There's a Retirement Crisis on the Horizon — See How Your Savings Compare to the Rest of Your Generation's Thirty percent of Americans believe they'll never be able to retire.
By Amanda Breen Edited by Jessica Thomas
Key Takeaways
- Nearly 40% of Americans are contributing nothing to a retirement fund; 30% say they'll never be able to retire.
- People thought they would need nearly $1.3 million to retire comfortably in 2023, up from $1.25 million the year before.
In 1991, the average reported retirement age was 57; in 2022, it was 61, according to a Gallup survey of more than 1,000 U.S. adults.
The increase is perhaps not surprising given recent inflationary pressure, but it paints a troubling picture of what's ahead if Americans don't set themselves up for retirement in the years to come.
And a new survey from personal finance resource GOBakingRates suggests that many of them won't. The research, which surveyed over 1,000 U.S. adults, revealed that nearly 40% of Americans are contributing nothing to a retirement fund — and 30% of them say they'll never be able to retire.
Across all generations, 28% of Americans have nothing saved for retirement, per the survey. Here's how many people have $0 saved for retirement by generation:
- Ages 18-24 (Gen Z): 28%
- Ages 25-32 (millennials): 30%
- Ages 35-44 (millennials and young Gen X): 35%
- Ages 45-54 (Gen X): 33%
- Ages 55-64 (Gen X and young boomers): 25%
"The statistic that 30% of Americans have $0 saved for retirement is alarming but not surprising," retirement planning expert Mike Kojonen, founder and owner of Principal Preservation Services, told the outlet. "Through countless consultations, I've observed a prevalent lack of awareness about the cost of retirement and a significant underestimation of how much needs to be saved."
Americans believed they would need nearly $1.3 million to retire comfortably in 2023, up from $1.25 million the year before, according to research from Northwestern Mutual.
Related: This Is the Key to the Retiree Lifestyle You Want — and the Income You Need
Yet another recent analysis from GoBankingRates determined that a $1 million retirement nest egg may only last about 20 years, depending on which state someone retires in.
Seventy-one percent of Americans gearing up for retirement have five-figure savings or less: 10% have $50,000 to $100,000, 33% have less than $50,000 and the aforementioned 28% have zero saved, according to the outlet's research.
