Workers Expect to Retire With Only Half the Recommended Savings

The amount each worker needs to retire varies greatly by individual and depends on the lifestyle they want in retirement. But in general, financial planners say workers need 80% of their pre-retirement income each year to cover expenses when they stop working.

A worker who makes the median annual salary of $64,220 and plans to spend 20 years in retirement would need about $1,027,520 in total savings, but the median amount workers currently have saved for retirement is just $210,000.

Young workers have decades to close the gap, but many may struggle to make up the $817,520 shortfall. Although income tends to grow over the course of a career, expenses rise as well. Higher home prices, child care costs, debt repayments, and the increasing cost of living can all make saving for retirement more difficult.

The median worker expects to retire with just $515,000, about half the recommended amount.

With total savings of just $515,000, a worker who wants to live on 80% of the median annual salary only has enough money to last 10 years. However, more than half of workers (52%) think they'll need their retirement savings to last at least 20 years, while a quarter (26%) think they'll need their savings to last at least 25 years.

A majority of workers don't need to crunch the numbers to know they're in trouble. Nearly two-thirds (65%) feel behind on saving, while more than half (54%) worry they will outlive their retirement funds.

For many, the solution is to keep working, even if 81% are concerned they won't be able to retire at their desired age.

About 38% think they won't be able to retire until their 70s or later, which is about 2x the percentage of workers (17%) who think they'll be able to retire before age 60.

Nearly 1 in 10 workers (9%) don't think they'll ever be able to retire.

Nearly Half of Workers Don't Expect to Have a Comfortable Retirement

Given how little in savings many workers have, about half (49%) don't think they'll have a comfortable retirement. The other half don't seem to understand the gravitas of their situation.

Financial guidance recommends saving over a million dollars for retirement, but workers think the average American needs only $620,000 to retire comfortably. With that amount, retirees would need to live on just $31,000 a year over the course of a 20-year retirement.

Workers' unrealistic expectations suggest many could benefit from more financial education, particularly when it comes to retirement planning. In fact, workers who have taken a personal finance course are better prepared for retirement and have more savings to show for it.

The 41% of workers who have taken a personal finance course have a median amount of $371,000 saved for retirement, $276,000 more than those who have not taken a personal finance course ($95,000) and $161,000 more than the overall respondent pool ($210,000).

Workers who have taken a financial education course not only have more savings, they also feel more equipped to make good investment decisions when it comes to their retirement. About 94% say they are confident in their decision-making, compared to 70% of those who have never taken a personal finance course.

That confidence ultimately leads to a more positive retirement outlook. Workers with more financial education expect to retire with a median amount of $660,000 — $420,000 more than those who have not taken a personal finance course ($240,000) and $145,000 more than the overall respondent pool ($515,000).

1 in 3 Workers Have Reduced Retirement Contributions in the Past 12 Months

Many Americans are struggling to make ends meet as stubborn inflation increases the cost of everyday goods and services, but 82% of workers are still managing to set aside money for retirement.

However, 38% have reduced their contributions in the past 12 months, including 46% of Gen Z and 42% of millennials.

For many workers, these cutbacks are driven by financial necessity, rather than choice. Among those who have reduced their contributions, nearly half say it's because the cost of living is too high (45%), followed by high housing costs (32%), and high taxes (30%).

While some workers have reduced their retirement contributions to cover immediate expenses, others have gone a step further. Another 38% of workers — including 48% of Gen Z and 40% of millennials — have pulled money out of their retirement savings at some point, even at the risk of incurring taxes and early withdrawal penalties.

When workers dip into their retirement savings, they don't limit themselves to small withdrawals. More than two-thirds (69%) have withdrawn at least $10,000, while nearly half (47%) have withdrawn at least $25,000. A whopping 1 in 5 workers (19%) have pulled out $50,000 or more.

Although some workers use these substantial sums to pay for an emergency (28%), medical bills (25%), home repairs (20%), or other one-time expenses, the most common reason workers raid their retirement savings is to cover day-to-day living costs (30%).

