Working Americans Struggling to Prepare for Retirement, New National Institute on Retirement Security Report Finds

Typical Working American Has Less Than $1,000 Saved for Retirement

Webinar on February 11 to Review Findings

WASHINGTON, Feb. 5, 2026 /PRNewswire/ -- Preparing for retirement remains a major financial challenge for working Americans, according to a new report from the National Institute on Retirement Security (NIRS). Retirement in America: An Analysis of Retirement Preparedness Among Working-Age Americans examines how workers across demographic groups are saving — or failing to save — for retirement. The study also examines how rising costs and competing financial pressures are undermining the long-term economic security of American workers.

Read the report.

Register for the webinar scheduled for Wednesday, February 11, 2026, at 2:00 PM ET.

Drawing on the U.S. Census Bureau's Survey of Income and Program Participation (SIPP), the report finds many workers still lack access to employer-provided retirement plans, have minimal savings, and face growing tradeoffs between saving for retirement and meeting basic financial needs such as housing and student loan repayment. While recent legislative efforts have made incremental improvements to the retirement system, the report notes that major challenges remain, including the lack of access to retirement savings systems and ongoing uncertainty around the future of Social Security.

"At a time when Americans are facing a growing affordability crisis, we need to recognize that retirement should be part of that conversation," said Dan Doonan, NIRS executive director. "Most retirement programs today rely on workers saving voluntarily, with the tension between saving and the cost of buying a home, daycare, and college creating enormous challenges for the middle class. This research shows the fragility of both the nation's retirement infrastructure and retirement preparedness for the typical U.S. household."

"For example, the data indicate that among 55 – 64 year-olds, the median amount saved for retirement is only $30,000. Even among those with savings, balances often are far too low to support a secure retirement. Today, too many households are forced to choose between paying their bills and saving for tomorrow. Strengthening access to reliable retirement plans is essential if we want Americans to retire with dignity rather than anxiety," Doonan said.

The report highlights several troubling trends in retirement preparedness among working-age Americans:

• Access gaps persist. Many working Americans still lack access to employer-provided retirement plans. Public sector workers are more likely to have plan sponsorship and participation as compared to private sector workers. Hispanic workers and those with lower incomes or lower levels of education are significantly less likely to have access or participate.
  
  
• Social Security remains essential, but it is insufficient alone. Social Security accounts for roughly half of income for the typical older adult. Income from retirement plans - both defined benefit (DB) and defined contribution (DC) - represents about one-fifth of income on average.
  
  
• Savings levels are low. Among workers with positive DC savings, median balances were $40,000 in December 2022. Across all workers, including those with no savings, the median amount saved was just $955.
  
  
• Contribution rates are modest. Typical employee contribution rates to DC plans range from five to six percent, while typical employer contributions are just under three percent.
  
  
• Retirement savings trail other assets. Retirement savings account for about one-quarter of financial assets on average for working adults, while home equity represents about one-third. For some workers, the median value of a vehicle exceeds their retirement savings.
  
  
• Student debt complicates saving. Workers with student loan debt are more likely to have access to and participate in retirement plans, but they tend to have lower account balances, fall further behind savings targets, and have significantly lower net worth than workers without student loan debt.

The report focuses on working-age adults (ages 21–64) who currently are employed, and it also includes an analysis of adults age 65 and older. The study examines how retirement preparedness intersects with other major financial commitments, including homeownership and student loan debt, and how outcomes vary by age, income, education, race, and gender.

The study is authored by Tyler Bond, NIRS research director, and Dr. Joelle Saad-Lessler, Stevens Institute of Technology School of Business Associate Dean of Undergraduate Studies. The authors utilized data from the public-use version of the U.S. Census Bureau SIPP, and the analysis is based on the 2023 SIPP panel, with December 2022 as the reference month.

The National Institute on Retirement Security is a nonprofit, nonpartisan organization established to contribute to informed policymaking by fostering a deep understanding of the value of retirement security to employees, employers, and the economy as a whole. Located in Washington, D.C., NIRS membership includes financial services firms, employee benefit plans, trade associations, and other retirement service providers. More information is available at www.nirsonline.org.

SOURCE National Institute on Retirement Security