Retirement Finances in 2025: Half Worry They’ll Outlive Their Savings

Half of Retirees Didn’t Save Enough | Many Retirees Unprepared to Stop Working | Two-Thirds See U.S Retirement Crisis | Social Security and Other Retirement Income | Retired Men vs. Retired Women | Retiree Housing Costs | Methodology | FAQ

For many, retirement is a fundamental part of the American dream. After a lifetime of hard work and contributions to society, they feel entitled to enjoy their golden years in a comfortable, dignified way, spending time doing the things that make them happy. 

However, there’s one all-too-common stumbling block that can turn this dream into a nightmare: money. With the cost of just about everything increasing, working Americans have to save more and more for any hope of retiring, while those currently retired must stretch their dollars further and further to ensure they can support themselves for the rest of their lives. 

Unfortunately, not all are successful. New Clever research finds that nearly half of retirees (43%) say they don’t have enough savings for a comfortable retirement, with over a quarter (27%) admitting they have no retirement savings left at all. At the same time, more than half of retirees (53%) say they prioritize preserving their finances over enjoying retirement. 

Meanwhile, almost 2 in 3 retirees (63%) think the United States is in a retirement crisis. 

Those are among the most significant findings from Clever’s survey of 1,000 retired Americans with a current median age of 70 and a median retirement age of 62. 

Their responses paint a clear picture of American retirees, with roughly half feeling like they didn’t prepare adequately for retirement, don’t have enough saved, struggle with bills, and otherwise can’t enjoy the final chapter of their lives for financial reasons.

Almost Half of Retirees Believe They Haven’t Saved Enough for a Comfortable Retirement

For most Americans, it’s not enough to just give up their job. They’d like to enjoy a retirement with the quality of life they feel they deserve. However, nearly half of retirees (43%) say they don’t have enough saved for a comfortable retirement, and almost 1 in 3 (29%) are ashamed of the amount of retirement savings they have. 

Over a third (36%) reveal they’ve spent their savings faster than expected, and 43% believe they should have managed their money better after retiring.

"Plan on the unexpected. Inflation has caused me to dip into my savings to help pay for food, gas, and home energy costs." 

— Male retiree from Michigan

About half of retirees (44%) struggle with everyday bills and expenses, from groceries (24%) and utilities (17%) to paying down credit cards (20%). That forces 58% to stick to a strict budget, while over two-thirds (69%) say they’re spending less on non-essentials since retiring. 

For a significant number of retirees, tightening their belts isn’t enough. Well over 1 in 3 (39%) say they’ve seen their standard of living decrease in retirement. 

With many retirees living longer than ever, the prospect of surviving for decades on a fixed income looms large. Roughly 1 in 3 (30%) say they’ve already spent too much of their retirement savings, and about half (45%) worry they will outlive their money.

Troublingly, 53% admit they have no plan if their savings run out, and 43% would rather die than run out of money. A grim 1 in 4 (24%) don’t even believe they will have enough left to cover their funeral expenses. 

Almost All Retirees Think People Underestimate the Cost to Retire

Americans generally know retiring requires quite a bit of cash, but many are still far off from the true number — even among those who are already retired. 

Nearly every retiree (92%) felt that people underestimate how much money is needed to retire comfortably. Despite believing this, they still come up short when asked to gauge how much a typical person requires. 

Retirees believe the average American needs $580,000 to retire, up from $550,000 in 2024. 

The amount needed will vary from person to person based on lifestyle. However, a common rule of thumb is to save at least 10x your annual income. 

Based on a median weekly full-time wage of $1,165, as reported by the Bureau of Labor Statistics, the median full-time worker would need to save $605,800 to retire comfortably. The average retiree surveyed by Clever has just $308,040 saved, barely half the recommended amount. 

Although many have likely dipped into their nest egg over the years, the current median age of 70 and retirement age of 62 among respondents means most have been retired for just five to 10 years at most, compared to the average retirement length of 18 to 21 years. That means they’ll likely have to stretch their remaining cash carefully or risk running out at an even more advanced age. 

"Whatever money you think you should save for retirement ... double it." 

— Female retiree from Florida

Over 1 in 4 Retirees Have No Retirement Savings

The situation is particularly grim for the 27% of retirees who reveal they have no retirement savings.  

