Retirement Living takes an unbiased approach to our reviews. We may earn money when you click a partner link. Learn More

› Retirement News

A typical worker expects to retire with only half the savings experts say they’ll need

Survey finds nearly half of American workers are behind on retirement savings

Avatar photo
By:
Avatar photo

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:

  • A new survey finds the typical American worker expects to retire with about $515,000, roughly half of what financial experts estimate is needed for a comfortable retirement.
  • Nearly half of workers say they are behind on retirement savings, with many citing inflation, debt, and day-to-day living expenses as major obstacles.
  • The findings highlight a widening gap between retirement expectations and financial reality as Americans struggle to build adequate nest eggs.

American workers expect to retire with barely half the savings financial experts say they will need, underscoring a growing retirement preparedness gap fueled by rising living costs and financial uncertainty.

According to a new report from Clever Real Estate, the typical U.S. worker expects to retire with about $515,000 in savings. For someone earning the median annual salary of $64,220, however, financial experts estimate roughly $1.03 million would be needed to fund a 20-year retirement, assuming retirees replace about 80% of their pre-retirement income.

The survey found that 46% of workers believe they are behind where they should be in saving for retirement, while only a minority feel they are on track to meet their goals. Inflation, housing costs, debt, and everyday expenses continue to make it difficult for many households to save consistently.

Adjusted expectations

The report also found that many Americans have adjusted their retirement expectations. Some anticipate working longer than they originally planned, while others expect to scale back their lifestyles after leaving the workforce.

Retirement confidence remains mixed. Although many workers believe they will eventually be able to retire, concerns about outliving their savings, rising healthcare costs, and the future of Social Security continue to weigh on financial planning decisions.

Financial planners generally recommend replacing between 70% and 80% of pre-retirement income during retirement. For a worker earning the median U.S. wage, that translates into a retirement nest egg exceeding $1 million under commonly used planning assumptions. 

The findings are broadly consistent with other recent surveys showing Americans recognize they need significantly more money to retire comfortably than they currently expect to accumulate. Northwestern Mutual’s latest Planning & Progress Study, for example, found Americans believe they need an average of $1.46 million to retire comfortably, though many doubt they will reach that goal.

How to catch up

Experts say workers who are behind on retirement savings can improve their outlook by increasing contributions to workplace retirement plans, taking full advantage of employer matching contributions, using catch-up contributions after age 50, and delaying retirement if possible. Even a few additional years of work can substantially increase retirement income while reducing the number of years savings must support. 

The Clever report suggests that despite growing awareness of the importance of retirement planning, many Americans continue to struggle with the financial realities of balancing current expenses against long-term savings goals. As a result, the gap between what workers expect to have saved and what experts believe they will need remains substantial.