Planning for retirement should be a priority for workers of all ages. Though most Americans have a retirement plan, many feel behind on their savings due to competing financial obligations and inflated prices.
When employer-sponsored 401(k)s began replacing pension plans, the burden of retirement planning shifted from employer to employee. However, as the cost of living rises, making consistent retirement plan contributions has become increasingly difficult.
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Opting to reduce or pause 401(k) or IRA contributions may help households get by in the moment, but it may also hurt long-term savings and derail retirement plans. Over time, not maximizing retirement contributions can leave hundreds of thousands of dollars on the table.
Blackrock recently released staggering statistics about how Americans plan for retirement, and the results indicate that some workers may not be financially prepared for the future.
A retired couple is seen discussing finances in their kitchen. The rising cost of living and relatively low 2025 Social Security COLA increase has made it difficult for retirees to make ends meet.
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Blackrock CEO Larry Fink has a controversial take on retiring at 65
The estimated amount needed to retire has increased substantially over the past decade. Blackrock analysts found that Americans now estimate they will need over $2 million saved for retirement.
However, the average American only has $87,000 saved in their retirement accounts.
An astonishing 33% have no retirement savings at all, and 69% have less than $150,000 saved.
Younger workers, Black workers, Hispanic workers, and working mothers are most at risk of having insufficient retirement savings.
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Blackrock CEO Larry Fink has suggested that the standard retirement age is outdated and should be reconsidered in light of longer lifespans, retirement saving challenges, and the current strain on Social Security.
“No one should have to work longer than they want to,” Fink wrote. “But I do think it’s a bit crazy that our anchor idea for the right retirement age – 65 years old – originates from the time of the Ottoman Empire.”
Though extending working years is one way to reduce the risk of outliving retirement savings, most Americans believe more government intervention is necessary.
Americans want more retirement support from the federal government
Less than one in five workers are “very confident” they will have enough saved to keep them afloat throughout their entire retirement.
This uncertainty, coupled with the looming uncertainty of Social Security, has prompted bi-partisan voter support of government intervention to help retirees.
Related: Average Americans are struggling with a major retirement challenge
An overwhelming majority of voters — 80% — believe that Congress and the Trump administration should pass legislation helping Americans plan and save for a stable retirement.
Margaret Spellings, President and CEO of the Bipartisan Policy Center, agrees that federal support for retirees through legislation is necessary now more than ever.
“With Americans living longer than ever, lawmakers must prioritize policy that supports personal savings,” she said. “BPC has long championed such efforts and will continue working with leaders of both parties to ensure all Americans have access to tools and resources to enjoy financial security in their golden years.”
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