Borrowing money from retirement accounts is possible for those who need the money, but it's generally discouraged. Those who make early withdrawals lose out on years of compounding growth, and 1 in 4 people (27%) who have pulled money out of their retirement savings end up regretting it.

1 in 5 Workers Have Never Saved for Retirement

As the cost of living continues to climb, not all workers have cash to spare for retirement. Nearly 1 in 5 (18%) say they have never saved for retirement.

Like those who have reduced their contributions, these workers say high living costs are the most common reason they can't save for retirement (48%). However, those who have never saved (38%) are more likely than the former group (28%) to report low income as a barrier to saving.

However, a low income is a common barrier to saving for retirement, even among those who are saving. About 42% of all workers don't think their income is high enough to adequately save for retirement.

More than 1 in 3 workers (34%) say a higher income would help their retirement outlook the most, a percentage that rises to 39% among those who have never saved.

Similarly, young workers still building their careers and paying down student debt think earning more money would have the greatest impact. About 42% of Gen Z and 36% of millennials say their retirement outlook would improve the most from higher wages, while boomers say the same about stronger Social Security benefits (34%).

After higher wages, workers say the following would have the greatest impact on their retirement:

• Stronger Social Security benefits (17%)
• Lower taxes (16%)
• Better employee retirement benefits (13%)
• Lower housing costs (13%)
• Debt forgiveness/reduction (8%)

Homeowners Have Saved 6x More for Retirement Than Non-Homeowners

Workers' ability to save for retirement is often tied to broader indicators of financial stability, including homeownership.

To afford a home, homeowners likely have stable, high-paying jobs that put them in a better position to save for retirement. About 89% of homeowners are saving for retirement, compared with 63% of non-homeowners.

Not only is this group more likely to save, they are also able to save more. Homeowners have $285,000 saved for retirement — $240,000 more than non-homeowners ($45,000) and $75,000 more than the overall pool of workers ($210,000).

Homeowners also expect to retire with more in total savings: $600,000, compared with $170,000 among non-homeowners and $515,000 among the overall respondent pool.

It's no wonder nearly 2 in 3 workers (66%) believe homeownership is necessary to retire comfortably.

Homeownership provides a sense of security in retirement when income is limited and uncertainty is high, and it's also a long-term asset that appreciates over time, giving homeowners an additional source of wealth to tap into.

Approximately 58% of homeowners plan to use their home to help fund their retirement.

Most commonly, 54% of homeowners plan to sell their home and downsize, using the profit to bolster their retirement savings. Meanwhile, nearly a third intend to sell their home and move in with family (30%), rent out their home for additional income (30%), or take out a reverse mortgage on their home (30%).

Data includes responses from 442 homeowners who plan to use their home to help fund their retirement. Source: Clever Real Estate Worker Retirement Funds Analysis, May 2026

These strategies, however, are far more common among younger homeowners than older ones. In fact, boomers (47%) are significantly more likely than millennials (19%) and Gen Z (9%) to say they do not plan to use their home as a retirement asset.

As the last generation to benefit from pensions and long stretches of stable employment that helped them build their savings, boomers may simply not need their home equity in retirement.

Almost 90% of Homeowners Say Housing Costs Impact Their Ability to Save for Retirement

Owning a home can be a major advantage, but it can just as easily be a financial burden. About 87% of homeowners say housing costs impact their ability to save for retirement.

Home values have risen dramatically since the pandemic, boosting homeowners' wealth but also driving up their property taxes, the housing expense most likely to hinder their ability to save for retirement.

Nearly half of homeowners (49%) say rising property taxes make it harder to save for retirement, especially when the amount owed each year is unpredictable.

Property taxes can be particularly painful for older adults who have more expensive homes, and consequently, higher tax bills to pay, even when they own their homes outright. Roughly 44% of boomers say property taxes impact their ability to save for retirement, compared to 40% of millennials and 34% of Gen Z.

For young homeowners, mortgage payments and down payments are the more pressing obstacles. About a third of millennials (34%) and Gen Z (34%) say mortgage payments hold them back from saving for retirement, nearly 3x the percentage of boomers (13%) who say the same.

Approximately 21% of millennials and 30% of Gen Z also say saving for a down payment prevents them from setting aside more for retirement, compared to just 3% of boomers.

