Nearly eight in ten U.S. workers say the rising cost of living is making it harder to save for retirement, according to a new report that underscores the widening gap between retirement goals and actual savings across four generations. The study, Stressed and Strained: Four Generations Strive for Retirement Security, was released by the nonprofit Transamerica Center for Retirement Studies (TCRS) and Transamerica Institute. The Harris Poll surveyed 6,153 workers at for-profit companies between September 16 and October 17, 2025, as part of TCRS's 26th Annual Retirement Survey.
The findings paint a sobering picture for financial advisors: 65% of workers doubt they will save enough by retirement, 73% worry Social Security will not be available, and 41% fear outliving their assets. Median household retirement savings across all workers stand at $78,000—far below the $650,000 workers themselves estimate they need for financial security. Catherine Collinson, CEO and president of Transamerica Institute and TCRS, called the current environment a "perfect storm" of inflation, uncertainty about Social Security, and competing financial priorities.
Generation-by-generation savings gaps
Generation Z workers, who now make up 19% of the workforce, have median retirement savings of just $37,000. Half struggle to make ends meet, 52% have a side hustle, and 28% hold more than one job. Debt repayment (56%) and emergency savings (47%) rank ahead of retirement saving (40%) for this cohort, and 22% have already taken a hardship or early withdrawal from a retirement account.
Millennials, the largest workforce segment at 40%, report median savings of $73,000. Nearly six in ten (58%) say debt interferes with their retirement saving, and 44% prefer not to think about retirement investing until closer to retirement. Generation X, now in their mid-40s to early 60s, shows the starkest strain: median savings of $113,000, with only 18% very confident they can retire comfortably. More than a third (36%) expect to retire at 70 or later or not at all, and 53% plan to keep working in retirement.
Baby Boomers still working carry the largest balances—$263,000 in median savings—but 55% expect to retire at 70 or later or not at all. Four in ten (42%) expect Social Security to be their primary retirement income source, and fewer than three in ten (28%) have a written financial plan. This planning gap is a recurring theme in recent retirement surveys.
Advisory gap and early withdrawals
The report highlights a critical disconnect: while 59% of workers prefer to rely on outside experts to manage retirement savings, only 35% currently use a professional financial advisor. Many instead turn to family and friends (35%) or financial institutions (32%). Early withdrawals are widespread—22% of Gen Z, 20% of Millennials, and 17% of Gen X have tapped retirement accounts early, a pattern that threatens long-term readiness.
Only 27% of workers have a written financial strategy for retirement. Among those who have estimated a savings target, 44% arrived at the figure by guessing, and just 13% received it from a financial advisor. This suggests a structural failure in planning engagement that advisors can address, especially as healthcare costs continue to outpace general inflation.
Caregiving and employer responsibility
Caregiving adds another layer of strain. More than one in three workers (36%) have served as unpaid caregivers during their careers, and 88% of them made at least one work-related adjustment, such as reducing hours or quitting. Thirty-five percent say their financial situation worsened as a result. Advisors building comprehensive plans should factor in caregiving responsibilities, which can derail even the best-laid savings strategies.
The report also calls on employers to promote retirement plan loans over hardship withdrawals, offer phased retirement options, and expand support for caregiving employees. For advisors working with corporate clients, these recommendations offer entry points for plan design and employee education. As Collinson noted, "Retirement security is a shared responsibility among policymakers, employers, and individuals." The full report is available on the TCRS website.
