America’s retirement story has been gradually evolving for years, and a fresh report from Transamerica suggests the next chapter could be deeply unsettling. If you have ever wondered whether your savings are truly on track, the latest national numbers paint a picture you cannot afford to ignore.
Transamerica’s new findings show how rising costs, fragile job security, and stretched budgets are reshaping the way millions of households think about their retirement futures. The report does more than sound alarms. It also points to specific steps families can take to regain a real financial footing.
Transamerica’s warning about America’s retirement progress
Fewer than six in 10 U.S. residents (59%) believe they are building a large enough retirement nest egg, Transamerica’s report finds. That figure has barely budged from 55% in 2020, when the U.S. economy was shuttered during the worst stretch of the pandemic.
Confidence in achieving a comfortable retirement remained flat at 66%, with 22% very confident and 44% somewhat confident. Among non-retired adults surveyed, the share saving for retirement edged up from 65% to 69% over the five-year period.
“Americans are navigating a turbulent economy, the high cost of living, the impacts of AI and robotics on the future of work, and the nerve-wracking countdown to the depletion of the Social Security trust funds…. These megatrends are driving the doldrums in Americans’ retirement outlook,” said Transamerica Institute and TCRS CEO Catherine Collinson.
Median household retirement savings rose from $44,000 to $56,000 during that stretch, a modest gain that has not kept pace with living costs. These slow shifts confirm what many households already feel each month: Paychecks barely stretch far enough to cover today’s bills and tomorrow’s goals.
The pressures forcing the retirement outlook into a stall
Several powerful forces are squeezing household budgets and confidence, and Transamerica points to a small set of pressures shaping the broader retirement security crisis.
Key pressures identified by Transamerica’s research
- Only 15% of Americans say they feel very optimistic about their future amid today’s rapid pace of economic, technological, and social change, according to the Transamerica survey.
- About 56% report that their daily lives have been negatively affected by the broader economy, while 44% cite high health care costs.
- Roughly 43% say steep housing prices weigh on them, and 28% feel pressure from extreme weather or natural disasters affecting their region. Pew Research has found 69% of Americans are “very concerned” about the cost of housing, and the Urban Institute’s American Affordability Tracker reports that nearly half of people in American families cannot afford the true cost of living.
- Nearly half of Americans who are not yet retired (46%) worry that AI and robotics will make their job skills no longer needed. The survey also identifies a broader pattern of fatigue, with Americans saying they feel exhausted by competing financial, family, and personal demands.
- Nearly half of Americans, about 46%, say they often feel exhausted and burnt out by competing financial, family, and personal demands.
- About 62% agree they could work until retirement and still fail to save enough money to comfortably meet basic future needs, a concern echoed in CBS News reporting on the deepening affordability crisis.
These pressures have caused strains across income levels and age groups in America.
What Transamerica’s findings mean for your everyday financial life
The numbers in Transamerica’s report are closely tied to your daily routine, your monthly budget, and your future plans. Each percentage point reflects households’ decisions about whether to refill an emergency fund, cover a medical bill, or set aside money for retirement contributions.
When most Americans say they cannot save enough, the message is clear: Look closely at your own savings approach. If your household earns near the median U.S. income, that $56,000 median retirement savings figure is closer to reality than many admit.
Standard retirement guidance from Fidelity suggests most working Americans should aim to have roughly 10 times their final annual salary saved by age 67. For someone earning $60,000 a year, that target sits near $600,000, far above the median nest egg most working Americans hold today.
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The combined Social Security trust funds could be depleted by around 2034, the Social Security Administration projects, raising real questions about your future retiree benefits. Even if Congress acts before then, your future monthly check could be smaller, and personal savings may need to fill the gap.
That makes Transamerica’s findings more than headlines, because they directly shape how much you may need to set aside while you remain employed today. Health care costs add another quiet pressure point: Fidelity’s most recent estimate puts retiree health care costs at around $172,500 per 65-year-old.
Action steps Transamerica says can help you take charge
Transamerica’s report concludes that, despite headwinds, families can still make meaningful progress, and the firm identifies five specific action steps to follow carefully.
The five action steps highlighted
- Build personal finance knowledge, since only 20% of Americans say they have a strong working knowledge of money, debt, and taxes.
- Focus seriously on finances through budgeting, financial planning, and securing online accounts, given that fewer than half of Americans regularly budget. The Consumer Financial Protection Bureau offers free budgeting worksheets and account-security guides for anyone starting that work.
- Formulate a clear written retirement strategy, because fewer than one in four Americans, just 23%, currently maintain such a plan. Schwab’s annual Modern Wealth Survey has similarly found that Americans with a written financial plan report greater confidence and are more likely to save consistently.
- Hold candid conversations with trusted loved ones, since only 16% of Americans frequently discuss savings and investments with family or close friends. A silence Fidelity’s Couples & Money Study has linked to weaker household financial outcomes.
- Seek out a qualified professional financial advisor when needed, given that only 31% of Americans currently use one to guide financial decisions.
None of these steps requires sudden wealth or perfect timing, which is what makes Transamerica’s framework feel realistic for most ordinary working households. Consistent action over the years often outperforms perfect plans, and even one of these moves can shift your retirement trajectory in a measurable way.
Where Transamerica’s roadmap may fall short for some households
Transamerica’s action steps outline a structured approach, but they largely reflect households with some degree of financial flexibility, steady savings capacity, or access to professional guidance. That may not reflect the reality for families managing tight monthly budgets, where immediate expenses tend to take priority over longer-term planning.
In practice, many households focus first on creating a basic financial cushion before turning attention to retirement contributions or formal planning. Without that buffer, consistent investing or advisory services can feel out of reach rather than actionable.
Different life stages can also shift how relevant certain steps feel. Workers earlier in their careers, especially those concerned about job stability or technology-driven changes, may place greater emphasis on skill development and income stability.
Related: Five ways to tap into your home equity after retirement
