American workers might feel closer to retirement with every passing birthday, but financially, many are moving in the opposite direction.
New data from Vanguard shows retirement readiness actually declines by generation, with baby boomers being the least prepared. That’s a troubling trend for credit unions serving older members. Meanwhile, younger workers are pulling ahead thanks to smarter plan design, escalating savings rates, and earlier access to quality investments.
RETIREMENT READINESS BY GENERATION
FOR U.S. HOUSEHOLDS|DATA AS OF 11.04.2025
SOURCE: VANGUARD U.S. RETIREMENT OUTLOOK
Strategic Insights
- Just 40% of baby boomers are on track to maintain their standard of living in retirement. For those who fall short, the gap averages $9,000 a year, which represents nearly a quarter of retirement spending needs.
- By comparison, 47% of Gen Z is on track to maintain their standard of living in retirement. That gap is $3,000 a year.
- It’s a worrying sign that no cohort has a majority of members ready for retirement, pointing to a systemic readiness gap rather than a planning issue prevalent among individual generations or people.
Credit Unions And Retirement Support
- Helping baby boomers, and the generations that follow, with financial planning and education can go a long way toward moving the needle of retirement preparedness. Specially designed products and services don’t hurt, either.
- In 2022, InTouch Credit Union($808.5M Plano, TX) expanded services for those nearing or in retirement. “A common misunderstanding is that financial planning for retirement ends the day you stop working,” says CEO Kent Lugrand. “In reality, it continues long after.” The credit union uses a variety of channels — such as seminars, one-on-one counseling, and digital resources — to deliver information in a way that works for all members. Read more.
- In 2025, Golden 1 Credit Union ($21.1B, Sacramento, CA) was named No. 1 on Money.com’s “Best Banks and Credit Unions for Seniors.” Its Golden Prestige package for members 62 and older includes free checks, no monthly maintenance fees, up to 10 free cashier’s checks a month, access to a notary, and 30,000 surcharge-free ATMs. Read more.
- Michigan Legacy Credit Union ($214.4M, Wyandotte, MI) works to make sure members keep their hard-earned savings with a program that helps spot potential for financial exploitation before fraudsters can wipe out accounts. Read more.
- Hanscom Federal Credit Union ($1.8B, Hanscom AFB, MA) offers fun, free interactive challenges via an escape room concept that bring financial concepts, like how to plan for retirement, to life. Read more.
Don’t stop here. Retirement readiness isn’t just about saving more, it’s about helping members feel supported and confident in the decisions they make over time. The Member Engagement & Financial Wellbeing Consortium, powered by Callahan & Associates and Gallup, equips credit unions to take mission-aligned, data-informed actions that change member perceptions and behaviors — driving stronger member financial wellbeing and sustainable, profitable growth for the credit union. Schedule a conversation with Callahan’s program facilitators to learn more. Request a conversation.
