Key findings
- One in five (21%) retirees have no retirement savings.
- Most retirees feel retirement has met or exceeded expectations, with experiences largely dependent on their financial readiness.
- Illness and declining health are the top concerns for retirees, but financial worries are also significant, with over half (56%) expressing concern that their savings might not last throughout retirement.
- One in three (32%) retirees relocated after retiring, motivated by lower living costs and being closer to family.
- Nearly all retirees depend on Social Security payments, while high savers also supplement their income with passive income sources, savings, and retirement plans.
- Four in ten American workers (40%) are behind on retirement planning and savings, primarily due to debt, insufficient income, and getting a late start.
- Not your parents’ retirement plan: most workers envision a retirement different from their parents’.
- American workers are optimistic about their ability to retire, but face greater challenges compared to previous generations.
- Nearly half (52%) of workers plan on working in some capacity after retirement.
- Expectations vs. reality: workers grapple with life after retirement as they brace for looming caregiving responsibilities and work for supplemental income.
One in five (21%) retirees have no retirement savings
One in three (36%) retirees have nothing saved or less than $50,000 saved for retirement: 21% have no savings or did not save for retirement, while 15% have less than $50,000 saved. Black and Hispanic retirees are much more likely than white retirees to have nothing saved for retirement (35% and 29% vs. 18%, respectively) or have less than $50,000 saved (28% and 19% vs. 14%). Nearly four in ten (37%) had at least $250,000 saved up for retirement, compared with 20% who had between $50,000 and $250,000.
Most retirees feel retirement has met or exceeded expectations, with experiences largely dependent on their financial readiness.
While most retired Americans think that their retirement meets (48%) or exceeds (30%) their expectations (78%), one in five (21%) feel that retirement is worse than expected.
- Women are more likely than men to feel disappointed with retirement (23% vs. 17%)
- Annual incomes also have a disproportionate impact on expectations after retirement: one in three (32%) of retirees with annual incomes below $50,000 say retirement is worse than expected, outnumbering the 20% who say it has been better than expected.
- 83% of those with incomes between $50,000 and $99,999 say retirement has been about or better than expected, with only 16% saying it has been worse than expected. This trend continues with higher-income retirees: among those with annual incomes of $100,000 or higher, 91% say retirement is about as expected or better than expected, and only one in ten (9%) say it’s been worse than expected.
Despite feelings of inadequate savings, only one in ten (8%) say they retired at an age later than they wanted: 49% say they retired at the age that they wanted, while 42% say they were able to retire earlier than expected.
Illness and declining health are the top concerns for retirees, but financial worries are also significant, with over half (56%) expressing concern that their savings might not last throughout retirement
One in three (31%) retirees cite declining health or illness as their biggest worry during retirement. While health is the leading concern for retirees, financial concerns loom large.
- Half (53%) say that they did not save enough for retirement, compared with one in three (33%) who say they save just enough, and 13% who say they saved more than enough. More than half (56%) are ‘very or somewhat concerned’ about running out of savings during retirement.
- Nearly nine in ten (86%) of retirees say that inflation has had some impact on their retirement savings: 52% say inflation has impacted their savings ‘a lot’, while one in three (35%) say inflation has had a minor impact. Only 12% say inflation has not impacted their retirement savings at all.
One in three (32%) retirees relocated after retiring, motivated by lower living costs and being closer to family.
Most retirees who relocated after retiring chose either another area within the same state or city (15%), or to a different state (16%). Moving closer to family (36%) or finding a location with lower costs of living (37%) are the leading reasons for relocating during retirement, followed by pursuing a better lifestyle (31%) and better weather (21%). Only 13% chose to move due to reasons related to health or healthcare, or tax benefits.
Nearly all retirees depend on Social Security payments, while high savers also supplement their income with passive income sources, savings, and retirement plans.
Four in five (80%) retired Americans rely on Social Security payments for retirement, with similar levels of reliance regardless of how much they saved for retirement.
- 78% of those who did not save for retirement rely on Social Security, followed by one in five who also rely on a pension plan (17%) or government assistance (17%)
- Higher savers are also more reliant on their personal savings, workplace retirement plans, pension plans, and passive income:
- Nearly 3 in 5 (59%) of retirees who saved up more than $1 million have some sort of passive income from assets, compared with 36% of those who saved between $250,000 and $1,000,000, and 18% of those who saved between $50,000 and $250,000.
