Generation Jones grew up during economic, political and technical upheaval, from Watergate to the Iran hostage crisis, inflation to a crippling oil shock. The idealism of older boomers gave way to pragmatism (the awful “Me Generation” moniker) and a fascination with technology. Blockbusters like the “Star Wars” trilogy, “Rocky” and “Jaws” chronicled the scrappy little guy winning against a bully or the establishment by being gutsier or smarter.
Now nearing or in retirement, this generation once again faces disruption.
Not familiar with Generation Jones? This micro-generation was born between 1954 and 1965, sandwiched between older baby boomers and Gen X. This demographic cohort, coined by cultural commentator Jonathan Pontell, missed out on the hippie era that culminated at the Woodstock music festival. And even though younger Generation Jones members watched “Happy Days,” the disillusionment and pessimism stemming from their not-so-happy economic experiences in early adulthood stick with them to this day.
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“Every generation and micro-generation comes with their own unique biases, experiences and baggage,” says Susan Green, senior financial adviser at Wescott Financial Advisory Group. “It can be hard to move on from that.”
Today, Generation Jones, who are aged in the range of 61 to 72, are still Jonesing to get their financial house in order. And they are entering retirement at a time of unprecedented technological change with AI’s advantages and threats.
Key retirement questions for Generation Jones
Their age range puts them at a pivotal point in the transition to retirement and planning for their golden years. The youngest Jonesers, now 61, are in the final stretch of their working years. They must choose whether to turn Social Security on early at age 62 and take a 30% benefit cut, or wait until full retirement age (FRA) to receive their full benefit, or delay taking Social Security until age 70, which boosts their benefit by 8% for each year after FRA.
Medicare enrollment begins at age 65, another major milestone Generation Jones must navigate. They must also map out a plan for required minimum distributions (RMDs), which kick in at age 73 (or age 75 for those born in 1960 or later) for traditional retirement accounts, and for drawing down their retirement account savings.
“They’re at a very crucial stage for planning,” says Dave Sharpe, a wealth manager at Savvy Advisors. “A lot of decision windows open up between age 62 and 73.”
|
Generation Jones Birth Years |
Current Age (in 2026) |
Full Retirement Age (FRA) |
RMD Age |
|---|---|---|---|
|
1954 – 1959 |
67 to 72 |
66 (plus specific months) |
73 |
|
1960 – 1965 |
61 to 66 |
67 |
75 |
Fortunately, Generation Jones has socked away some money, thanks to workplace retirement plans like 401(k)s and individual retirement accounts (IRAs). Jonesers wondering if their net worth and retirement balances are sufficient to fund a secure retirement can get a baseline of where they stand by comparing their personal bottom line with peers in their age group.
While there is no specific data set available for this micro-generation, analyzing net worth and 401(k) and IRA balances by age provides good guesstimates.
What is the net worth of Generation Jones?
Let’s start with net worth by decades. Since Generation Jones ranges in age from 61 to 72, the best snapshot is looking at the net worth of people in their 60s.
There’s good news and not-so-good news, depending on whether you’re looking at averages (which include high earners and more financially successful folks from Generation Jones) or median numbers (which strip out high earners and low earners and reflect a midpoint number).
The average net worth of people in their 60s is $1,577,907, a hefty seven-figure nest egg that suggests a solid retirement for a large swath of Generation Jones, according to data from the Empower Personal Dashboard as of January 2026. But the median net worth of only $274,564 paints a less robust picture of Generation Jones’ retirement readiness.
Net worth starts to decline when Generation Jones reaches their 70s, as they begin taking distributions from their retirement accounts. The average net worth for people in their 70s shrinks to $1.46 million and the median net worth drops to $220,067, according to Empower.
|
Age by decade |
Average net worth |
Median net worth |
|
20s |
$139,243 |
$6,600 |
|
30s |
$325,952 |
$23,093 |
|
40s |
$750,578 |
$68,698 |
|
50s |
$1,364,050 |
$180,227 |
|
60s |
$1,577,907 |
$274,564 |
|
70s |
$1,456,151 |
$220,067 |
|
80s |
$1,331,143 |
$220,741 |
|
90s |
$1,267,467 |
$205,737 |
*Source: *Anonymized user data from the Empower Personal Dashboard as of January, 2026.
