The financial foundation of middle-class retirement is showing cracks, according to a new report from the Transamerica Center for Retirement Studies (TCRS) and Transamerica Institute. The study, based on a survey of more than 7,600 U.S. residents with household incomes between $50,000 and $200,000, reveals that while many remain optimistic about daily life, a confluence of rising costs, persistent debt, and caregiving responsibilities is eroding their ability to save for the future.
The report, titled The American Middle Class: Influences of Gender on Retirement Security, underscores a widening gap between aspirations and financial reality. As of late 2025, the median middle-class household had accumulated just $64,000 in retirement accounts—a figure that falls far short of what most financial planners deem necessary for a secure retirement. The findings come at a time when many employers report workers delaying retirement due to inflation, yet the data suggests that even extended careers may not bridge the savings gap.
Debt and inflation squeeze savings
The cost of living remains the dominant obstacle. Eight in ten (80%) middle-class workers who have not yet retired agreed that today's high cost of living makes it harder to save for retirement. Fifty-seven percent said debt directly interferes with their ability to set aside money, and 55% reported that their income is insufficient to make meaningful retirement contributions. In response to inflation, 72% have taken at least one action, such as cutting day-to-day spending (40%), drawing down savings (34%), or accumulating new credit card debt (23%). Paying off debt is now the top financial priority for 58% of respondents, surpassing saving for retirement (50%) and building emergency funds (42%).
Gender disparities persist
The report highlights a consistent gender gap in retirement preparedness. Women have saved a median of $49,000 in retirement accounts, compared with $82,000 for men. Women are also more likely to prioritize basic survival: 35% said their top financial goal is simply covering living expenses, versus 27% of men. These differences compound over time, driven by wage disparities, career interruptions for caregiving, and longer life expectancy. Women are more likely to expect Social Security as their primary retirement income (31% vs. 25% for men), while men are more likely to rely on 401(k)s, 403(b)s, or IRAs (34% vs. 29%). Burnout is also more prevalent among women, with 49% reporting frequent exhaustion, compared with 40% of men.
Retirement age expectations vs. reality
One in three middle-class workers (33%) expect to work until age 70 or older, or not retire at all. Women are slightly more likely to hold this expectation (36% vs. 30%). However, nearly half of retirees (48%) left the workforce earlier than planned, often due to health issues, family demands, or job loss. Women who retired early were more likely to cite family reasons (30% vs. 17% of men), while men were more likely to cite employment factors (62% vs. 44%). Only 17% of men and 11% of women retired early because they had saved enough. The rise of artificial intelligence adds another layer of uncertainty: 45% of workers worry that AI and robotics are making their job skills obsolete, with women more concerned (48% vs. 41%).
Caregiving as a hidden risk
More than one in three middle-class workers (36%) are currently serving or have previously served as a caregiver for a family member or friend, a role that often curtails earning potential and retirement contributions. An equal share of retirees (36%) have devoted significant time to caregiving since leaving the workforce. More than half of retirees (53%) expect to rely on family and friends if their health declines, raising questions about the adequacy of informal care networks. Men are more likely than women to expect their spouse to serve as primary caregiver (43% vs. 32%).
The report's authors call for policy and employer support to address gender disparities, recognize caregivers, and ensure the sustainability of Social Security and Medicare. As Catherine Collinson, CEO and president of Transamerica Institute and TCRS, noted, "The middle class must be able to afford everyday life, have income to save, and have meaningful employment." For advisors, the findings reinforce the need to stress-test retirement plans against inflation, debt, and caregiving scenarios—especially for female clients. The data also aligns with broader trends, such as lower retirement confidence among childless Americans, and the growing reliance on age-based target date funds as default options. As the retirement landscape evolves, the middle class faces a future that may require more than just working longer.
