Nearly Quarter of Americans Don’t Know How Much They’ve Saved for Retirement — Why It Matters
Written by
Vance Cariaga
Edited by
Daria Uhlig
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The lack of adequate retirement savings in the United States has been well documented. A survey conducted by GOBankingRates last year found that more than half of respondents have $10,000 or less saved up. Equally worrisome is the fact that almost one-quarter of Americans don’t even know how much they have saved for retirement, according to new research from the TIAA Institute.
In its “State of Financial Preparedness in a Diverse America” report, released last month, the TIAA Institute found that two-thirds of Americans have at least some money invested in retirement accounts. However, close to one in four don’t know how much they’ve saved — including 24% of current retirees and 22% of those planning to retire. The research was based on a 2023 poll of 1,684 adults.
Not knowing how much you have saved for retirement means you also don’t have a clear plan in place on how to pay bills or fund your lifestyle once you have left the working world.
Hiring a financial advisor could have a major positive impact on retirement planning, according to the TIAA Institute. However, its research found that only 21% of those not retired and 48% of those currently retired consult with a financial professional.
The report also found big differences in retirement savings based on race and ethnicity. More than seven in 10 whites (76%) and Asian Americans/Pacific Islanders (71%) have retirement accounts, but only about half of Black (49%) and Hispanic (52%) Americans have one. A significant number of Hispanic (37%) and Black (28%) Americans who have not yet retired are also unsure of how much they’ve saved.
Here are some other highlights from the TIAA Institute report:
- Fewer than half of respondents ages 22 to 34 expect to leverage either Social Security or pensions in retirement (47% and 15%, respectively).
- Americans are far more likely to have no assets (15% of respondents) or less than $50,000 (29%) than they are to have $500,000 or more (19%). About one in four Black (26%), Native American (26%) and Hispanic (25%) Americans have no liquid investable assets.
- About one-third (34%) of current retirees and one in four (26%) non-retirees who are planning to retire understand how much of their medical expenses Medicare will cover in retirement. Many are simply unsure, including 29% of current retirees and 41% of those planning to retire.
- Fewer than half (47%) of those not yet retired are “very” or “somewhat” confident they’ll retire when planned.
- More than one-quarter (26%) of Black Americans expect they’ll need some kind of paid employment for income during their retirement — at least 10 percentage points higher than any other race or ethnicity.
“We’ve long talked about retiring inequality, but this new data does more to identify gaps, challenges and opportunities,” Surya Kolluri, head of the TIAA Institute, said in a Jan. 25 press release. “If most people are planning for retirement but can’t follow their plans, that’s a call to action for employers, policymakers, financial advisors, retirement services providers and others. We need to better identify the steps we must take to give people the resources they need.”
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