Retirement Savings Participation Slipped Sharply, and Workers With a Plan Fared Best

Higher housing costs and routine expenses made it harder for savers across age groups, but workers with a financial plan were far more likely to keep boosting retirement contributions.

The share of baby boomers who said their retirement savings were on track or ahead of schedule dropped from 69% to 60% in one year, according to a recent analysis. Gen X also saw a decline, slipping from 58% to 49%.

The bigger change came in saving behavior. In a Goldman Sachs Asset Management survey of 5,106 people, including 3,612 workers of all ages and 1,494 retirees ages 45 to 75, the share of respondents who increased their retirement savings fell from 55% to 39% in a single year. Goldman said it was the largest one-year drop since 2020.

What is eating into savings

When asked what had the biggest effect on their ability to save for retirement, respondents most often pointed to housing costs and everyday living expenses, each cited by 31%. Debt payments followed at 27%.

For older workers, routine spending was the biggest pressure point. Day-to-day expenses ranked first for Gen X at 37% and for baby boomers at 33%, ahead of housing costs.

Goldman also noted that many retirees leave work earlier than planned, which can shorten the amount of time workers in their 50s have to catch up.

The savers who stayed on course

Roughly 64% of respondents said they had a personalized retirement financial plan, and that group stood out in the results.

• On track or better: 72% with a plan, compared with 33% without one.
• Increased their savings: 46% with a plan, compared with 26% without one.
• Engaged with their retirement savings: 91% with a plan, compared with 62% without one.

The survey shows a strong correlation, not proof that planning alone causes better outcomes. People who make formal plans may also have higher incomes or less debt.

Still, Goldman said staying actively involved in a plan matters. A plan also forces the hard questions people often delay: how much is enough, when the goal should be reached, and what to cut if the math does not work.

What still matters for the current year

For workplace plans, contributions usually must be taken from paychecks before the plan year ends, which is Dec. 31 for most plans. That leaves only the final paychecks of the year to make changes.

The current contribution limits allow workers to put $24,500 into a 401(k), plus a $8,000 catch-up contribution for people age 50 and older, for a total of $32,500. Workers ages 60 to 63 can make a larger $11,250 catch-up contribution instead. Increasing your deferral rate now spreads the added savings across the remaining paychecks, and if your employer permits it, a year-end bonus can also be directed into the plan.

There is also a change for higher earners. Beginning in 2026, workers whose prior-year employer wages were above $150,000 must make catch-up contributions on a Roth basis, which means paying tax on that money now rather than later.

IRAs allow more flexibility. The 2026 limit is $7,500, plus a $1,100 catch-up contribution for those age 50 and older, and contributions can be made through the tax-filing deadline in April 2027.

How to build a plan without guessing

Many workers begin with free resources. A 401(k) provider may offer planning tools or sessions at no added cost, and a retirement calculator can help estimate whether current contributions are enough to reach a target.

The survey suggests most people still want a human being involved in major decisions. Sixty-three percent said they prefer human guidance for retirement income decisions and tax-related planning, even though 51% have used AI for retirement planning.

It also helps to understand how advisors are paid and what questions to ask before agreeing to anything.

If you have $100,000 or more invested, SmartAsset offers a free matching service that connects you with up to three fiduciary financial advisors, with no obligation to hire any of them. The questionnaire takes about 10 minutes, asks for a phone number near the end, and lets you decide whether and when to respond. SmartAsset makes the match, and the advisors provide the advice.

The checkup that should not wait

Open your most recent pay stub and look for the percentage going into your retirement plan. If it has not changed in years, the remaining paychecks of the year may be the last chance to alter what gets added to your account this year.