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80% of Americans believe the nation faces a retirement crisis

Rising living costs are making retirement security increasingly difficult

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Mark Huffman
Reporter

Mark Huffman has covered consumer issues since 2004, with a special focus on protecting and empowering older adults. A former news correspondent for the Associated Press Radio Network, Westwood One, and ConsumerAffairs, Mark brings decades of journalistic experience to RetirementLiving.com. He is passionate about giving consumers a voice and helping them make informed decisions. Mark has also created educational content, including Senior Scam Alert, a video resource designed to help seniors recognize and avoid fraud. He holds a B.A. from the University of Kentucky and lives with his family in Richmond, Virginia.

Updated:

key insights:

  • Retirement fears are growing: Eighty percent of Americans believe the U.S. faces a retirement crisis, up from 67% in 2020, while 61% worry they won’t achieve financial security in retirement.
  • Everyday expenses are squeezing savings: Rising healthcare costs, inflation, housing expenses, and debt are making it harder for Americans to put money aside for their later years.
  • New financial technologies face skepticism: Nearly half of Americans are uncomfortable with artificial intelligence providing financial advice, while 77% consider cryptocurrency in retirement plans risky.

Americans are increasingly pessimistic about their ability to retire comfortably, with eight in 10 now believing the nation faces a retirement crisis, according to a national survey that paints a troubling picture of retirement security.

The National Institute on Retirement Security (NIRS) found that 80% of Americans believe the country is experiencing a retirement crisis, compared with 67% in 2020.

The organization’s Retirement Insecurity 2026: Americans’ Views of Retirement report also found that 61% of respondents worry they will not achieve financial security during retirement.

The findings suggest that the problem extends beyond whether Americans are saving enough. For many households, the rising cost of everyday necessities is making it increasingly difficult to save anything at all.

“Americans are telling us that retirement security is becoming harder to achieve as they struggle with the affordability of everyday life,” said Dan Doonan, NIRS executive director and a co-author of the report.

Rising costs are crowding out retirement savings

The survey found that 68% of Americans believe preparing for retirement is becoming more difficult, compared with 58% in 2020.

When asked what makes retirement planning harder, respondents identified several major financial pressures.

Healthcare costs and inflation topped the list, each cited by 91% of respondents. Long-term care expenses followed at 89%, while 88% pointed to wages failing to keep up with expenses and 87% identified increasing debt.

Those concerns are already affecting Americans’ ability to build retirement savings.

Forty-one percent said paying down debt prevents them from saving more, while 39% cited high housing costs. Emergency expenses were an obstacle for 30%, and healthcare bills were identified by 25%.

Nearly eight in 10 respondents said the average worker cannot save enough independently to achieve a secure retirement.

The findings underscore a growing conflict between meeting immediate financial obligations and preparing for a retirement that may still be decades away.

Nearly half have less than $100,000 saved

The survey also revealed significant gaps in retirement savings. Nearly half of respondents, 47%, reported having less than $100,000 saved for retirement, including 18% who said they had no retirement savings at all.

More than half, 52%, said they did not begin saving until age 30 or later. The research also identified widespread uncertainty about how much retirement income savings can actually provide.

Only 9% correctly identified the approximate annual income that $100,000 in retirement savings could generate under a commonly used withdrawal guideline.

Using a 4% initial withdrawal rate, $100,000 would provide approximately $4,000 in income during the first year of retirement, or about $333 per month, before taxes.

That calculation illustrates why even a six-figure retirement account may not provide enough income to maintain a comfortable lifestyle without additional sources such as Social Security or a pension.

Americans skeptical of AI and cryptocurrency

The survey also explored Americans’ attitudes toward newer financial technologies.

Although 63% said they had used an artificial intelligence tool, 45% expressed discomfort with AI playing a role in providing financial advice.

Sixty-one percent said they had not used AI to answer questions about their finances, investments, or retirement.

However, respondents were more receptive to using AI for specific financial tasks.

Thirty-eight percent expressed interest in using AI for budgeting, 34% for investing, 32% for retirement planning, and 30% for paying down debt.

Cryptocurrency generated even greater skepticism. Seventy-seven percent said including cryptocurrency in workplace retirement plans is risky, including 46% who considered it very risky. Fifty-three percent opposed employers offering cryptocurrency as an investment option in retirement plans.

The findings suggest that while Americans may welcome technology that helps them manage their finances, many remain reluctant to trust newer investment products with money intended to support them in retirement.

Despite changes in workplace retirement benefits over the past several decades, traditional pensions continue to enjoy strong public support.

The survey found that 76% of Americans have favorable views of pension benefits, while 69% believe pensions do more than 401(k)-style savings plans to help workers achieve retirement security.

When presented with two otherwise identical job offers, 57% of workers said they would choose the position offering a pension rather than a 401(k)-style retirement plan.

Among workers without pensions, 84% said they would be more likely to remain with their employer if a pension were offered.

Retirement benefits also remain an important factor in employment decisions, with 75% of current workers describing them as very or extremely important when evaluating job opportunities.

Americans want Washington to act

The survey found broad dissatisfaction with policymakers’ response to retirement insecurity.

Eighty-four percent said leaders in Washington do not understand the retirement savings challenges facing ordinary Americans.

Meanwhile, 85% said policymakers should make retirement security a higher national priority, up from 76% in 2020.

Social Security is another major source of anxiety. Seventy-six percent expressed concern about possible benefit reductions if Congress fails to address the program’s financial problems.

Doonan said improving retirement security will require more than encouraging Americans to save.

The report points to the need to address affordability pressures, expand access to workplace retirement benefits, and improve financial education.

For consumers, the findings reinforce the importance of understanding how much retirement income their savings are likely to produce, reducing high-interest debt when possible, and taking advantage of employer retirement benefits.

But the larger message is that retirement planning is becoming increasingly difficult for Americans who are already struggling to cover today’s expenses.