The typical U.S. worker has $955 saved for retirement, report finds

The average American worker has less than $1,000 saved for retirement, underscoring the financial strain millions could face in old age, according to a new report from the National Institute on Retirement Security. Edited by Alain Sherter In:

The average American worker has less than $1,000 saved for retirement, underscoring the financial strain millions could face in old age, according to a new report from the National Institute on Retirement Security.

That figure factors in workers with 401(k) and other retirement plan savings, while also including the roughly 56 million U.S. workers who lack access to an employer-sponsored retirement plan. Median savings for all employed adults between the ages of 21 and 64 amounted to $955, the nonpartisan think tank found, tapping data from the U.S. Census Bureau's Survey of Income and Program Participation.

For workers who do have retirement savings, the median balance stands at $40,000, the group found — a far cry from the roughly $1.5 million that Americans say they need to retire comfortably. Adding to the financial pinch is Social Security's funding shortfall, which if not addressed by Congress could result in a roughly 20% cut to benefits starting in 2034.

"While there have been some noticeable improvements in the retirement savings system in recent years, many workers are still left out of that system, and major challenges lie ahead," the report noted. 

The findings come as the Trump administration is rolling out so-called Trump Accounts, aimed at helping millions of children build a nest egg to eventually buy a home, fund their education or start a business. The accounts could also be used to help save for retirement, Treasury Secretary Scott Bessent has said.