Many working Americans remain unprepared for retirement, according to a new report from the National Institute on Retirement Security.
The report found that workers who had money saved in workplace retirement accounts, such as 401(k)s, had a median balance of $40,000 in December 2022. When all workers are included — even those with no retirement savings — the median amount saved was just $955.
The research also found that access to retirement plans remains uneven. Public-sector workers are more likely than private-sector employees to have and participate in employer-sponsored plans, while Hispanic workers and those with lower incomes and education levels are less likely to have access or participate.
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The study also highlights the continued importance of Social Security, which accounts for about half of the income for the typical older adult.
There are long-term concerns over the future of Social Security payments.
The Committee for a Responsible Federal Budget said legislation passed in July 2025 will reduce Social Security’s revenue from the income taxation of benefits. The group says this change will cause Social Security to become insolvent sooner than previously expected.
A report from Social Security’s trustees states there are enough funds to fully pay benefits until 2034, but without congressional intervention, benefits will be cut. The committee projects Social Security will become insolvent by the end of 2032.
