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Flashback Finance: The Cost of Retiring the Year You Were Born

Just like groceries, gas and home prices, the cost of retiring is subject to inflation. Here is a look at what it cost to retire in the year you were born.

By Donna LeValley published 29 January 2026 in Features

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When boomers and most Gen Xers entered the world, the "retirement dream" was a standardized, almost guaranteed transition. From the 1950s through the 1970s, part of the financial burden of aging was shouldered by employers through defined-benefit pensions — a "thank you" for decades of hard work and loyalty. For those born in the mid-century era, the idea of a "401(k)" didn't even exist.

But as we stand in 2026, the goalposts haven't just moved; they’ve been relocated to an entirely different stadium. For boomers and Gen X, the challenge is unique: you are the "bridge generation," tasked with funding a 30-year retirement using modern tools while navigating a cost of living that has soared since your first paycheck.

Inflation can touch any part of our lives. We feel it more when we check out at the grocery store or after a fill-up at the gas station — but did you ever think about retirement inflation?

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We examine national average wages and retirement costs from 1946 (the start of the baby boomer generation) through 1996 (the end of the millennial generation). And don't worry, Gen X, we didn't forget you.

These estimates use the Fidelity Investments formula that recommends aiming to save 10 times your pre-retirement income by age 67. GOBankingRates calculated what 10 times income would look like using data on average annual wages provided by the Social Security Administration.

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Baby boomers

Born into the post-WWII economic expansion, boomers were the last generation to widely benefit from corporate pensions. They grew up in an era of unprecedented prosperity, where a single income could often support a family and buy a home. For the "Silver Tsunami" generation, the year 2026 marks a pivotal transition as the oldest boomers turn 80 and the youngest reach the average retirement age of 62. They are transitioning into a retirement that is longer and more active than any previous generation.

Swipe to scroll horizontallyBaby boomers: Born 1946–1964 (post-war boom)

Birth Year

Cost to retire:

National average wage

1946

$14,140

$1,414

1947

$16,020

$1,602

1948

$17,160

$1,716

1949

$17,480

$1,748

1950

$18,190

$1,819

1951

$27,992

$2,799

1952

$29,733

$2,973

1953

$31,394

$3,139

1954

$31,556

$3,156

1955

$33,014

$3,301

1956

$35,324

$3,532

1957

$36,417

$3,642

1958

$36,738

$3,674

1959

$38,558

$3,856

1960

$40,071

$4,007

1961

$40,867

$4,087

1962

$42,914

$4,291

1963

$43,966

$4,397

1964

$45,763

$4,576

Row 19 - Cell 0 Row 19 - Cell 1 Row 19 - Cell 2

The old pictures of Japanese one year old girl.

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Gen X

Often called the "latchkey kids," Gen X came of age during the shift from pensions to 401(k)s, making them the first generation to shoulder the full weight of their own retirement planning. As the oldest members of Gen X turn 61 in 2026, they are the current "sandwich generation," squeezed between the financial needs of their adult children and the care of their aging boomer parents.

Known for their skepticism and self-reliance, they’ve weathered multiple market crashes, from the 2000 Dot-com bubble to the 2008 Great Recession. In 2026, they are in their peak "catch-up" years, racing to bridge any savings gap before they hit the finish line.

Swipe to scroll horizontallyGeneration X (Gen X): Born 1965–1980

Birth Year

Cost to retire:

National average wage:

1965

$46,587

$4,659

1966

$49,384

$4,938

1967

$52,134

$5,213

1968

$55,718

$5,572

1969

$58,938

$5,894

1970

$61,862

$6,186

1971

$64,971

$6,497

1972

$71,338

$7,134

1973

$75,802

$7,580

1974

$80,308

$8,031

1975

$86,309

$8,631

1976

$92,265

$9,226

1977

$97,794

$9,779

1978

$105,560

$10,556

1979

$114,795

$11,479

1980

$125,135

$12,513

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Millennials

As the first true digital natives, millennials entered a workforce defined by the "gig economy" and the massive weight of student loan debt. In 2026, the primary obstacle isn't a lack of effort — it's the "homeownership vs. retirement" conundrum. A recent survey by Nationwide Retirement Institute shows that 58% of millennials believe they can afford a mortgage or a retirement fund, but not both.

Despite these hurdles, they are the most educated generation and the most likely to use tech-driven "micro-investing" and AI tools to manage their wealth. For them, retirement isn't just about a gold watch; it's about achieving "Financial Independence" (FIRE) early enough to enjoy a life defined by experiences rather than possessions.

Swipe to scroll horizontallyMillennials (or Generation Y): Born 1981–1996

Birth Year

Cost to retire:

National average wage:

1981

$137,731

$13,773

1982

$145,313

$14,531

1983

$152,392

$15,239

1984

$161,351

$16,135

1985

$168,225

$16,823

1986

$173,218

$17,322

1987

$184,265

$18,427

1988

$193,340

$19,334

1989

$200,996

$20,100

1990

$210,280

$21,028

1991

$218,116

$21,812

1992

$229,354

$22,935

1993

$231,327

$23,133

1994

$237,535

$23,754

1995

$247,057

$24,706

1996

$259,139

$25,914

Row 17 - Cell 0 Row 17 - Cell 1 Row 17 - Cell 2

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Costs rarely go down

Ultimately, the math of retirement has changed since the year you were born. We’ve moved from a world of "set it and forget it" pensions to a high-stakes era of personal responsibility and self-funded retirement accounts.

Looking back at the cost of retirement during your birth year isn't meant to cause regret, but to provide clarity. By acknowledging that the "dream salary" of your youth is now likely the bare minimum for a modest retirement, you can stop pining for the world as it was and start mastering the financial realities of the world as it is.

Building a dream retirement shouldn’t feel like a second job. Subscribe to our free newsletter, twice-weekly newsletter, Retirement Tips.

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Donna LeValleyRetirement Writer

Donna joined Kiplinger as a personal finance writer in 2023. She spent more than a decade as the contributing editor of J.K.Lasser's Your Income Tax Guide and edited state specific legal treatises at ALM Media. She has shared her expertise as a guest on Bloomberg, CNN, Fox, NPR, CNBC and many other media outlets around the nation. She is a graduate of Brooklyn Law School and the University at Buffalo.