Living paycheck-to-paycheck (56%) before retiring was the most common reason for having no savings. Another 46% say their income was generally too low to save. However, over a third say they didn’t realize how much money they would need in retirement and ran out (37%) or had poor saving habits (36%). 

About 31% blame their complete lack of retirement savings on bills for unexpected expenses, such as medical or legal costs. A lack of investing and financial knowledge is also common among those without any savings in retirement. Over a quarter (29%) thought they could live solely on Social Security, and 28% admit they didn’t take the initiative to properly set up their finances for retirement.

Golden Years Not as Golden as Expected for Half of Retirees

Financial issues are likely just one factor for a number of retired Americans who aren’t thrilled with their post-employment lifestyle. 

About half of retirees (46%) believe the media paints an overly positive picture of what retirement is like. A similar percentage (44%) feel retirement has made them less relevant in society, and more than 1 in 3 (34%) say they feel lonelier since retiring.  

"Have a plan for your time as well as your money." 

— Male retiree from Michigan

A key factor could be that more than half of retirees (53%) prioritize preserving their finances over enjoying retirement. A shocking 1 in 7 (14%) have avoided medical appointments to ensure their savings last longer, and 1 in 10 (10%) go as far as skipping meals for the same reason.

On the other hand, 1 in 5 (20%) are spending frugally by choice, saying that leaving as much inheritance as possible to their heirs is more important than enjoying their retirement. 

A significant number of retirees are also unwilling to spend on things that are commonly considered essential to a happy retirement. Only a little over a third of retirees (38%) would pay more when moving if it brought them closer to family and friends, while the same modest percentage would pay more for a safe area with low crime. 

Although it’s a common stereotype that retired people flock to warm-weather states, such as Florida and Arizona, only 36% of retirees say they’d pay more to move to an area with good climate and weather.

Meanwhile, even as studies show benefits to health and lifespan for those who keep up social connections, fewer than 1 in 5 would pay more to live in an age-restricted community likely to be filled with other retirees (18%) or one with community amenities, such as a pool or fitness center (15%). 

Nearly Half of Retirees Didn’t Prepare Enough for Retirement

A majority of retirees (55%) say they retired earlier than planned, although it seems many could have benefited from a few more years of saving and research. 

Almost half of retirees (44%) believe they didn’t adequately prepare for retirement. Nearly two-thirds (62%) wish they’d better understood retirement savings and investments when working, and only 41% actually knew how much they needed to retire. 

For about half, the issue is fairly simple: 48% admit they saved less than 10% of their income toward retirement, a commonly recommended minimum amount by experts. 

Just under half (46%) also admit they didn’t even start saving for retirement until they were 40 or older — or didn’t start saving at all. Barely 1 in 4 (26%) started before they reached their 30s. Even small contributions made early in life can grow dramatically by the time retirement rolls around, thanks to the extra years of investment growth.

“Start early. There is great power in compounding interest, and it allows your money to work for you over the long term." 

— Female retiree from Colorado

However, even those who did save sometimes made mistakes with long-term consequences. Over a third (38%) wish they’d invested in riskier assets to grow their nest egg more when they were younger. That's more than 3x the number who say their investment choices were too risky (11%). 

Meanwhile, almost 1 in 4 (22%) admit to dipping into their retirement savings before they actually quit working.

Overall, approximately two-thirds of retirees (64%) have regrets about their retirement. The most common are that they should have saved more money (32%) and that they should have started saving earlier (28%).

Relatively few second-guess their timeline, however. Only 12% wish they waited to retire, just 2% say they regret not retiring earlier, and only 5% say they shouldn’t have retired at all.

"Save now, but don't forget to have fun. No one remembers wanting to serve on more committees but will always remember good meals and fun times." 

— Male retiree from Mississippi

About 1 in 3 Retirees Still Hold $10,000 or More in Non-Mortgage Debt

Although many likely dream of retiring their debts before retiring from their job, it’s apparent that it often doesn’t work out that way. 

Almost two-thirds of respondents (64%) are still carrying some debt beyond a mortgage, including 1 in 3 (31%) with more than $10,000 in debt. Among those with debt, the average is an eye-popping $19,415, an imposing sum to pay down without a full-time income. 

Credit card debt is most common, with 41% of retirees facing the sometimes astronomical interest rates this can carry. Just under 1 in 5 (18%) are still paying off car loans, and 1 in 8 (13%) have medical debt.

Overall, more than 1 in 4 (27%) are worried about their level of debt in retirement. 

