Retirement 2026 Survey: One-Fourth of Working-Age Americans Have Saved Nothing

More than one in five Americans in their prime earning years have no retirement savings at all, according to The Penny Hoarder’s 2026 State of Retirement Report. The survey also found that the median amount saved is under $37,000.

The Penny Hoarder and Pollfish surveyed 1,000 U.S. adults ages 30 to 60 about retirement planning. Key findings included:

• 22% of adults ages 30 to 60 say they have $0 saved for retirement, and 24% are not putting any of their income toward retirement.
• The median amount saved is $36,708. The average is $147,159 when including those with no savings, though that figure is likely lifted by a small number of very wealthy households.
• 28% reduced or paused retirement contributions in the past year to cover current living costs.
• More than a third of adults, or 36%, have taken an early withdrawal or loan from a retirement account. Younger adults ages 30 to 45 are more likely than older adults to tap those funds early, at 41% versus 31%.
• Only 11% say they are extremely confident they can keep up their standard of living in retirement, while 34% are not at all confident.
• 52% expect to work beyond the traditional retirement age.
• 28% say rising living costs are their biggest retirement concern.

The report also looks at how retirement saving differs between Gen X and Millennials, and which group appears to be in a better position. For anyone worried their nest egg is not where it should be, the article also offers practical ideas for strengthening retirement planning, even on a tight budget.

The Typical Retirement Nest Egg

More than half of prime working-age Americans have saved less than $50,000 for retirement, according to the survey.

Surprisingly, the older group ages 46 to 60 is slightly more likely to report having nothing saved, at 23% compared with 22% among those ages 30 to 45. But this older group is also more likely to have a pension, at 17% versus 11%, which may lead some to assume retirement is covered. Still, experts say no one should depend entirely on a single source, including Social Security, to fund retirement. IRAs and workplace 401(k) plans can help diversify savings.

On average, adults ages 30 to 60 have $147,159 when those with zero savings are included, and $189,328 when they are excluded. But those averages may be distorted by the 4% of respondents with more than $1 million saved. The median savings figure of $36,708 is the midpoint and likely a better reflection of what most people have set aside.

How Much Income People Are Saving for Retirement

In an ideal world, Americans would be setting aside enough from each paycheck to retire comfortably. In this survey, respondents said they save an average of about 7% of their income.

But nearly a quarter of respondents, or 24%, said they are saving nothing. That rose to 27% among Gen Xers ages 46 to 60 and stood at 21% among Millennials ages 30 to 45.

Among those who are saving, the breakdown was:

• 23% save 1% to 5%
• 20% save 6% to 10%
• 15% save 11% to 15%
• 7% save 16% to 20%
• 6% save more than 20%

It is not hard to see why retirement savings are hard to build when so many Americans also struggle to maintain an emergency fund. Another survey found that 44% of Americans cannot cover a $1,000 emergency. That makes the 10% to 20% of pre-tax income that experts recommend for retirement feel out of reach for many households.

If saving money feels impossible because your budget is already stretched, a money-saving guide can help you get started.

Where Retirement Savers Keep Their Money

Respondents who are saving for retirement said they use several types of accounts. Employer-sponsored plans such as 401(k)s, 403(b)s and 457(b)s are the most common, with nearly 60% saying they have at least one. That is followed by 22% who keep money in CDs or savings accounts. On the IRA side, 20% have a Roth IRA and 17% have a traditional IRA. Only 14% say they have a pension.

Even so, about one in four across age groups said they do not have any of these retirement vehicles. That puts them behind when it comes to building long-term savings. Employers may match 401(k) contributions up to a certain amount, which is essentially free money, while IRAs can be opened independently of an employer and can add extra investment options. CDs and high-yield savings accounts may offer modest but reliable interest without the risk of investing.

Building a retirement fund takes more than setting money aside. Putting savings in the right kind of account is also important if the money is going to grow enough to support life on a fixed income.

The Biggest Retirement Worries

More than a quarter of respondents said rising living costs are their biggest retirement concern. That matches broader findings showing that inflation and everyday expenses remain a major source of financial stress.

Survey respondents identified their top three retirement worries as:

• Rising cost of living (28%)
• Outliving savings (16%)
• Health care costs (14%)

Overall, 34% of respondents said they are not at all confident they can maintain their standard of living in retirement. Among those ages 46 to 60, that figure rises to 39%. Adults ages 30 to 45 were somewhat more optimistic, with 29% saying the same. Only 11% of all respondents said they were extremely confident.

Cutting everyday costs such as groceries and car insurance can free up money for retirement savings later. For people with high-deductible health plans, boosting Health Savings Account contributions can also help. The money remains yours even after leaving a job, and withdrawals for qualified medical expenses, including Medicare premiums, can be made tax free.

Early Withdrawals and Reduced Contributions

Among respondents who have retirement accounts, 36% said they have taken an early withdrawal or loan. Younger adults ages 30 to 45 were more likely to do so than those ages 46 to 60, at 41% versus 31%.

When money is tight, tapping a retirement account may seem like the only option. But the consequences depend on the account type:

• 401(k). You can borrow from a 401(k) in certain cases, but the loan must be repaid with interest. If you leave your job for any reason, the balance typically must be repaid in full when you file your tax return for that year. If not, it is treated as an early distribution and can trigger taxes plus a 10% penalty.
• Traditional IRA. Withdrawals before age 59½ generally trigger income taxes and a 10% penalty. Some exceptions exist, such as for first-time home purchases or qualified education expenses, but income taxes still apply.
• Roth IRA. Roth contributions can be withdrawn at any time without taxes or penalties because the money was already taxed before going into the account. However, earnings withdrawn before age 59½ can still face taxes and a 10% penalty.
• Savings accounts. If retirement money is kept in a savings account, it is usually the easiest place to access in an emergency, with no taxes or penalties on withdrawals. But taking from it still means less money for the future.

Many people have also cut back on retirement saving just to stay afloat. More than a quarter of respondents, or 28%, said they reduced or stopped contributions in the past year, and another 16% said they were not contributing in the first place.

Experts often recommend regular contributions because compound interest and time can do a lot of the work. But that advice is difficult to follow when the immediate challenge is paying rent, buying groceries, and covering other monthly bills.

Paying Down Debt Versus Saving for Retirement

Debt can create problems right now, while retirement can feel distant. That is why 25% of respondents said they are prioritizing debt repayment over retirement savings, while only 7% are focusing more on retirement. Others said they are:

• Trying to do both equally (33%)
• Able to do neither (12%)

Gen Xers are slightly more likely than Millennials to say they are balancing both, at 35% versus 31%. Older respondents are also somewhat more likely to say they can do neither, at 14% compared with 11%.

The findings show how debt can hold Americans back in more than one way. It affects monthly budgets, credit scores and also the ability to save. That matches other survey results showing that debt has delayed retirement saving for many people.

Paying off debt matters, but it can be difficult to know whether debt should come first or whether retirement savings should remain a priority.

Working After Retirement

Few people dream of working in retirement, but many expect they may have to. More than half of Americans, or 52%, think they will work after retiring, while only 11% say they definitely will not.

If savings come up short, the most common backup plan is part-time work. Nearly 40% said they would do that, while 35% would stay in their current job longer and 22% would cut spending. Fewer said they would downsize their home, at 16%, or move somewhere cheaper, at 14%.

Working longer can offer more than income, including social connection and mental stimulation. It is also possible to work while collecting Social Security benefits.

Even so, the most effective move is to start saving now and keep that money in an account where it can grow. For anyone feeling overwhelmed, there are resources available to help build a retirement plan at any age.