These housing expenses don't just limit retirement savings. They also hinder homeowners' ability to make extra payments on their mortgage. Nearly 1 in 5 homeowners (18%) don't think they'll have their mortgage fully paid off by the time they retire, with the additional expense leaving many worse off financially than expected.

More Than 8 in 10 Workers Have Regrets About Their Retirement Savings

Retirement planning is all about preparing for the future, but many workers can't help dwelling on past mistakes. About 86% of workers have regrets about their retirement savings.

More than 1 in 3 workers (35%) wish they had started saving for retirement sooner, making it the most common regret.

Financial experts encourage workers to start saving for retirement as soon as possible so their money has time to grow, but nearly two-thirds of workers (63%) didn't start saving for retirement until they were at least 30 years old, and one-third (31%) didn't start saving until they were at least 40 years old.

Most concerningly, more than 1 in 4 boomers (26%) say they didn't start saving for retirement until they were at least 50 years old, missing out on decades of compound interest.

The top regrets workers have about their retirement savings are:

• Waiting too long to start saving (35%)
• Not contributing more (31%)
• Investing too conservatively (20%), compared with investing too aggressively (12%)
• Not increasing contributions after getting a raise (17%)
• Making early withdrawals (16%)

About 1 in 7 workers also regret that they didn't know how to save (14%) and didn't seek out professional advice (14%).

In the absence of financial education and guidance, workers fill the gap with whatever information is available — with AI emerging as a popular alternative source. In fact, 51% of millennials and 44% of Gen Z say they'd trust AI more than a financial consultant when making retirement planning decisions, 3x the percentage of boomers (15%) who say the same.

Yet retirement planning can be notoriously tricky with so many unknown variables, and not all information — whether found online or through family and friends — can be trusted. About 14% of workers regret following bad retirement advice, with the percentage jumping to 17% among millennials and 19% among Gen Z.

2 in 3 Workers Worry Social Security Funding Will Run Out Before They Retire

As life expectancies grow and everyday costs continue to climb, personal savings may not be enough to sustain workers in their later years.

For decades, workers were encouraged to rely on a three-part retirement strategy that included personal savings, pensions, and Social Security. But today, the traditional three-legged stool of retirement appears increasingly rickety.

One leg of the stool, pensions, have largely been replaced with 401(k)s and other retirement accounts that shift the responsibility of investing from the employer to the employee. Some companies match employee contributions up to a certain percentage, but others do not.

Workers are already struggling to save enough for retirement, and without an employer match, it can take even longer to reach the same financial milestones. It's no surprise, then, that 77% think employers should be required to offer a 401(k) match.

The percentage is even higher among young workers: 80% of millennials and 79% of Gen Z believe employers should be required to match 401(k) contributions, compared to 65% of boomers, who are more likely to still benefit from pensions.

Although many companies offer retirement plans and 401(k) matching contributions, nearly half of all workers (49%) think their employers are not doing enough to help them save for retirement.

As for Social Security, the program will be unable to pay full benefits by 2032 unless Congress intervenes, and many workers fear they won't receive allotments at all. Nearly 2 in 3 workers (66%) worry Social Security will run out of funds by the time they retire.

Despite the program's uncertain future, 63% of workers still plan to rely on Social Security as a source of income in retirement. That reliance, however, declines with each generation, dropping from 90% of boomers to just 53% of millennials and 46% of Gen Z.

Workers Blame the Government, Regardless of Party, for U.S. Retirement Challenges

With Social Security floundering and employers scaling back benefits, a majority of workers don't view their lack of retirement savings as a personal failure. They see it as a systemic one.

About 3 in 4 workers (75%) don't think individuals are most responsible for their own insufficient retirement savings. As the support systems intended to assist them in retirement erode, many believe employers, government policies, and other actors share the blame.

Workers are most likely to blame the federal government, regardless of party, for the country's growing retirement challenges (28%). Workers also view the federal government (30%) as the most responsible for mismanaging Social Security to the point where it will be unable to deliver full benefits by 2032.

