The Retirement Savings Crisis Is Getting Worse: What HR Can Do Now

Nearly four in 10 American workers aren’t confident their retirement savings will carry them through the years ahead. And for many, the backup plan is to just keep working – as if that’s a guaranteed option.  

That finding comes from the 2026 Retirement Confidence Survey, now in its 36th year, conducted by the Employee Benefit Research Institute (EBRI) and Greenwald Research. The survey of more than 2,500 Americans found that worker confidence in having enough money for a comfortable retirement is now 61%, down from 67% last year.

The survey was conducted in January 2026, seeking insight from 1,007 workers and 1,045 retirees about their retirement savings. The findings paint a concerning picture.

What’s Driving the Drop in Confidence on Retirement Savings

Thirty-two percent of survey respondents rated their household financial well-being as fair or poor – the largest single share of any rating category. Specifically, nearly 60% of workers say healthcare costs are hurting their ability to save for retirement. Seven in 10 are worried that rising housing costs will affect their retirement savings.

And debt is a significant factor – 65% of workers say it’s a problem, with one in four calling it a major problem.

The debt finding stands out. Nearly one in three workers carries more than $25,000 in non-mortgage debt. And it’s affecting retirement savings directly – nearly three in five workers say debt is negatively impacting their ability to save for retirement. For a significant share of the workforce, retirement savings isn’t the first financial problem on their mind.

The uncertainty doesn’t stop there: Four in five workers are concerned the government will make changes to the U.S. retirement system, and only about half are confident Social Security and Medicare will continue to provide benefits of equal value. That’s making it harder for workers to make a realistic retirement savings plan – or feel good about whatever they’ve managed to save so far.

“Retirement confidence has clearly softened this year, and the data show why,” said Craig Copeland, director of wealth benefits research at EBRI. “Americans are contending with a mix of immediate financial pressures and long-term uncertainty. Many workers are struggling with debt, inflation, and rising housing and healthcare costs.”

The Retirement Age Reality Check

The survey’s sharpest finding involves what workers expect versus what retirees live.

Workers’ median expected retirement age is 65. But retirees’ actual median was 62, and most retired before 65. Nearly half retired earlier than planned, most often due to a health problem, disability or changes at their company.

The “I’ll just work longer” assumption is even shakier. A growing share of workers say they don’t plan to retire at all. But the data tells a different story – most retirees didn’t choose their retirement date. Health and circumstance chose it for them.

This creates a structural risk for benefits design that assumes employees control retirement timing. HR’s best move to help employees? Push past the standard benefits conversation and have more realistic discussions with employees about the realities of retirement planning.

Retirement Income Sources: Expectations vs. Reality

The disconnect between expectations and reality doesn’t stop at retirement age. When it comes to retirement income, workers’ expectations and the lived experience of retirees don’t match up.

More than eight in 10 workers expect to rely on a workplace retirement savings plan. But only 45% of retirees report relying on one. Workers expect to continue working for pay in retirement at nearly three times the rate that retirees actually did – 75% vs. 27%.

When it comes to personal retirement savings vehicles, 71% of workers expect a traditional IRA to be part of their retirement income – only 54% of retirees report that it is. And while 60% of workers are counting on a Roth IRA, just 34% of retirees said they relied on one.

Workers and retirees represent different generations with varying plan access and economic realities. Even so, the pattern is consistent: Workers are counting on income sources that retirees weren’t using at anywhere near the same rate.

What HR Can Do Now

For many employees, the retirement plan is a major part of the benefits package. More than half cite retirement benefits as an important reason to stay with their current employer – and that’s a meaningful retention factor the data backs up.

HR’s Compliance Toolkit: Stay Ahead of Changing Federal and State Regulations

Workers say they need guidance. More than two in five don’t know where to turn for financial or retirement planning advice. That’s a real opportunity for HR and benefits teams to step in, connect employees to resources and make sure they understand what’s available. To help employees meet their retirement savings goals:

• Connect debt management to retirement savings. If your financial wellness programs only talk about deferral rates and target‑date funds while ignoring high‑interest debt, you’re missing the primary barrier many employees face when trying to save for retirement. Integrating debt‑management tools, counseling or educational modules into existing financial wellness offerings creates a more realistic path for employees to pay down debt and increase retirement contributions.
• Show younger employees the real cost of delaying retirement savings. Workers in their 20s and 30s have the most powerful retirement savings tool at their disposal: compounding. But if no one translates that into concrete examples – like how waiting just five to 10 years can halve their projected retirement balance – many will continue to put off saving. Encourage retirement contributions by nudging automatic enrollment during onboardings, encouraging automatic payroll-increase contributions that lock in savings before lifestyle inflation sets in and sharing side-by-side scenarios of projected balances.
• Help employees plan retirement savings around a date they may not control. Many workers assume they’ll choose when to retire, even though health issues, disability and job changes force earlier-than-planned exits from the workforce. Framing retirement planning as contingency planning – not just a distant milestone – helps employees make more informed decisions earlier.

Retirement confidence is declining, but HR is positioned to respond with concrete, immediate actions to help employees boost their retirement savings. Teams that treat this as both a people issue and an operational priority move workers closer to retirement security.

Go Deeper on Retirement Benefits Strategy

Watch our free on-demand webinar, Insights from the Retirement Readiness Report: Benefits Strategies for This Year, to hear how forward-thinking HR teams are reimagining retirement benefits – and what the data says about what employees actually need. Watch it now.