Posted on 02/10/2026 6:40:28 AM PST by Diana in Wisconsin
New data from the National Institute of Retirement Security shows that the average American worker has less than $1,000 saved for retirement. This stark figure highlights the financial strain that millions of Americans could face as they approach their later years.
The figure of less than $1,000 saved includes workers with retirement savings accounts such as 401(k) plans, as well as approximately 56 million U.S. workers who currently lack access to any employer-sponsored retirement plan.
Americans say they need roughly $1.5 million to retire comfortably, and the average savings for all employed adults aged 21 to 64 is just $955. For those who do have retirement savings, the average balance stands at about $40,000—far below the amount many consider necessary for a secure retirement.
Millions of seniors rely heavily on Social Security benefits, which provide about half of the typical senior's annual income. However, Social Security faces a significant funding shortfall. If Congress does not act, beneficiaries could face a cut of roughly 20% starting in 2034.
Meanwhile, the Trump administration is introducing "Trump Accounts" aimed to help millions of children save money over time to eventually buy a home, fund education, or start a business. The accounts could also be used for retirement savings.
While "Trump Accounts" may benefit future workers, the current retirement system continues to exclude millions of Americans who lack access to 401(k)s and similar employer-sponsored plans.
Financial discipline is lacking from the top of this country all the way down....
I can start retirement accounts, if I so choose, in 30 seconds with fidelity for myself, my wife and if I wanted, my children.
Issue is putting money away. Gotta remember people out there are paying for groceries on payment plans.......
13) Non-IRA Savers: They may have savings, but choose not to save in a government approved and regulated account. $0 in savings.
14) Reproductively Prolific: They have LOTS of children, who are their retirement security. In my lifetime, I know of people who lived among their offspring serially. That was always the plan. $0 in savings.
15) Government Employees: Their pensions are golden, so why bother? Live for today, your retirement is covered by me. $0 in savings.
16) Others with Golden Pensions: See immediately above.
Obamacare changed the asset requirements for states that signed on to extended Medicaid. Assets aren't looked at, just income. Same with the VA....
People from 1776 to 1935 didn’t have retirement savings at all. They survived and so will everyone today.
I agree. There are people that waited tables and worked Walmart that know and were bragging how they have $400k or more in their retirement accounts. Made me think that should have done a better job at saving.
I think this is the money quote: "However, Social Security faces a significant funding shortfall. If Congress does not act, beneficiaries could face a cut of roughly 20% starting in 2034."
Oh no! SS funding shortfall! Congress MUST act!
It is true but none of those people are in the 70 million yet. Next year it might be 80 million because of thos states but my poit is that if you factor in some 90 million people with no assets or less than 2000 it makes for a lot of people with no retirement.
Roger that. Thanks. I rarely buy these reports as being completely above board.
Agree. The article focuses strictly on retirement savings and paints an ugly picture, but there are other assets that people have such as ownership of small businesses, stocks and bonds, homes and other properties, inheritances, etc. that can help to fund retirement.
Or it would mean that you have a good job and burn through all your income every year, which would classify you as incredibly stupid.
Many high-income people simply spend every dime they make and can borrow. Sad, but fairly common.
When I was in elementary school back in the fifties, we had a weekly ‘banking day,’ when students could line up at a table in the hallway staffed by a friendly lady from the local bank, deposit a dime or a nickel, or maybe some ‘birthday money,’ and have it recorded in a real bank account book. Somehow it never occurred to us then or since that we shouldn’t continue to do our own savings. Now, I and my surviving friends are all retired and financially secure. If we had had a “Trump” deposit to start us off, we would all be wealthy today.
The source of this information is the propaganda arm for public service worker unions advocating tirelessly for more benefits for themselves — at the expense of all the other workers. If they don’t have an employer-sponsored 401K plan, they can accumulate retirement savings in an IRA — or even in a regular savings account. Many people don’t have dedicated retirement accounts because they need it for all purposes.
The problem is basically education — and how poorly the teachers (and public service workers) are preparing students for real world success. Financial literacy and education should be top of the list — and not all these social justice issues and labor advocacy for public service workers to get as much as the CEOs and entrepreneurs, and other DEI issues. That’s not preparing them for the real world — but setting them up for failure in every society and endeavors in life by unilaterally pressing their own demands for unlimited wants.
Such people will never have enough — because they fail to realize that success is not guaranteed to all no matter what they do — but they have to make wise choices that favor success in everything they do. People can’t just do whatever they want to do and turns them on, and believe there will be a good outcome. Protesting and preventing everybody else from being productive either, is not the same as reading, writing, and arithmetic — no matter how loud they chant what these shop stewards (union organizers) demand.
If they want to pay $50 for a cup of coffee, that is the price they pay for the baristas to make it. Everything is related to everything else. Unlimited free money comes with a price — and not just take as much fraudulently as you want.
Meaning what, that the chronically unemployed lack retirement savings?
-PJ
“You can make statists read what ever you want.”
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Correct. The use of averages can be very misleading. For example, the “average” home price is often calculated using the median rather than the mean.
That noted, it is still true that Americans don’t put enough aside for retirement. Many studies confirm this.
“if you factor in some 90 million people with no assets or less than 2000 it makes for a lot of people with no retirement.”
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And a very big voting block that politicians will be happy to pander to.
We now need to help out those poor souls that lived irresponsibly—spent every thing they made (plus going into debt), never saved any money, and now have nothing for retirement…..rolling eyes here. Yarite.
Not to mention those that didn’t work or didn’t want to even work.
And yet consumer spending is rising at all three levels, low, medium and high income people all spending more.
You bet.
Let’s wargame this.
They vote.
There are many of them.
They will enter retirement age with almost nothing.
This is how the US will be destroyed: as a welfare state.
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