Four in 10 Americans have no retirement savings — a slow-moving crisis that spans every generation. 57% of young workers aged 18 to 34 have no retirement plan, 42% of mid-career workers aged 34 to 54 have no retirement account, and 40% of older workers aged 55 to 65 still have nothing saved. 29% of current retirees report having no savings. Americans believe they need approximately $2.1 million to retire comfortably, but 62% have less than $150,000 saved and the average retirement account holds approximately $288,700. The number of Americans working past age 65 has quadrupled since the 1980s. The average Social Security benefit is $2,071 per month against $61,000 in typical annual expenses.
America’s Retirement Crisis
President Donald Trump attends UFC 314 at the Kaseya Center in Miami, Florida, Saturday, April 12, 2025. (Official White House Photo by Daniel Torok)
The traditional expectation is that you retire in your mid-60s, with sufficient savings to enjoy a comfortable “golden years” period.
But the reality for many Americans is that this expectation is out of reach; four in ten Americans lack retirement savings, a problem that spans all generations.
The result is a slow-moving retirement crisis afflicting the entire country, in which large portions of the workforce are nearing retirement with little or no financial cushion.
By the Numbers
The numbers are staggering. 57% of young workers aged 18 to 34 have no retirement plan.
About 42 percent of mid-career workers aged 34 to 54 have no retirement account. And 40 percent of older workers, aged 55 to 65, still have no retirement savings.
Across the entire workforce, nearly half the population has no access to or participation in retirement planning. And among retirees, 29 percent report having no savings. So this is not just a young person problem—it is a problem that persists for many Americans into late career.
Why Aren’t People Saving?
Access to retirement plans is a major structural driver of the crisis; 42 percent of workers lack access to an employer-based plan. Among part-time workers, that number spikes to 79 percent lacking access. Meanwhile, the cost of living has increased.
Housing, food, and childcare consume the majority of people’s incomes.
Eighty-seven percent of Americans say rising costs of day-to-day life are limiting their ability to save for retirement.
Fifty-eight percent of Americans cite debt as a primary barrier to retirement savings.
And, of course, inflation is a problem; 90 percent of older workers say it is reshaping their retirement outlook. The problem is that saving for retirement often requires proactive behavior, but the current environment leaves people with no margin whatsoever.
The Emergency Tap
Thirty-eight percent of workers have withdrawn retirement funds.
Fifty percent of Generation Z have tapped funds; 31 percent of Millennials, 41 percent of Generation X, and Boomers.
The reasons: emergencies, debt, and covering basic expenses.
Hardship withdrawals are rising year over year, leaving more Americans without adequate retirement savings.
The current economic climate is forcing Americans to treat their retirement accounts as emergency funds—not the long-term investments they were initially designed to be.
The Savings Gap
Most Americans believe they need about $2.1 million to retire comfortably.
But in reality, 62 percent have less than $150,000 saved.
One estimate holds that the average retirement savings account holds $288,700.
Yet the projected healthcare cost per couple is about $950,000. This gap has a deterrent psychological effect; goals feel unattainable, leading to disengagement.
The fact is that the gap between expectations and reality is so large that it likely discourages many people from saving at all.
What Happens Without Savings
Americans are delaying their retirement and “working till they drop.”
The number of people working past 65 has quadrupled since the 1980s.
Social Security dependence has spiked, too—but the average benefit is only $2,071 per month, while the typical person has $61,000 per year in expenses.
As a result, many Americans are downgrading their lifestyle, with smaller housing or increased reliance on family.
Healthcare vulnerability is spiking, too, with many older Americans forced into the Medicaid system. The takeaway is that retirement is no longer about leisure—it’s about survival.
Twenty percent of current retirees are struggling. Only five percent are living as they intended. Many retirees live in fear, with 2 in 5 reporting they worry about running out of money. So the retirement crisis is not hypothetical—it is already happening.
What’s Next?
Pension access has disappeared for many Americans, exacerbating the retirement crisis.
One policy response is to expand auto-IRA programs and increase access for more Americans.
Social Security reform proposals have also been floated. But the fix won’t be easy, as life expectancy increases and healthcare costs rise steadily.
So life is getting longer and more expensive, just as more Americans are struggling to save.
The problem is expected to worsen as Generation X nears retirement. The system is already under strain and is likely to get worse before it improves.
The result feels like the erosion of the American dream, where retirement is no longer something to look forward to but something to fear.
About the Author: Harrison Kass
Harrison Kass is a writer and attorney focused on national security, technology, and political culture. His work has appeared in City Journal, The Hill, Quillette, The Spectator, and The Cipher Brief. He holds a JD from the University of Oregon and a master’s in Global & Joint Program Studies from NYU. More at harrisonkass.com.
