More than half of working Americans might not be saving enough for a comfortable retirement, and the most vulnerable are the worst off.
That’s according to multiple studies from financial institutions, retirement researchers in academia, and the Federal Reserve.
Workers are also aware of the retirement savings gap. Nearly 80% of adults think the country is in a retirement crisis, with inflation and market volatility driving their concerns.
Nearly half of working households are at risk of a retirement savings shortfall
Forty-seven percent of working households are in danger of not having enough retirement savings, according to analysis from the Center for Retirement Research at Boston College.
That’s based on the Center’s National Retirement Risk Index, which measures the share of households that are not on track to maintain their preretirement standard of living in retirement. The projection assumes households work until age 65 and annuitize their assets. The share of households facing a retirement shortfall is consistent with findings from previous years.
A 2024 survey from the Transamerica Center for Retirement Studies found that 63% of Americans think that working retirement wouldn’t or didn’t provide enough savings to retire comfortably. That jumps to 70% among non-retirees.
A higher percentage -- 79% -- of working-age Americans believe the country “faces a retirement crisis,” up from 67% in 2020, according to a 2024 survey from the National Institute on Retirement Security. Their largest concerns are rising costs in general, inflation, and market volatility.
The median retirement account value in 2023 was $87,000. Two-thirds of Americans reported having a retirement account that year, according to the Federal Reserve.
The share of working Americans at risk of retirement shortfall by income and wealth
Lower-income, lower-wealth Americans are most at risk of not accumulating enough retirement savings to maintain their current quality of life, but even a slice of the top earners might fall short as well.
Fifty-six percent of low-income working adults and 45% of middle-income working adults are in danger of a retirement shortfall, per the Center for Retirement Research at Boston College. That’s compared to 41% of high-income workers.
That contrast sharpens when looking at overall wealth. Seventy-three percent of low-wealth workers are at risk of a retirement shortfall compared to 40% of middle-wealth workers and just 28% of high-wealth workers.
