Millions of Americans are entering retirement with far less savings than financial experts recommend, according to a new survey from Clever Real Estate. Rising living costs, reduced retirement contributions, and growing financial pressures are leaving many workers worried they will not have enough money to retire comfortably.
The survey of U.S. workers found the median worker expects to retire with $515,000—about half the roughly $1.03 million estimated to fund a 20-year retirement for someone earning the median U.S. salary.
Retirement Savings Fall Short
Workers currently report median retirement savings of $210,000, with many expecting to more than double that amount before leaving the workforce. Even so, the projected total remains well below recommended savings levels.
Nearly 65% of workers say they are behind on retirement savings, while 54% worry they will outlive their retirement funds. About 81% are concerned they will not be able to retire at their preferred age, and 9% do not believe they will ever retire.
Inflation Is Slowing Retirement Saving
Higher living costs continue to make retirement planning more difficult.
About 38% of workers reduced their retirement contributions over the past year, and 18% said they have stopped saving altogether because of rising expenses. Among those cutting contributions, high living costs, housing expenses, and taxes were the most common reasons.
The survey also found 38% of workers have withdrawn money from retirement accounts early, most often to cover everyday expenses, emergencies, debt, or medical bills.
Housing Plays a Major Role
Homeownership continues to separate retirement outcomes.
Homeowners reported median retirement savings of $285,000, compared with $45,000 for non-homeowners. However, 87% of homeowners said housing costs—including property taxes, insurance, utilities, maintenance, and mortgage payments—make it harder to save for retirement.
More than half of homeowners also expect to use their homes to help finance retirement, primarily by selling and downsizing.
Financial Education Makes a Difference
Workers who had taken a personal finance course reported significantly higher retirement savings than those who had not.
Survey respondents with financial education had median retirement savings of $371,000, compared with $95,000 among those without such training. They also expected to retire with higher savings and reported greater confidence in making retirement investment decisions.
Confidence Remains Low
Most workers have regrets about their retirement planning.
About 86% said they wish they had made different financial decisions, with the most common regret being not starting to save sooner. At the same time, 67% said they do not have a detailed long-term retirement plan.
The findings suggest that while many Americans continue saving for retirement, inflation, housing costs, and delayed saving are making it increasingly difficult to build enough financial security for later life.