Debt is just one factor in what’s really the key question for many: Will they be able to financially sustain their current quality of life for the rest of their lives? Almost three-quarters (70%) think so. However, this drops to 64% when they were asked about a specific 20-year timeline for their finances. 

About 1 in 12 (8%) are in especially dire circumstances, saying they’re not even confident they can keep up their lifestyle for one more year at their current spending and income level.  

Only 1 in 20 Retirees Worked Longer Than Expected

Although it might be a surprise considering other financial challenges American retirees face, just 5% say they retired later than expected. 

Among this small group, the majority kept working because they chose to (56%), which is more than 2x the amount who didn’t want their standard of living to decrease (23%) or who wanted to save more for retirement (21%).

Only around 1 in 8 say they retired late because they didn’t save as much as they should have (13%) or were in too much debt (13%).

"Retire at the same time as your partner. It's no fun doing things by yourself all day long." 

— Male retiree from Wisconsin

Almost Two-Thirds of Retirees See a Retirement Crisis in the U.S. 

Americans aren’t just worried about their own retirement finances. They also see broader issues plaguing those who have stopped working throughout the country. Almost 2 in 3 retirees (63%) go as far as saying the United States is in a retirement crisis. 

It’s easy to see why, when over half (53%) don't believe their current retirement plan accommodates future changes in the economy, and a troubling 83% of retirees believe the government does not have their best interest in mind when making policy decisions about retirement.

Almost half (43%) say the rising cost of health care impacted their retirement budget and planning, and around three-quarters (73%) are concerned that Medicare prices will increase in 2025. 

About half of retirees (47%) also feel that the 2024 election made them less certain about their retirement savings.

Over three-quarters of retired Americans (80%) believe the government should do more to help retirees, with almost the same percentage (79%) saying retired people shouldn’t have to pay any taxes. Meanwhile, 1 in 4 (24%) think taxes should be hiked on non-retired people to support those no longer working.  

Almost two-thirds (62%) think retirees should get priority in receiving government aid over working people. At the same time, half (52%) also feel retirees rely too heavily on government assistance rather than their own savings.

Nearly 1 in 4 (22%) take an even more miserly view, saying that people who didn't save for their retirement don't deserve retirement benefits. Meanwhile, 1 in 3 (32%) believe retirees should be required to take a financial literacy course to qualify for Medicare and Social Security benefits.

1 in 5 Retirees Rely Entirely on Social Security to Survive

Any accounting of Americans’ retirement finances has to factor in the massive impact of Social Security, with 86% of retirees saying they rely on money from the popular government program. That’s the most common type of income reported among respondents. However, for 1 in 5 retirees (20%), Social Security is their sole source of income.

They’re likely among the most concerned about the future of the program — but by no means the only ones. Almost half of retirees (48%) think younger generations don’t pay enough into Social Security, and 36% think Social Security benefits will run out in their lifetimes. In some cases, that could mean less than a decade or two. Still, 57% are opposed to raising the retirement age to account for increased life expectancy.

Seniors can begin claiming benefits as early as age 62, which could add several years of payments to their overall retirement income, compared to those who wait for the full retirement age of between 66 and 67 years old. 

However, this early claim comes with a permanent reduction of up to 30% of a retiree’s monthly benefit amount. That means it’s vital for those considering retirement to do the math on this critical issue. 

Over 1 in 4 respondents (27%) didn’t do so and now say they started taking Social Security benefits too early. However, retirees in our study had a median retirement age of 62, meaning many likely experienced this reduction firsthand and didn’t regret it.

"Explore your Social Security benefits before retiring to make sure you know how much you will get." 

— Female retiree from Washington

Beyond Social Security payments, the financial picture is more uncertain for many. Fewer than half of retirees have personal savings (49%) or a retirement investment account (45%), and only a third (34%) have an employer-funded pension plan. 

Although their days of punching the clock may be long over, a majority still aren’t happy with their former bosses. Approximately 54% of retirees don’t believe their employer helped them enough with retirement, and only 53% think their income during their working years was high enough to save adequately for retirement.

No matter how dire their financial situation is now, most aren’t going back to work. Just 4% say they earn income from part-time employment or consulting gigs. However, almost a third of retirees (31%) have considered going back to part- or full-time employment as a way to earn or save more.

Stark Differences Exist Between Retired Men and Women

As with many financial and lifestyle questions, there are some noteworthy gaps between retired men and women. 

