Here’s how many Americans are actually on track to maintain their lifestyle during retirement. Are you one of them?

Regardless of where you are in your career and how long you have until retirement, proper planning for post-work life means ensuring you have enough money to continue to adequately support yourself.

Since many workers experience lifestyle changes as they build their income throughout their careers, it’s important to consider whether you’re saving enough to maintain your lifestyle after retirement.

According to Vanguard’s 2025 Retirement Outlook report, less than half of retirement savers are on track to be able to maintain their current lifestyles after they leave the workforce.

Preparing for retirement by generation

Vanguard found that older Gen Z workers (ages 24-28) are best prepared to continue their lifestyle in retirement, with 47% starting their retirement savings journey on track.

This percentage drops slightly with older generations, as 42% of Millennials, 41% of Generation

However, it’s worth noting that while their savings may be delayed, nearly 90% of baby boomers own a home, so leveraging home equity or selling a home and renting it may be another option to provide support in retirement as well.

How to make sure you’re on the right track

Assessing whether you are adequately preparing for retirement requires considering your current retirement savings, your ability to save going forward, your current and projected expenses, and how long you expect to continue working. Retirement planning experts often suggest that you aim to save 10 to 12 times your final (or highest) salary, to replace about 70%-80% of your cost of living before retirement.

For younger retirement planners, making consistent contributions to retirement accounts is essential to harnessing the power of compounding.

Those who are approaching retirement in the coming years but lack adequate savings should evaluate whether catch-up contributions might be worthwhile.

If you have access to a defined contribution plan, it’s important to take advantage of your employer’s matching contributions program, if there is one. Not taking advantage of an employer match is like leaving free money on the table.

Vanguard found that workers with access to defined contribution plans such as 401(k) and 403(b) were twice as likely to meet their retirement savings goals as those without.

Managing expenses in retirement

For many retirees, success in supplementing the limited income provided by retirement savings requires a lifestyle adjustment. This may mean downsizing to a smaller home or moving from an area with a high cost of living to one that is more suitable for retirement living. Cutting back on unnecessary expenses is another way to reduce your budget in retirement.

To prepare for retirement, you will need to estimate your future lifestyle costs. You can start by knowing what you’re spending now. To do this, track your spending. Try to keep a detailed and up-to-date budget. No matter how far away you are from retirement, think about how your life circumstances will change after retirement, and what impact that will have on your budget.

Since the majority of savers are not prepared enough to continue their current lifestyles in retirement — many seniors have nothing saved for retirement at all — it may be worth looking into benefit programs to manage your expenses. For example, medical savings programs may help cover certain medical expenses including premiums, deductibles, and more. The Low-Income Home Energy Assistance Program provides grants to help seniors cover the heating and cooling costs of their homes. Additional programs help cover the costs of housing, food, and more.

Finally, you may consider working part-time in retirement to boost your savings. In 2024, nearly 1 in 5 people age 65 or older are working or actively looking for work.