Beyond financial support from external sources or passive income, some retirees remain working: nearly three in ten (28%) retirees are working to supplement their retirement funds. While the majority (71%) of retirees are not working in any capacity, 28% of retirees are still working: 11% say they work because they have to, while 17% say they work because they want to.
Four in ten American workers (40%) are behind on retirement planning and savings, primarily due to debt, insufficient income, and getting a late start
Among workers (those who work part or full time, or are self-employed or own their own business), one in four (23%) have no plans set up for retirement, while 40% say they are behind schedule. Workers also have mixed feelings about their progress compared to friends, colleagues, and peers: 41% feel less prepared than others, while 33% feel about as prepared, and 26% more prepared than others.
Debt and insufficient income are the leading cause of workers feeling behind on their retirement savings: nearly half (48%) cite paying off debt or loans as the main reason for being behind schedule, tied with not having enough income to put into retirement. Four in ten also cite starting saving for retirement too late (40%) and not making enough money (40%) as leading causes for falling behind.
Among the 37% who are ahead of schedule (7%) or on schedule (30%) in retirement savings, more cite an early start in retirement savings (42%) than any other reason. Having low or no debt (38%), home equity or ownership (37%), retirement education (35%), and generous employer-sponsored retirement plans (35%) are nearly as impactful for those who find themselves on or ahead of schedule.
Not your parents’ retirement plan: most workers envision a retirement different from their parents’.
Nearly three in four (73%) of workers say that their personal retirement plans will look ‘very or somewhat different’ from their parents, a pattern consistent across workers of all age groups. Despite a different vision, most (71%) remain optimistic about their ability to meet their retirement goals:
- 44% are cautiously optimistic
- 27% are realistic
- 21% are doubtful
- 9% believe it’s never going to happen
American workers are optimistic about their ability to retire, but face greater challenges compared to previous generations
However optimistic workers are about meeting retirement goals, nearly all believe it is more difficult for them to retire comfortably compared to their parent’s generation: four in five (82%) say achieving a comfortable retirement is ‘much harder or somewhat harder’ to achieve. Only one in five (18%) say it is easier now than before. A majority also (69%) express concern about being able to afford to fully stop working or retire, and 80% are worried that Social Security will not be enough to live off of in retirement.
Nearly half (52%) of workers plan on working in some capacity after retirement.
Only one in ten workers (11%) have absolutely no plans to work after retirement: 36% say they are not sure, while 52% plan on working, either because they need to supplement their income (27%) or because they want to work (26%).
Expectations vs. reality: workers grapple with life after retirement as they brace for looming caregiving responsibilities and work for supplemental income
Travel and hobbies are the leading retirement pursuits among workers, followed by spending time with family and focusing on health and wellness. However, fewer workers expect to realistically achieve their ideal pursuits:
- 47% expect to travel in retirement, compared to 64% who hope to .
- 47% anticipate pursuing hobbies and interests in retirement, compared to 62% who consider this ideal.
On the other hand, more workers believe that they will realistically work to support their income (31% realistic vs. 14% ideal) or care for family members (31% realistic vs. 24% ideal).
| Ideally, how would you like to spend your time in retirement? (Select all that apply) | Realistically, what do you think you will do in retirement? (Select all that apply) | Gap | |
| Unweighted N | 4025 | 4004 | - |
| Travel | 64% | 47% | -17pp |
| Pursue hobbies and interests | 62% | 47% | -15pp |
| Spend more time with family | 56% | 48% | -8pp |
| Focus on health and wellness | 48% | 40% | -8pp |
| Making passive income | 35% | 27% | -8pp |
| Volunteer | 29% | 22% | -7pp |
| Caring for family members | 24% | 31% | +7pp |
| Permanently leaving the workforce | 18% | 9% | -9pp |
| Work to support income | 14% | 31% | +17pp |
| Start my own business | 13% | 11% | -2pp |
| Other | 3% | 3% | 0pp |
| No answer | 0% | 0% | 0pp |
