Retirement Savings Gap Leaves Workers Across Four Generations Under Strain

Retirement saving is falling short across age groups, with rising living costs, debt and caregiving responsibilities competing with workers’ efforts to build long-term security. A survey of 6,153 employees at for-profit companies found that nearly eight in 10 say the cost of living makes it harder to save. The results point to a broad planning challenge: many workers expect to depend on their own savings, yet few have a written strategy or professional guidance.

The findings come from Transamerica Center for Retirement Studies (TCRS), in collaboration with Transamerica Institute. The Harris Poll conducted the survey from September 16 to October 17, 2025, as part of TCRS’s 26th Annual Transamerica Retirement Survey.

Across all workers, median household retirement savings are $78,000. Workers estimate they need $650,000 to feel financially secure, leaving a wide gap between current balances and their own stated target. The survey also finds that 65% worry they could work until retirement and still fail to save enough. Another 73% fear Social Security won’t be available when they need it, while 41% count outliving their savings and investments among their biggest retirement fears.

Age shapes the pressure points

Gen Z workers make up 19% of the workforce and report median household retirement savings of $37,000. Many face immediate cash demands: half say they’re struggling to make ends meet, 52% have a side hustle and 28% hold more than one job. Paying off debt is a priority for 56%, while 47% focus on emergency savings and 40% on retirement. One in five, or 22%, have already made a hardship or early withdrawal from a 401(k) or IRA.

Millennials represent the largest workforce share, at 40%, and report median retirement savings of $73,000. Debt is a major obstacle: 58% say it interferes with their ability to save for retirement. Nearly half, 44%, would rather put off thinking about retirement investing until they get closer to their target date. That delay may leave less time to adjust savings plans as other financial obligations change.

Generation X faces a tighter timeline. Workers in this group, now in their mid-40s to early 60s, report median savings of $113,000, and just 18% say they’re very confident they’ll retire comfortably. More than a third, 36%, expect to retire at 70 or later, or never retire; 53% plan to work during retirement. With 77% concerned that Social Security won’t be there when they retire, 49% expect 401(k)s, IRAs or other personal savings to provide their main retirement income. Recent reporting has also tracked Gen X’s retirement concerns.

Still-working Baby Boomers have the highest median savings, at $263,000, but the balance doesn’t remove the pressure. Fifty-five percent expect to retire at 70 or later, or don’t plan to retire. Forty-two percent expect Social Security to be their main retirement income source, while only 28% have a written financial plan.

Planning support remains limited

The survey highlights a mismatch between workers’ stated preferences and the help they use. Fifty-nine percent would prefer outside experts to monitor and manage their retirement savings, but only 35% currently work with a professional financial advisor. Instead, workers turn to family and friends (35%) and financial services institutions (32%) for personal finance guidance.

Formal planning is uncommon: only 27% of workers have a written financial strategy for retirement. Among those who have estimated a savings target, 44% say they guessed, while 13% got the figure from a financial advisor. TCRS’s report examines the planning gap across four generations.

Early withdrawals add another strain. About one in five workers have tapped retirement accounts before retirement, including 22% of Gen Z, 20% of Millennials and 17% of Gen X. That money can meet an immediate need, but taking it out reduces the assets available for later years. Industry reporting has also identified early withdrawals as a growing concern for long-term retirement readiness.

Caregiving and workplace choices matter

Unpaid caregiving can affect both income and the ability to save. More than one in three workers, or 36%, are serving or have served as unpaid caregivers during their careers. Among them, 88% made at least one work-related adjustment, such as reducing hours or leaving a job. Thirty-five percent say their financial situation worsened as a result. For financial plans, caregiving can alter earnings, savings contributions and the timing of retirement goals.

TCRS recommends that employers promote retirement plan loans over hardship withdrawals, offer phased retirement options and expand support for employees with caregiving responsibilities. These measures address different pressures: access to funds, the transition out of work and the demands that can disrupt a career.

“Retirement security is a shared responsibility among policymakers, employers, and individuals,” said Catherine Collinson, CEO and president of Transamerica Institute and TCRS. Collinson also pointed to workers’ ability to earn income, support their families and save, alongside the long-term funding issues facing Social Security and Medicare.

For advisors, the survey’s central finding is the gap between need and engagement. Many workers doubt their savings will be enough, but most don’t have a written plan and only about a third use a professional advisor. Research on younger savers and generational differences has also highlighted the role of early planning. Debt, caregiving and immediate expenses make that planning harder; the savings figures show why those pressures deserve attention across every career stage.