How To Build Wealth If You’re Already Behind

In 2025, 53% of U.S. adults say they are behind on retirement savings, and 69% of workers doubt they will ever retire comfortably. The median 65-year-old has only $185,000 saved — enough to generate about $7,400 a year at a 4% withdrawal rate. The Money Guy hosts Brian Preston and Bo Hanson walk through what to do — and what not to do — if you are in this position, using concrete math, behavioral guardrails, and a case study they call "Late Start Larry."

Where You Actually Stand

The hosts first establish a realistic benchmark. Using a 25-times-annual-expenses rule and an 80% income replacement assumption, they calculate that a retiree needs roughly 20 times their gross income saved. By that standard, a 30-year-old earning the median household income of $97,000 should have about $97,000 saved. By 40, the target is $321,000; by 50, $737,000; by 60, $1.1 million; and by 65, about $1.4 million. The gap between those targets and the actual median savings ($200,000 at age 65) is enormous. The point is not to shame anyone — it is to show that the typical American is genuinely behind, and that catching up requires honest math, not wishful thinking.

Three Traps to Avoid