Only 1 in 5 workers nearing retirement are financially on track: "It will come down to hard choices"

The rule of thumb for people who are 55 and have another decade of work before reaching the traditional retirement age is to have already socked away about eight times their salary in their retirement accounts. But the median savings of today's 55-year-olds is just $50,000, far from enough to fund a secure old age, according to a new study.

In fact, only 1 in 5 people who are 55 years old have $447,000 or more saved for retirement, or eight times the average U.S. salary, Prudential Financial's 2024 Pulse of the American Retiree Survey found. The report jibes with another recent study on Gen X's retirement readiness, which found half of those surveyed believe it would take a "miracle" for them to be able to retire.

The new findings come as the oldest members of Generation X, or people born between 1965 to 1980, are now entering their pre-retirement years, giving them a short period in which they can shore up their savings before stepping back from work. But many who are already lagging behind those savings milestones may end up unprepared — at least financially — for retirement, given that it would likely be difficult, if not impossible, to build a sizeable nest egg in a just a few years.