Retirement is a milestone that brings both excitement and uncertainty. As we navigate the complexities of today’s economy, understanding the landscape of retirement readiness empowers us to act with confidence and purpose.

In this comprehensive guide, we draw on the latest 2025 data to illuminate trends, disparities, and strategies that will inspire you to take control of your financial future.

Current State of Retirement Savings

In recent years, retirement savings have declined to a median saver rate of 10% in 2025, down from 12% in 2022. Yet, overall assets in all retirement accounts soared to $37.8 trillion in 2022, underscoring the sheer scale of invested capital nationwide.

Despite robust growth, average balances reveal stark differences across age groups and regions. Understanding these numbers can guide realistic goal-setting and highlight where adjustments are needed.

The typical retirement nest egg reported by Empower reached $491,022, reflecting the potential for disciplined investing. Yet, half of all households still lack any dedicated retirement savings.

Savings Behaviors and Trends

Employer-sponsored plans remain the backbone of retirement funding, with roughly $500 billion deposited annually and increasingly generous matches. Access to a defined contribution plan doubles the likelihood of reaching savings targets.

However, significant gaps persist:

• 54% of households have no retirement account.
• 32% of working-age adults hold zero retirement savings.
• The median American begins saving at age 31.

Auto-enrollment and target-date funds have proven to boost confidence and savings rates among participants. Encouragingly, the average 401(k) contribution rate climbed to 14.3% in early 2025—the highest on record.

Psychological Confidence and Market Volatility

Financial confidence is fragile. In 2025, 64% of savers feel on track, yet only 38% of employers agree. Market swings and inflation fears erode optimism, and just 27% of retirees report feeling financially prepared, down sharply from 43% five years earlier.

Nearly two-thirds worry about running out of money in retirement, driving demand for guaranteed-income products. In fact, 86% of savers express interest in solutions that promise lifetime payouts.

Confidence gaps are pronounced along gender and income lines. High-income households ($100k+) report 83% plan participation, compared with just 39% among 18–29-year-olds. White adults are significantly more likely to hold accounts (68%) than people of color (42%).

Timing and Continued Work

Turning 65 remains a symbolic threshold: 4.2 million Americans will reach that age in 2025. Yet retirement timing is shifting, with one-third expecting to retire later than planned and 30% opting for a phased exit from the workforce.

Continued work often supplements savings and bolsters confidence. Nearly half of adults aged 60–75 plan to work part-time during retirement, while 1 in 12 expect never to fully retire.

• Under 55: 13% retire
• 55–59: 20%
• 60–61: 9%
• 62–64: 9%
• 65: 13%
• 66–69: 13%
• 70 or older / never retire: 6%

Geographic and Demographic Disparities

Location and demographics dramatically shape outcomes. States like Hawaii ($228,870), Massachusetts ($218,189) and New Jersey lead in average savings, while lower-cost but less affluent regions lag behind.

Baby boomers in the lowest income brackets face the bleakest outlook—only 15% are projected to be ready. Conversely, nearly half of Gen Zers may achieve readiness, largely thanks to better access to DC plans.

Expanded financial education and plan features are critical to closing these gaps. Early and continuous guidance can shift the tide toward broader preparedness.

Actionable Planning Strategies

Practical steps can transform uncertainty into progress. Consider the following methods to strengthen your retirement readiness:

• Maximize employer matching contributions before allocating to other goals.
• Adopt auto-escalation to increase savings rate gradually over time.
• Diversify investments across equities, bonds, and alternative assets.
• Incorporate guaranteed-income options to stabilize future cash flow.

Regularly reassess your plan to account for life changes, market movements, and revised goals. Early and consistent saving efforts compound into meaningful balances over decades.

Policy and Product Innovations

Systemic solutions are gaining traction. Universal access to DC plans could elevate readiness for millions more. Policymakers and employers are exploring auto-enrollment mandates and enhanced match formulas to spur participation.

Meanwhile, the rise of target-date funds, annuity-like features, and active management of alternative assets offers tailored pathways to bridge the retirement savings gap. These innovations address both the accumulation and distribution phases of retirement planning.

Conclusion: Taking Charge of Your Retirement Journey

Your retirement future is not predetermined. By understanding the data, leveraging proven strategies, and advocating for inclusive policy changes, you can shape a secure and fulfilling second act.

Retirement readiness is a journey, not a destination. Start today, stay informed, and adjust your course as needed. The golden years you envision are within reach when you plan with intention and confidence.