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.
Also 100% true. I began voluntarily buying Savings Bonds when I was in my late Twenties...but I don't think a lot of young people do that.
A lot of young people also forego health insurance. Or at least they used to, before Obamacare. Don't know how that goes now.
This whole thing has been percolating for a while.
Democrats openly state that the intent isto take the retirement savings away from those who have saved and redistribute it to those who have not.
Obama himself said “401ks are racist”.
“Hey FReepers! What did your retirement savings look like when you were 21?”
$0.
I can’t remember how old I was when I first opened a retirement account, but I think maybe 26. Even by 30, my balance was pretty pathetic (maybe like $15,000, I can’t totally remember). 25 years later, most folks outside the top 1% would be impressed with my balances. Nothing extraordinary was done... just regular saving and blue-chip investing.
-PH
264K(still not a lot!).
*************
Minus taxes and subject to the destructive effects of inflation. You’re right, not as much as it appears.
A quick web search suggests there are currently ~60M adults 65 and over on Medicare with around 7 million eligible for Medicaid aid as well. I don’t think the problem is as big as you you suggest.
At 21? $zero
My retirement account started 20+ years later when I retired from active military service.
Yes, I know that dynamic too...of course, any of us can go down that road, but...a lot of us live within our means from 35-65 too, so we are used to living within our means and not much will change if we plan right!
I agree with your post entirely. It has long been known that Social Security is a Ponzi scheme, but because the government runs it...it is okay.
Actually, they do check for assets. I know first hand from some people looking into it for VA etc.
Check again. Assets don’t count, just income.
I see the difference - the people I was working with were seeking Medicaid Long term care, which still has asset tests.
Regular Medicaid for a single woman with kids, for example, is entirely income based.
“””45-54 group averages $115,000 (median) $313,220 (mean)
55-64 group averages $185,000 (median) $537,560 (mean)”””
Thanks for looking that up.
So if the average of the 45 to 65 age group is about $150,000,
then the 25 to 45 age group is quite low. And that is not surprising.
Honestly I find reports like this dubious... I know there are people who don’t and can’t save, but the fact they try to claim its the AVERAGE.. that’s where you lose me.
~20% of households have a net worth of over $1 Million dollars
53% of Americans have retirement accounts of some sort.
As such I find these claims that the average american has less than 1k saved to be bunk.
even if the 47% have NO SAVINGS.. all it would take would be the 53% who do to have 1900 each in those accounts and you have an average of over $1000 per person... So these reports don’t pass the smell test.
Given that most folks with retirement accounts, unless they are newly working have 10s if not 100s of thousands and depending on age millions in these accounts, to try to claim the overall average is less than 1000 just doesn’t hold true with any sort of scrutiny.
The most debt I ever had was the $100K that I borrowed from St Marys Bank at 10.375% interest in 1990. The price of the house was $125K.
I sold that house five years later and bought another one for $175K. Borrowed $100K again at 6.25%.
Sold that seventeen years later and bought the house I am in today for $270k. Borrowed $70K @ 2.375%. Paid that off a few years ago.
I feel sorry for these young people today trying to buy a house for $600K or more in a lot of places.
“Some fraction of people are wired to spend everything and more all of the time.”
Sounds like politicians!
I still have no doubt that eventually Washington will be coming for our savings. Too much money for them to ignore (until WE decide to take out and pay taxes on our schedule).
You’re right. I still pinch pennies and have no need to do so. It’s a habit. We live way below our means. Toys aren’t that interesting anymore. Bigger house, don’t need it. Eat out, my wife is a fantastic cook and prepares healthy food, better than eating out, which we do less than once a month.
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