Although workers see the retirement crisis as a bipartisan failure decades in the making, they're pointing the finger squarely at the Trump administration for current economic conditions that make it more difficult to save for their retirement.

About 90% of workers are concerned about inflation eroding their retirement savings, with 1 in 4 saying Trump's government is the most responsible for wages failing to keep pace with the cost of living (24%). Another quarter of workers blame Trump for sharp stock market swings that impact retirement savings tied to those investments (26%).

Only 10% of workers say the Biden administration is most to blame for each of those economic hardships.

Both presidents presided over an economy plagued by inflation and market volatility, but they have intensified under Trump.

Since the start of the Iran War, the inflation rate has climbed to 4.2% — the highest rate in nearly three years — and the stock index dipped 8% in the initial aftermath. The market has since rebounded, but Americans worry what further uncertainty could do to their retirement investments.

Young workers tend to view retirement challenges through a political lens, and the Trump administration bears the brunt of their frustration. While boomers (45%) say individuals are to blame for their lack of retirement savings, millennials (25%) and Gen Z (24%) say Trump is at fault.

Gen Z is Trump's harshest critic, blaming his government for all but one of a wide range of retirement issues. Even when it comes to workplace benefits, Gen Z says it's Trump's fault companies don't offer retirement plans or 401(k) matches, while millennials and boomers blame employers.

Workers Are Looking Beyond Traditional Retirement Incomes

As the traditional three-legged stool of retirement becomes even more wobbly, workers have started supplementing their savings with additional sources of income.

Although they still plan to draw from personal investment accounts (65%), Social Security (63%), and pensions (27%), they also plan to depend on part-time wages (34%), cryptocurrency (19%), and real estate properties (19%).

As with Social Security, young workers are less likely to rely on traditional sources of retirement income. About 70% of boomers expect to receive income from retirement accounts, but just 64% of millennials and 58% of Gen Z say the same. Similarly, 34% of boomers are counting on a pension, compared to 26% of millennials and 27% of Gen Z.

Young workers are, instead, betting on alternative investments to carry them through retirement. More than a quarter of Gen Z (26%) and millennials (26%) expect cryptocurrency to provide retirement income — 8x the percentage of boomers (3%) who say the same. Millennials (22%) and Gen Z (19%) are also twice as likely as boomers (10%) to expect income from real estate properties.

If their savings fall short, young workers expect to lean heavily on government assistance and financial support from family to fill the gap. About 20% of millennials and 21% of Gen Z expect government assistance beyond Social Security, more than double the 8% of boomers who say the same.

What's more, about a quarter of millennials and Gen Z expect financial support from their children (19% and 22%, respectively), while a third plan to rely on their partner's savings (33% and 31%, respectively). Just 4% boomers expect financial help from their children, and only 21% plan to draw from a partner's savings.

Although young workers expect others to share their wealth in retirement, many don't plan to do so themselves. About 1 in 4 millennials (25%) and 1 in 3 zoomers (31%) say they would not share their retirement savings with a partner.

2 in 3 Workers Would Not Cut Current Spending on Travel, Streaming Services to Retire More Comfortably

Workers anticipate drawing income from a wide range of sources in retirement, but most have not developed a plan for achieving those goals. About 2 in 3 workers (67%) do not have a detailed, long-term retirement plan, with 1 in 5 workers (20%) saying they don't have a plan at all.

This lack of preparation has 83% of workers concerned they will have to lower their standard of living in retirement. But scaling back today to have a better retirement isn't a sacrifice many are prepared to make.

Even if doing so could help them retire more comfortably, workers say they wouldn't give up their current spending on:

• Hobbies and leisure activities (76%)
• Subscription and streaming services (69%)
• Travel (67%)
• Shopping for nonessential goods (65%)
• Entertainment (64%)
• Dining out (62%)

Workers may refuse to give up these small luxuries, but many would make far more significant sacrifices to retire comfortably.

About 1 in 4 workers (25%) would stay at a job they hate to become fully vested in retirement benefits. Meanwhile, 1 in 8 (13%) would marry someone for financial security, and 1 in 10 (11%) would stay in an unhappy marriage to secure a comfortable retirement.