Only 56% of American workers participate in their workplace retirement plan, according to the Pension Rights Center. Meanwhile, our recent 2024 Global financial wellbeing research reveals 86% of U.S. employees list saving for retirement as a financial goal. People want to save for retirement, but they’re also struggling with a variety of short-term financial challenges. So, what are some reasons people are not saving long-term for retirement?
Depending on the study, 61% to 78% of Americans are living paycheck to paycheck. Some of these individuals are still saving in their retirement accounts, but many are not. Inflation, student loans, credit card balances at all-time highs, childcare costs, medical bills and many other immediate financial forces are blocking workers’ ability to save for retirement.
