Industry News

On February 5, 2026, the National Institute on Retirement Security (NIRS) released its report, Retirement in America: An Analysis of Retirement Preparedness Among Working-Age Americans. In the report, NIRS identified several key questions regarding retirement savings, access to retirement plans, and how saving for retirement interacts with other financial commitments, such as owning a home and repaying student loan debt. In addition, NIRS examined how various groups of workers are managing their preparation for retirement and potential areas that workers should try to improve.

The study focuses on working-age adults (ages 21-64) that are currently employed and also includes an analysis of adults age 65 and older. It examines the interaction of trends in retirement preparedness in conjunction with other major financial commitments. Among working-age Americans, the report also identifies some concerning trends in retirement preparedness and the outcomes that may vary by age, gender, race, income, and education.

Based on the U.S. Census Bureau’s Survey of Income and Program Participation (SIPP), the report finds that, “many workers still lack access to employer-provided retirement plans, have minimal savings, and face growing tradeoffs between saving for retirement and meeting basic financial needs such as housing and student loan repayment. While recent legislative efforts have made incremental improvements to the retirement system, the report notes that major challenges remain, including the lack of access to retirement savings systems and continuing uncertainty around the future of Social Security.”

Some of the key findings include:

• Among the U.S. workforce, the median amount of retirement savings is less than $1,000.
• About 52% of retirement income for older Americans is derived from Social Security.
• As of December 2022, about 17% of U.S. workers had a defined benefit pension plan.
• Since many working Americans lack access to employer-provided retirement plans, access gaps will continue to exist.
• Importantly, public sector workers are more likely to have plan sponsorship and participation as compared to private sector workers.
• Workers with lower incomes or levels of education and Hispanic workers are less likely to have access or participate in employer-provided retirement plans.
• Retirement savings account for less than other assets on average for working adults.
• Nearly 25% of older Americans have housing debt.
• Although workers with student loan debt are more likely to have access to and participate in retirement plans, they generally have lower account balances.

According to the report, “Social Security constitutes half of income for the typical older adult. Income from retirement plans – both defined benefit (DB) and defined contribution (DC) – represents about a fifth of income on average. Income from earnings is also an important income source for many older adults.” It adds, “The typical employee contribution rate to a defined contribution savings plan is between five and six percent and the typical employer contribution rate is just under three percent.” The report also stated, “Retirement savings represent about a quarter of financial assets on average for the typical working adult, while home equity represents about a third.”

The report is available here.