The financial picture of Generation Jones looks similar, if not a bit rosier, using net worth data from the Federal Reserve. The 55 to 64 age cohort (which includes the youngest members of Generation Jones, aged 61 to 64) has an average net worth of $1.57 million, and the 65 to 74 age group (which includes those in Generation Jones, aged 65 to 72) has a net worth of $1.79 million.
When it comes to median net worth, the Fed data show Generation Jones in a stronger yet still vulnerable position. People aged 55 to 64 have a median net worth of $364,500 and those between the ages of 65 to 74 clock in at $409,900.
|
Age Range |
Average Net Worth |
Median Net Worth |
|
Younger than 35 |
$183,500 |
$39,000 |
|
35 – 44 |
$549,600 |
$135,600 |
|
45 – 54 |
$975,800 |
$247,200 |
|
55 – 64 |
$1,566,900 |
$364,500 |
|
65 – 74 |
$1,794,600 |
$409,900 |
|
75 or older |
$1,624,100 |
$335,600 |
|
All ages |
$1,063,700 |
$192,900 |
*Source: Source: Federal Reserve “Survey of Consumer Finances (2022) (PDF).”
What is average 401(k) balance of Generation Jones?
When you look at the financial might of Generation Jones through the lens of the average 401(k) balance, the picture looks less optimistic. The average 401(k) balance for plan participants in their 60s was just $269,100, and $273,100 for retirement savers in their 70s, according to Fidelity Investments’ 4Q25 Retirement Analysis.
|
Age by decade |
Average 401(k) balance |
|---|---|
|
20s |
$21,200 |
|
30s |
$69,000 |
|
40s |
$145,700 |
|
50s |
$246,700 |
|
60s |
$269,100 |
|
70s |
$273,100 |
*Source: Source: Fidelity Investments 4Q25 Retirement Analysis
Crowds line up outside a movie theater to see “Jaws” on August 10, 1975.
(Image credit: Bettmann Archive/Getty Images)
Key financial planning decisions for Generation Jones
Since Generation Jones includes pre-retirees, recent retirees and early retirees, there are a lot of important planning decisions to consider. “There are so many things happening in quick succession and a lot of decisions that have to be made,” says Green. Generation Jones is transitioning from a period in their lives when they receive a regular paycheck to paying themselves from the assets they have built up in savings over their working years.
Key financial decisions that must be made include:
Social Security claiming decision.
By virtue of their age (61 to 72), Generation Jones has to make the all-important decision about when to start Social Security, which provides a guaranteed monthly income for life. This financial decision not only determines when they’ll start receiving a check but also the size of the monthly payment.
Whether to start benefits at age 62, full retirement age (FRA is 67 for those born in 1960 or later) or delay until age 70, depends on whether one needs the money, life expectancy guesstimates, and health status. “There are a lot of factors that are going to influence the decision,” says Green.
The youngest members of Generation Jones can start taking Social Security as early as age 62. The downside of taking benefits this early is the benefit shrinks by 30% permanently over one’s lifetime.
If you’ve stopped working and need Social Security to make ends meet, then taking benefits early despite the lower payout may be necessary. “It may be less of a decision and more of a necessity to turn Social Security on,” says Green. Similarly, if you’re in poor health and expect a shorter lifespan, turning benefits on early and maximizing your benefits in the here and now may be the way to go. “Everybody is going to pass away, and though we don’t know when, we can at least make some educated decisions,” says Green.
For those with a family history of longevity, however, holding off until FRA and receiving 100% of earned benefits, or delaying benefits until age 70 to get an 8% benefit increase for each year after FRA, makes more financial sense. Be sure to calculate the so-called “breakeven point,” or the point at which the later-claimed benefits catch up to and exceed the value of taking benefits earlier. “The breakeven cost analysis is one of the most important things to look at,” says Sharpe.