For example, 2 in 3 men (66%) believe they saved adequately for retirement, while only half of women (49%) feel the same. A third of women (32%) report they have no money saved for retirement, while only 1 in 5 men (20%) are in this situation.

Two-thirds of men (66%) say their income was high enough to save adequately for retirement, while less than half of retired women (44%) believe this was true of their earnings. That could be why almost half of women (49%) worry they will outlive their retirement savings, while only 38% of men feel that way. 

Meanwhile, there’s a 20-point difference between the sexes when it comes to knowing how much they needed to save to retire. Over half of retired men (53%) say they knew, compared to just a third of retired women (33%). 

More than three-quarters of female retirees (77%) say they could not afford a home in today’s market, while fewer than two-thirds of male retirees agree (65%). 

The split also extends to retirement policies and programs. Fewer than half of retired women (46%) say retirees rely too heavily on government assistance rather than their own savings, compared to 62% of men who feel this way. The same number of retired women (46%) believe retirees with less money saved should get more benefits from the government. Only a third (34%) of men agree. 

These differences might be explained by the massive gender gap in expectations. More than half of women (58%) say government retirement benefits are less than they expected, but only 40% of men say so. 

1 in 4 Retirees Are Housing Cost Burdened

Even as other age groups, such as Gen Z, struggle with high rent and home prices, relatively few retirees are burdened by their spending on housing. However, this can change quickly for those on fixed incomes, even homeowners.

The median retiree in our study spends 20% of their income on housing costs, with over a third (36%) spending 10% or less of their income to keep a roof over their heads. 

Still, it’s worth noting that 1 in 4 (25%) spend over 30% of their income on housing, a standard benchmark for housing affordability, above which they’re considered housing cost burdened. 

Rising home values in recent years were a boon to retirees who sold their properties to downsize, move to a retirement community, or live with family or friends. However, those who stayed are worse off in some cases, including the 1 in 5 (20%) who struggle to pay their property taxes. 

These numbers are likely the reason why nearly half of retirees (44%) say their home is the only thing allowing them to have a comfortable retirement.

"Buy an affordable home when you are young, pay it off as fast as you can, and then stay in it as long as you can."

— Female retiree from Wisconsin

Although moving to an assisted living or retirement community is sometimes an inevitable part of aging, the overwhelming majority of retirees would like to avoid it at all costs.

Roughly 90% of retirees feel that retirement communities are overpriced and unaffordable for the average retiree. With a median cost of more than $3,000 a month for independent living retirement communities and over $5,500 for assisted living, they may be right when it comes to affordability. 

Price aside, 70% would accept a lower quality of life in exchange for the independence of staying at home over moving to a retirement community.

It’s not much better for retirees in the traditional real estate market. Almost three-quarters (72%) concede they couldn’t afford a home in today’s market, which must be a relief to the 50% who own their homes outright and the 25% who have already bought a home and are still paying down their loan.  

Even as they age and their needs change, over two-thirds of retired homeowners (68%) say they have no plans to downsize in the future. Only 1 in 8 (12%) plan to downsize in the next five years, more evidence that a “silver tsunami” of retiree home sales isn’t on the horizon.

Although some downsizing and moving may be by choice, fewer than a quarter (23%) say they could afford to make major future modifications to their home to accommodate aging in place — making a future move a potential necessity.   

"Try to sell your house and buy a townhouse or condo that does not have stairs. You don't know about your physical ability to handle stairs later on." 

— Female retiree from Texas

On the other hand, another 1 in 3 (35%) say it’s a priority to leave their homes as an inheritance for their families. Of course, it’s worth checking with their families first. About the same percentage (36%) say their children would prefer they sell their home instead of passing it down.

Methodology

Clever Real Estate surveyed 1,000 retired Americans with a median age of 70 to discover the current state of their finances and housing, as well as their perspectives on retirement.  The survey was conducted from Nov. 14 to Nov. 18, 2024.  The margin of error is +/- 3.5%.  

About Clever

Since 2017, Clever Real Estate has been on a mission to make selling or buying a home easier and more affordable for everyone. Twelve million annual readers rely on Clever's library of educational content and data-driven research to make smarter real estate decisions—and to date, Clever has helped consumers save more than $160 million on realtor fees. Clever's research has been featured in The New York Times, Business Insider, Inman, Housing Wire, and many more.

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