The Retirement Crisis: Shocking Truth About How Many Retirees Have No Savings

Are you worried about having enough money for retirement? You’re not alone. The state of retirement savings in America is alarming, with a significant portion of retirees and soon-to-be retirees having little to no savings set aside for their golden years. This financial reality has created what many experts are calling a retirement crisis.

The Shocking Numbers

When I first looked at the data, I was honestly stunned Depending on which survey you look at, the percentage of Americans with no retirement savings ranges from 20% to nearly half of all households. Let’s break down these concerning statistics

• According to Gallup, about 40% of adults have no investments for retirement
• AARP’s recent survey found that 1 in 5 Americans (20%) ages 50+ have no retirement savings at all
• The Federal Reserve reports that 28% of non-retired adults have zero retirement savings
• FINRA’s 2025 National Financial Capability Study indicates that 43% of non-retired Americans don’t have a retirement account
• USAFacts data shows that in 2022, nearly half (46%) of American households had no savings in retirement accounts

People over the age of 65 who don’t have much time left to save for retirement should be especially worried by these numbers. Even worse is the fact that many people who do save money don’t have nearly enough.

Who’s Most at Risk?

The retirement savings crisis doesn’t affect all Americans equally. Several groups face particularly high risks:

Older Americans with Little Time to Catch Up

People in their 50s and 60s without significant savings face the greatest immediate danger. With retirement just around the corner, they have few working years left to build a financial cushion.

The “Forgotten” Generation X

According to Northwestern Mutual’s research, Gen X (people born between 1965 and 1980) feels especially unprepared. More than half of them think they won’t have enough money for retirement. Many of these people are now in their 60s and don’t have enough saved.

Low-Income Households

A lot of Americans who live from paycheck to paycheck can’t save for retirement. A lot of the time, they can’t join retirement plans offered by their employers and miss out on benefits like having their contributions matched.

Women Face Bigger Challenges

Women tend to retire with smaller account balances partly due to

• Lower lifetime earnings
• Time spent out of the workforce for caregiving
• More limited access to employer plans and contributions

Racial Disparities

The Employee Benefit Research Institute found significant racial gaps in retirement plan participation:

• 68.5% of whites had a retirement plan in 2023
• 56.5% of Blacks had a retirement plan
• Only 41.8% of Hispanics had a retirement plan

Why Are So Many Americans Unprepared?

I’ve talked to many people about this issue, and several factors keep coming up:

1. The Shift Away From Pensions

In 1989, half of working households ages 50 to 60 had a defined benefit plan (pension). By 2022, only a quarter did. This shift has transferred the responsibility of retirement planning from employers to individuals.

2. Daily Expenses Take Priority

The AARP survey found that everyday expenses continue to be the top barrier to saving more for retirement. With the lingering effects of inflation and high costs, many Americans are focused on immediate needs:

• 37% worry about covering basic expenses like food and housing
• 26% worry about covering family caregiving costs
• 70% worry about prices rising faster than their income

3. High Debt Levels

Credit card debt is a major obstacle. Nearly one-third (30%) of older adults who carry over a credit card balance from month-to-month report carrying a balance of $10,000 or more, while 12% described their balance as $20,000 or more.

4. Lack of Access to Retirement Plans

Americans are 15 times more likely to save for retirement when they have access to a workplace plan. Yet nearly 57 million people do not have access to a retirement plan at work.

What Does This Mean for Retirees?

Without adequate savings, many retirees face difficult choices:

Relying Heavily on Social Security

Many Americans will depend almost entirely on Social Security benefits, which average about $22,000 per year. That’s typically only about 40% of pre-retirement income—far short of what most households need to cover housing, food, medical care, and other expenses.

Working Longer Than Planned

The AARP survey found that 26% of people who are not yet retired say they don’t plan to retire at all. To make ends meet, many people will have to work well past the age of retirement.

Facing Potential Poverty

When working is no longer possible, those without savings may face real financial insecurity or poverty in old age.

Depending on Family Support

Some retirees without savings will need to rely on family members for financial support, creating potential strain on younger generations.

How Do Your Savings Compare?

USAFacts provides some benchmarks for comparison:

• At ages 30-34, the median household had $4,700 in retirement accounts
• At ages 55-59, the median household had $24,500 in retirement accounts

But retirement accounts aren’t the only way people save. When considering all financial assets (including checking/savings accounts, stocks, bonds, etc.):

• The median household between 30-34 had $20,100 in financial assets
• The median household between 55-59 had $76,000 in financial assets

Net worth (which includes non-liquid assets like homes and vehicles) is higher:

• The median household between 30-34 had a net worth of $89,800
• The median household between 55-59 had a net worth of $320,700

Solutions: How Can We Fix This Crisis?

There’s no easy fix, but several approaches could help Americans build more secure retirements:

Expanding Access to Workplace Retirement Plans

Eight states already have auto-IRA programs running: California, Colorado, Connecticut, Illinois, Maine, Maryland, Oregon, and Virginia. Massachusetts has a multiple employer plan, and ten other states have passed legislation and are implementing similar programs.

Automatic Enrollment

Studies show that when workers have to opt out instead of opt in to retirement plans, participation jumps from around 50-60% to as much as 85-95%.

Federal Legislation

Congress is considering different pieces of legislation that would expand retirement security, including:

• The bipartisan Retirement Savings for Americans Act of 2023
• The Automatic IRA Act of 2024

Better Financial Education

Many Americans need better education about basic retirement planning and when to claim Social Security benefits.

Improving Social Security and Medicare

Boosting funding for these crucial safety net programs would help provide a more secure base for retirees.

What You Can Do Now

If you’re worried about your own retirement savings (or lack thereof), here are some steps to consider:

1. Start saving something—anything—today. Even small amounts add up over time.

2. Take advantage of employer matches if your workplace offers a retirement plan. This is essentially free money.

3. Look into IRAs if you don’t have access to a workplace plan.

4. Pay down high-interest debt, especially credit cards, which can drain your ability to save.

5. Consider working a few years longer if possible, which can significantly increase your retirement security.

6. Maximize your Social Security benefits by understanding the best time to claim based on your situation.

7. Look into state programs if your employer doesn’t offer a retirement plan.

The Bottom Line

The sheer number of Americans with no retirement savings shows our system isn’t working as designed. Without critical changes—such as expanding access to savings plans, bolstering Social Security’s safety net, or making automatic enrollment the norm—millions risk facing old age with nothing in the bank.

This isn’t just a problem for these individuals but for all of us. If too many households enter retirement unprepared, the financial strain will affect the entire U.S. economy. We need to address this crisis now before it becomes even more severe.

What’s your retirement savings situation looking like? Are you on track, or worried about having enough? I’d love to hear your thoughts and experiences in the comments below!

Note: This article was last updated October 2025. Statistics may change as new data becomes available.

The median retirement savings for Americans ages 65-74 is approximately $200,000, while the average (mean) is around $609,000.