The State of Retirement Security in America

Americans across all income levels are struggling to save enough for a financially secure retirement. What’s driving retirement insecurity, and how can employers help?

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By Matt Bahl, Riya Patil, Tanya Ladha

Category:

Retirement, Savings

Monday, June 24, 2024

The State of Retirement Security in America

Helping Workers Build Retirement Savings

More than half (55%) of working-age adults are concerned that they will be unable to have a financially secure retirement.¹ What’s more, nearly half (47.7%) of working-age adults are not covered by workplace retirement plans – a critical tool in saving for retirement – and inequities in retirement savings persist across income, race, and gender.^{2, 3}

Studies show that workplace retirement participation rates tend to increase as annual earnings go up, underscoring the critical role of employers in helping workers build their retirement savings and financial health.^{4, 5} In this report, we explore what’s driving retirement insecurity across America and share innovative solutions employers can leverage to support the retirement needs of their workers.

What You’ll Learn

Read the full report to explore strategies for designing effective retirement plans that support workers’ retirement security, financial health and improve workforce equity and resilience.

See the challenges that impact Americans’ ability to save for retirement, including limited access to employer-sponsored retirement savings plans

Discover how innovative plan design can help more workers build retirement savings and mitigate against workforce inequities

Learn from other employers who have successfully implemented these strategies

Solution Spotlight: Out-of-Plan Emergency Savings Accounts

Offering an emergency savings solution can be an effective mechanism for improving workers’ retirement plan readiness. One option for employers is to offer an out-of-plan Emergency Savings Account (ESA), an after-tax savings account that is not linked to employees’ workplace retirement plans. Employees can contribute a part of their wages into an ESA, and employers can match employees’ contributions.

Our Supporter

Dayforce commissioned this report to identify key trends relating to the state of retirement security for a workplace audience. The insights and opinions expressed in this report are those of the Financial Health Network and do not necessarily represent the views or opinions of our partners, funders, and supporters.

The Financial Health Network conducts impartial research on the financial services landscape and does not endorse any specific products or services.

Endnotes

Dan Doonan & Kelly Kenneally, “Retirement Insecurity 2024: Americans’ Views of Retirement,” National Institute on Retirement Security, February 2024.
John Sabelhaus, “The Current State of U.S. Workplace Retirement Plan Coverage,” Wharton Pension Research Council Working Paper No. 2022-07, March 2022.
“Employment-Based Retirement Plan Access & Participation: By the Numbers (2022),“ Employee Benefit Research Institute.
Ibid.
Eric Toder & Karen E. Smith, ”Do Low-Income Workers Benefit from 401(k) Plans?,” The Urban Institute, Program on Retirement Policy Discussion Paper Series, September 2011.