The majority of retirees live in a stark reality that’s a warning sign for those looking ahead to their golden years, a new study has found.
Some 53 percent of retired Americans say they regret not starting their retirement savings sooner – and 52 percent say they regret not saving enough, according to a survey of 1,591 adults published Wednesday by financial services research firm TIAA Institute.
The majority of those looking ahead to their golden years, but who haven’t stopped working, share a similar concern about building a retirement fund, the study found.
“Non-retirees’ top concern also centers on saving – specifically, ensuring they have enough in the bank to cover an unexpected expense or financial emergency before retiring,” TIAA Institute wrote.
The average American believes they need $1.2 million to cover their retirement. Yet just over half say they expect to have $500,000 or less, according to a separate analysis from wealth management firm Schroders.
Looking ahead to retirement income, younger people expressed a lack of faith in the nation’s Social Security system, the TIAA study found.
While 70 percent of all respondents said they anticipate using Social Security as retirement income, a little more than half of Gen Z consumers said they planned to use Social Security when they retire.
Recent projections about the longevity of Social Security payments may warrant Gen Z’s concerns.
A key funding source meant to make up the difference between what Social Security pays out and what it brings in from payroll taxes is projected to run out in 2032, according to a June report from the system’s board of trustees.
If that happens, payments could drop by as much as 22 percent, or as much as $459 per month, according to June payment data from the Social Security Administration.
Future retirees are balancing their Social Security skepticism with a strategy that includes relying on savings and working, TIAA found.
Some 46 percent of future retirees said they’ll rely on money saved outside of retirement accounts such as 401(k)s and IRAs compared with 31 percent of those already retired.
Around 1 in 4 respondents said they plan to use employment to help supplement their retirement income compared to 14 percent of current retirees.
Retirement employment is already seeping its way into the American workforce. A December 2025 study from the Census Bureau found that, over the past two decades, workers aged 55 or older were the fastest-growing age group in the job market.
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