Millions of Americans Unprepared for Retirement

New research reveals low median retirement savings, raising concerns about financial security in golden years.

Published on Feb. 16, 2026

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A new report from the National Institute on Retirement Security found that American workers with retirement accounts had a median balance of about $40,000 in 2022. However, when all workers are included in the calculation, that median drops dramatically to just $955. Experts warn that rising retirement ages, lower benefit amounts, and stagnant wages are making it increasingly difficult for workers to save adequately for retirement.

Why it matters

The growing reliance on Social Security, which provides about half of the income for older adults, comes even as concerns mount about the program's long-term stability. Without Congressional action, benefits could be reduced after 2034. This retirement savings gap is widening across education and racial lines, with long-term consequences for health care access, housing stability, and economic inequality.

The details

The report highlights that about 60% of Americans over 55 have no private retirement savings, and many will be forced to sell their homes just to afford retirement. Experts say the average American would need to save $300 to $400 a month starting in their early 20s to have enough to retire by 65, but most don't have the disposable income to do so. The retirement age is also expected to increase to 70 or 72 as the norm, further exacerbating the problem.

  • The National Institute on Retirement Security report was released in 2022.
  • Benefits from Social Security could be reduced after 2034 without Congressional action.

The players

National Institute on Retirement Security

A nonprofit research and education organization that works to advance policies and promote programs that enable Americans to build financial security in retirement.

Richard Gearhart

Professor of economics at California State University, Bakersfield, who provided expert analysis on the retirement savings crisis.

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What they’re saying

“They think that social security will be enough to allow them to retire in the future, and unfortunately, that's not the case. With the increases in the age at which you start getting benefits and the decreases in the actual benefit amounts.”

— Richard Gearhart, Professor of Economics (turnto23.com)

“As of now, you need about 1.5 million dollars saved by the time you're age 65 to not see a dip in your standards of living. Most Americans don't have the disposable income to be able to do that.”

— Richard Gearhart, Professor of Economics (turnto23.com)

What’s next

Experts recommend that individuals start saving for retirement as soon as possible, even if it's just $100 per month. They also advise planning for future healthcare costs, which can be significantly higher in one's 70s and 80s, and maintaining a healthy lifestyle to reduce financial strain later in life.

The takeaway

The retirement savings crisis in America is a growing concern, with millions of workers heading into their golden years with dangerously low savings. This issue is exacerbated by rising retirement ages, lower Social Security benefits, and stagnant wages, leading to long-term consequences for economic inequality, healthcare access, and housing stability. Addressing this crisis will require a multi-faceted approach, including individual savings efforts and policy changes to strengthen the social safety net.