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Five years after the economic upheaval caused by the COVID-19 pandemic, Americans have made only modest progress toward achieving retirement security, according to a new report from the Transamerica Center for Retirement Studies and Transamerica Institute. 

The findings suggest that while more people are saving for retirement, many remain uncertain about their financial future. 

The report, Life and Money: Retirement Security in the USA, analyzed retirement trends from 2020 through 2025 and found what researchers described as “lackluster” improvements in key measures of retirement readiness. The study is based on surveys of more than 60,000 Americans conducted over the five-year period. 

One of the report’s central findings is that only 59% of Americans believe they are currently building — or have already built — a retirement nest egg large enough to meet their future needs. While that represents a slight improvement from 55% in 2020, researchers say it is far from a sign that retirement security has substantially improved. 

Retirement confidence has barely budged. Two-thirds of Americans, 66%, say they are confident they will be able to retire comfortably, the same percentage recorded at the height of the pandemic in 2020. Only about one in five respondents describe themselves as “very confident.”

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However, some encouraging signs

The study found some encouraging signs. Among workers who have not yet retired, the percentage saving for retirement increased from 65% to 69% over the five-year period. Median household retirement savings also rose, increasing from $44,000 in 2020 to $56,000 in 2025. Even so, researchers caution that those gains may not be enough to offset higher living costs and longer life expectancies. 

Many Americans remain deeply worried about retirement. The survey found that 62% believe they could work throughout their careers and still fail to save enough for retirement. Respondents cited rising living expenses, economic uncertainty, and concerns about the future of Social Security as major obstacles to long-term financial security. 

Health-related concerns loom especially large. Americans’ top retirement fear is declining health that requires long-term care, followed closely by concerns that Social Security benefits could be reduced in the future. Many also worry about outliving their savings, losing their independence, or facing healthcare expenses they cannot afford.

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Growing challenges

The report arrives as policymakers face growing pressure to address the long-term financing challenges confronting Social Security and Medicare. Catherine Collinson, CEO and president of Transamerica Institute and the Transamerica Center for Retirement Studies, said maintaining those programs will be critical to improving retirement outcomes for future generations. 

Researchers concluded that retirement security remains a work in progress. While Americans have demonstrated resilience by continuing to save despite economic disruptions, the pace of improvement has been slow, leaving millions uncertain about whether they will have enough money to sustain themselves in retirement.