February 13, 2026
Typical U.S. Worker Has Less Than $1K Saved For Retirement As Social Security Cuts Loom
The median retirement savings balance rises to $40,000 for workers with a retirement plan, such as a 401(k), IRA, or similar account.
Most U.S. workers have independently saved less than $1,000 for retirement, according to a new report.
Data from the National Institute on Retirement Security reveal that the typical American worker aged 21 to 64 has just $955 in personal savings. That figure includes people with retirement accounts as well as those without access to employer-sponsored plans. The numbers are shocking and paint a bleak picture of the future for workers preparing to enter post-career life.
The median retirement savings balance rises to $40,000 among workers with a retirement plan, such as a 401(k), IRA, or similar account. Even so, many financial advisers say that the amount falls short of what individuals need to retire comfortably.
The report also factors in roughly 56 million U.S. workers who lack access to an employer-sponsored plan. Workers without such access often struggle to build savings because they must manage contributions on their own, in addition to covering current living expenses. Additionally, personal retirement accounts forgo benefits such as employer matching contributions.
This savings gap exists as the Social Security system faces long-term funding challenges. Without congressional action, some estimates suggest Social Security benefits could be reduced by about 20% starting in 2034, a prospect that adds uncertainty to many workers’ retirement planning. Carly Roszkowski, vice president of financial resilience programming at AARP, said the slow growth of personal savings and the struggling Social Security system could lead older adults to work longer out of necessity.
“With the cost of living still high and many people worried that they don’t have enough saved for retirement, the trend of older adults working longer will likely continue,” Roszkowski said in a statement.
The low median savings figure reflects broader economic realities, including stagnant wages, inflation, and rising costs for essentials such as housing and healthcare. Many workers may be forced to rely more heavily on Social Security benefits or delay retirement as they try to close the gap between current savings and future needs.
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