If you opt to wait until 70 to claim benefits, make sure you have enough assets to build a so-called “Social Security bridge.” This strategy addresses the funding gap that results from not receiving a Social Security check in the years before you start taking benefits. If you’re pulling money from retirement accounts, the more tax-efficient your withdrawals are, the better. “What assets can you pull from without creating a huge tax burden?” says Green. Cash withdrawals are tax-free, as are qualified withdrawals from Roth retirement accounts. Taxable brokerage accounts benefit from lower capital gains rates of 0%, 15% and 20%. Traditional retirement accounts are taxed at regular income tax rates, which range from 10% to 37%. Work with your financial advisor to map out the most tax-efficient withdrawal strategy.
Sylvester Stallone’s character trains by punching meat in the 1976 film, “Rocky.”
(Image credit: Screen Archives/Getty Images)
Managing Medicare premiums
While Medicare eligibility begins at age 65, it’s important to start planning before then. The main reason is that Medicare is not free, and your premiums for Medicare Part B (medical insurance) and Medicare Part D (prescription drug coverage) could spike if your taxable income tops certain income thresholds. These monthly surcharges, which are in addition to standard premiums, are called IRMAA, which stands for “income-related monthly adjustment amount.”
Planning is so important because the surcharge is based on income calculations with a two-year lag. So, whether you pay an IRMAA surcharge in a given year depends on your tax returns from two years ago. Any surcharges for 2027, for example, will be based on your 2025 tax return.
“So, the decisions you make at age 62 or 63 have a big impact on Medicare costs,” says Sharpe. “Higher Medicare costs for people who aren’t expecting them can be devastating to those not prepared to pay the surcharge.”
Members of Generation Jones who have $1 million or more in their 401(k)s are particularly vulnerable to IRMAA surcharges because their seven-digit portfolios can lead to high RMDs, which could push their income above the IRMAA income thresholds.
Retirement fund distribution strategies.
Generation Jones must also come up with a tax-efficient retirement plan distribution strategy that doesn’t result in generating so much income that they bump up to a higher tax bracket, Sharpe adds.
To avoid massive RMDs, Sharpe recommends taking some distributions from 401(k)s and IRAs in the years leading up to age 73 or 75, when RMDs kick in, as this will lower the account balance and reduce the RMDs.
He also recommends that Generation Jones run the numbers to see whether they should convert money from traditional 401(k)s, which tax withdrawals as ordinary income, to Roth accounts (a “Roth conversion”). You may withdraw from Roths tax-free as long as two conditions are met. First, you must be at least 59½ years old to avoid an early withdrawal penalty. Since all of the Jonesers are at least 61, the requirement is moot. Second, the “5-year rule” still applies, meaning they will face penalties when withdrawing any earnings (not contributions) if the account has been open less than 5 years.
Of course, when it comes to a retirement portfolio, if a member of Generation Jones is behind in their savings, there is still time to play catch-up by maxing out their workplace retirement account or IRA and also taking advantage of catch-up matching contributions available to anyone over age 50.
In 2026, the IRS allows 401(k) contributions up to $24,500, standard catch-up contributions of $8,000, or a special “super catch-up” limit of $11,250 for savers aged 60 to 63. The maximum IRA contribution in 2026 is $7,500, with a $1,100 catch-up for those 50 and older. Another benefit of saving more in traditional retirement accounts funded with pre-tax dollars is that it reduces taxable income, which could help savers stay below income thresholds such as IRMAA and avoid bumping up to a higher tax bracket.
Members of Generation Jones who still need growth in their portfolios should avoid getting too conservative, taking too little risk and investing only in low-yielding assets like cash and bonds, adds Green. “There’s a long runway in retirement and you still need money (in stocks) working harder for you,” says Green.
“There are definitely ways to catch up and strategies to lower your taxable income,” says Sharpe.
