More Americans are retiring than ever, but are they financially ready? Vanguard analyzes household balance sheets to project retirement savings. 2 in 5 Americans are on track, but the typical retiree faces a $5,000 annual spending shortfall. Defined contribution plans are crucial, with access increasing and improving retirement readiness.

Progress is seen across generations, with 40% of baby boomers and 47% of Gen Z on track for retirement. Millennials face challenges with rising debt, inflation, and costs. Employers now auto-enroll workers in retirement plans, benefiting younger workers with stronger outcomes.

Despite progress, there are gaps for lower-income Americans. Only one in six baby boomers earning $22,000 or less are on track for retirement. Social Security will replace most income, but many struggle to save enough. Worried about your retirement? Know your numbers and consider these four steps.

Read more at Yahoo Finance: Despite shortfalls, America’s retirement picture can improve