Overview
- A 2023 NIRS study found the median defined‑contribution account balance for workers aged 21–64 was just $955, showing most people hold little in formal retirement accounts.
- Surveys report that about half of workers expect Social Security to support them in retirement even though the average monthly benefit is roughly $2,081 and trustees project payable benefits could fall to about 75% if nothing changes.
- Broader trends are worsening the shortfall because the U.S. personal savings rate has fallen and more people are taking 401(k) loans or hardship withdrawals that deplete retirement balances.
- Newer coverage shifts to practical individual steps people can take now, such as delaying retirement and Social Security claims, moving savings into low‑fee broad index funds, boosting contributions or side income, relocating to lower‑cost areas, and consulting fee‑only advisors.
- Policy moves like SECURE 2.0 catch‑up rules and efforts to expand plan access offer partial relief but are unlikely to close the gap, so more people will face working longer, tighter household budgets, or reduced benefit income.