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.
ZERO for me and my wife-to-be at age 21. We were still undergrads in college and still had no savings at age 30 after graduate school (me) and medical school (her) were completed. But we made up for it.
This whole article is utter hogwash, and yes, I believe the intent of the author is to keep economic sourness afloat as long as Trump and the midterms are in front of us. Who gets the blame if everybody is unhappy with their economic circumstances?
1) No way you need $1.5 million to retire “comfortably”. You can retire on far less if you extinguish all your debt, including mortgage, before or shortly after you retire. But yeah, I could retire even more comfortably with $10 million saved. So there’s that.
2) Generally speaking, when you retire your expenses decline rapidly unless you travel a lot or have expensive hobbies to maintain.
3) As noted, most 20-somthings don’t have anything saved yet. As parents, it is your job to help guide your kids financially and help them build wealth.
4) Not always possible, but parents should try to leave their kids something to help them when they pass.
This idea that Uncle Sugar is going to be your lifeline until the grave should be considered absurd. Yes, Social Security is your money, and it helps, but no way anyone lives on $1,200 a month. Moreover, the government has a stranglehold on your Social Security money and thus, like beholden slaves, you are dependent on the government to dole out your meager money. Try to be free of that dependency if possible.
Some people keep their 401k accounts with previous employers (i.e., the employee doesn’t roll them over when they leave for various reasons). This fact may skew the average 401k balance a bit.
I left a 401K in place because I was comfortable with the plan and the negotiated fees were extremely low. At some point I will roll them over but in the meantime I’m saving on fees that would otherwise be growing along with the balance in the account. The fees really start adding up after ten or so years.
I agree, the ridiculous sample used tells you all you need to know. Also, we all have watched people live high at 35-65 and then disappear when they retire because they can’t show off anymore.
The democrats have a HUGE constituency there!
“I have absolutely zero doubts this study was presented with a purpose to serve the Left.”
I would agree with that.
But lots of young people don’t save
True, but those that do.....will end up paying for those that don’t.
Your point #4, while not invalid, is of minor importance. I’m still kicking, and expect to be for many more years. The kids shouldn’t (and don’t) base their retirement on getting whatever is left of the Mountain Millions. Similarly, by the time both my parents were in the grave, I had already built up significant personal net worth ... inheritance is nice to have, but I wasn’t depending on it as essential.
Other families (ranch/farm, for example) may have different arrangements.
There are also a lot of people who SPEND everything they make.
They never invest or save for a rainy day.
I started three IRAs with American Century Funds back in the late 1980s with $250 and a $25/month deposit. Now those funds are worth six figures.
I started putting money into a 401K in 1985.
I maxed it out every year I could.
I have NEVER driven fancy cars. Even though I could.
I never bought the McMansion house. Even though I could.
I am now 62. I no longer NEED to work. I now choose to.
I have seen a lot of people who came through this office as traders and then spent EVERYTHING they made. Most of them are now gone. That is because they were NI##ER RICH.
Fill in the GGs.
They all drove fancier more expensive autos than me.
I am continuing to see it today. A young guy who is making six figures for the first time goes out and buys a $60K pickup truck. Instead of a house/condo.
I have also seen many people invest in get rich quick investments instead of saving LONG TERM.
People make BAD DECISIONS. I did. I got married to the wrong woman the first time. It cost me ten of thousands. No kids though.
My 401K lost 50% or more of it value between 2007 to 2009.
I kept maxing it out and put most of it in tech funds.
Now it is all in TBills. That is because I can now live off the 4% interest and I have ZERO debt.
“I believe the intent of the author is to keep economic sourness afloat as long as Trump and the midterms are in front of us.”
*************
Absolutely right. There will be a steady drumbeat of similar stories about retirement, affordability and personal financial struggles right up to the elections.
Re your point #2, it seems intuitively true but with retirement comes lots of free time to pursue lots enjoyable things to fill the void in your life from no longer having to spend so much time working. People take up new hobbies, meet new friends, do things for your family, and generally find things to occupy that newfound freedom. This can introduce all kinds of unexpected expenses into your life.
A lot of seniors in relatively good health lead very active lives. I think may are surprised by the actual cost of their golden years. ;)
And I would agree with you. No way is it essential, for me however it’s just trying to adjust the arc of my financial life in an effort to build generational wealth. Akin to hoping to win the lottery someday, children should never build their own portfolios around someday, possibly, maybe, obtaining an inheritance. Thus, the critical step (#3) of helping your children build their very own wealth.
“What are the savings of people in the 45 to 64 age range?”
45-54 group averages $115,000 (median) $313,220 (mean)
55-64 group averages $185,000 (median) $537,560 (mean)
The $955 figure is hogwash.
Just saw figures of something like, age 55-64 have an avg retirment 401K of approx 264K(still not a lot!).
A far cry from $955!
Truly what people are unprepared for is boomer parents longevity, coupled with dementia. People don’t realize that they will have to stop working to care for parents or place them in a facility, a minimum of 5k a month. We aren’t prepared for long term care.
I have seen a lot of people who came through this office as traders and then spent EVERYTHING they made. Most of them are now gone. That is because they were NI##ER RICH.
Fill in the GGs.
They all drove fancier more expensive autos than me.
On YouTube there are videos of people driving through hoods around the country. You see run-down houses and trash everywhere, but the cars are nice.
My wife and I have no debt. We’ve never had debt. That was hard at first; we didn’t make much money.
Retire to a place and lifestyle you can live on retirement funds. Imo retirement is for focusing on health and family
We’ve got too many idle rich, as it is.
“They will enter retirement age with almost nothing.
This is how the US will be destroyed: as a welfare state.”
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Welfare plus the corruption and fraud that will immediately resume if/when Dems get back into power.
This is how the US will be destroyed: as a welfare state.
Gee, our old LaSalle ran great.
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