of Baby Boomers Are Solving Their Retirement Crisis

It's no secret that Americans are woefully unprepared for retirement, and those inching closer to it by the day are no exception. The average household aged 56 to 61 has just $163,577 set aside for the future, according to the Economic Policy Institute -- but that's not a particularly healthy number, especially if we follow the well-established 4% rule. If we apply a 4% withdrawal rate to that average sum, we arrive at just $6,543 in annual income, at least initially. And that's nowhere close to enough money to live off, even if we factor in Social Security.

Another thing: While that $163,577 represents the average savings balance among baby boomers nearing retirement, the median savings balance for that age group is just $17,000. And when you have a median that's well below the average, it means a greater number of people have less than the average than more.

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Source: Fool.com