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Retirement readiness is a murky concept.

Between the dire predictions about Social Security, the headlines about “magic” retirement savings numbers, and the various gauges and rules of thumb, it can be hard to make sense of it all. And for many people, it’s difficult enough just finding surplus income to tuck away.

So let’s start with a basic premise underlying a new study by Vanguard: Most of us probably want to maintain our current lifestyle in retirement. In other words, we want to have the resources to cover roughly the same expenses even when we’ve stopped working.

And if we assume this, only 42% of Americans are on track to have enough resources, Vanguard found. The other 58% will fall short, with those earning a typical salary (a median per-capita income of $51,000) having to cut their spending by an estimated $5,000 a year, or 13%, during their retirement.

Vanguard’s Retirement Readiness Model factored in Social Security payments, mortality rates, retirement saving rates, historical spending patterns, market return forecasts, and other asset allocation data across various demographic groups. And it revealed several other interesting findings:

•  Access to a 401(k) makes a big difference: Workers with access to a workplace retirement plan are almost twice as likely to be on track for “readiness” — 54% of workers with access are on track, compared with 28% of those without. (If every worker in the U.S. had access, 61% would be on track.)

•  The outlook is brighter for younger people: Compared with baby boomers and Gen X, millennials and Gen Z are more likely to be on track, thanks to stronger 401(k) adoption and plan features like auto-enrollment. The percentages are 47% for Gen Z, 42% for Millennials, 41% for Gen X, and 40% for boomers.

•  Debt is an obstacle: The typical millennial age 35-38 has about $12,000 in nonhousing debt (including credit cards, student loans, auto loans), about double what boomers carried at the same age. That knocks nearly 1 in 10 millennials off the path to retirement readiness.

•  Home equity could help many baby boomers: Many low- to middle-income baby boomers nearing retirement won’t be able to maintain their lifestyle without tapping into their home equity to close the gap. (Downsizing their home or selling and becoming renters, for instance.) However, among younger generations, property prices and mortgage rates can often put homeownership out of reach.

So what?

There’s a lot of doom and gloom surrounding retirement readiness, but the Vanguard analysis has some bright spots. For one, an annual shortfall of $5,000 for the typical earner could be worse. “Whether such a reduction would constitute a significant lifestyle change depends on individual needs and expectations,” the Vanguard researchers note.

Plus, the better outlook for young people would suggest society at large is getting better at retirement security. And the younger you are, the more time you have to get on track, if you’re not already.

There’s no doubt it can be hard to carve out surplus income, especially given the rising cost of living, a fragile job market, student debt, and other obligations. But the sooner you start and the more consistently you put money away, the better off you’ll be — even if you have to begin with a small contribution.

And perhaps most importantly, if your job doesn’t offer a 401(k) or similar plan, save on your own. You can use an IRA or traditional brokerage account (which can be roboadvised, if you’d like to be hands off.) You can even set up a 401(k)-like direct deposit. Research shows that people are 15 times more likely to save for their retirement if they have money deducted from their paychecks.

Related Reading

Financial Experts Say There's No Such Thing as a Single 'Magic' Retirement Number (Fortune via MSN)

2024 Retirement Readiness Survey: How Americans Are Preparing (SoFi)

10 Things Retirees Should Stop Spending On Now (AARP)

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