Inflation, Competing Priorities, and Uncertainty Erode Retirement Security

Americans across generations face significant retirement insecurity and low median savings.

What the company is saying

Transamerica Center for Retirement Studies, led by CEO and president Catherine Collinson, presents a data-driven narrative emphasizing the growing burden on individuals to fund their own retirement amid inflation, Social Security uncertainty, and employment disruptions. The report, 'Stressed and Strained: Four Generations Strive for Retirement Security,' highlights that 78% of workers struggle to save due to the high cost of living, and 73% doubt Social Security's future availability. Collinson frames the situation as a 'perfect storm,' underscoring the need for shared responsibility among policymakers, employers, and individuals. The announcement stresses generational differences, with each cohort facing unique challenges, but consistently points to inadequate savings and widespread financial anxiety. The tone is sober, factual, and avoids promotional language, instead focusing on the scale of the problem and the urgency of policy and personal action.

What the data suggests

The survey of 6,153 U.S. workers reveals that median retirement savings are $37,000 for Generation Z, $73,000 for Millennials, $113,000 for Generation X, and $263,000 for Baby Boomers. Despite these figures, 65% of all workers believe they could work until retirement and still not save enough, and 41% fear outliving their savings. High cost of living is cited by 78% as a major barrier to saving, while 73% worry Social Security will not be there for them. Debt is a major obstacle, with 58% of Millennials reporting it interferes with retirement savings. Early or hardship withdrawals from retirement accounts are common, affecting 22% of Gen Z, 20% of Millennials, 17% of Gen X, and 11% of Boomers. Caregiving responsibilities have forced 90% of Gen Z and Millennial caregivers to adjust their work situations. Only 18% of Gen X are very confident in retiring comfortably, and just 28% of Boomers have a written retirement strategy. The data is robust, with a ±1.8 percentage point margin of error at a 95% confidence level, but reflects a single time period with no trend data.

Analysis

The announcement is a research report release summarizing survey findings on retirement preparedness across four generations of American workers. The tone is factual and supported by detailed numerical data, including median retirement savings by generation and percentages reflecting attitudes and behaviors. The only forward-looking statements are general observations about the importance of income, savings, and the future of Social Security and Medicare, which are not presented as company initiatives or projections. There are no exaggerated claims, promotional language, or unsubstantiated projections. No capital outlay or investment program is discussed, and there is no implication of immediate or long-term financial benefit to the company. The data is robust, with a large sample size and disclosed methodology, and all key claims are directly supported by the disclosed figures.

Risk flags

• ●Widespread retirement insecurity is evident, with low median savings across all generations and a majority of workers lacking confidence in their ability to retire comfortably. This systemic risk could lead to increased financial strain on public safety nets and the broader economy.
• ●High reliance on Social Security is risky, as 73% of workers express concern about its future solvency, and 42% of Baby Boomers expect it to be their primary retirement income. Any reduction in benefits or eligibility could have severe consequences for retirees.
• ●Frequent early or hardship withdrawals from retirement accounts, reported by up to 22% of Gen Z and 20% of Millennials, undermine long-term compounding and suggest that many workers are using retirement savings as emergency funds, increasing the risk of inadequate resources in old age.

Bottom line

This report signals deep and persistent retirement insecurity for American workers, with median savings far below what is likely needed for financial independence in old age. The findings are credible, with a large, well-constructed sample and transparent methodology, but they paint a bleak picture: most workers do not feel on track, and many are forced to tap retirement savings early. The heavy dependence on Social Security, which faces its own funding challenges, amplifies the risk. For investors, this suggests continued demand for retirement planning products and services, but also highlights potential macroeconomic headwinds if large segments of the population cannot afford to retire. The most important takeaway is the urgent need for both policy and individual action to address the growing retirement savings gap.

Announcement summary

(NASDAQ:RTHY) Transamerica Center for Retirement Studies (TCRS), in collaboration with Transamerica Institute, released 'Stressed and Strained: Four Generations Strive for Retirement Security,' a report examining the retirement outlook for Generation Z, Millennials, Generation X, and Baby Boomers. The report is based on a survey of 6,153 workers conducted online in the U.S. by The Harris Poll from September 16 to October 17, 2025. Most American workers (78%) agree that today's high cost of living is making it harder to save for retirement. Sixty-five percent of workers believe they could work until retirement and still not save enough to meet their needs. Seventy-three percent are concerned that Social Security will not be available when they retire. Forty-one percent cite outliving their savings and investments as a major retirement fear. Among Generation Z workers aged 18 and older, 50% are struggling to make ends meet, 28% have more than one job, and 52% have a side hustle. Generation Z workers have $37,000 saved in their total household retirement accounts (estimated median), and 22% have taken a hardship or early withdrawal from retirement savings. For Millennials, 58% say debt interferes with their ability to save for retirement, and 44% prefer not to think about retirement investing until closer to retirement. Millennial workers have $73,000 saved in retirement accounts (estimated median), and 20% have taken a hardship or early withdrawal. Generation X workers have $113,000 saved in retirement accounts (estimated median), with 17% having taken a hardship or early withdrawal. Only 18% of Generation X workers are 'very confident' they will be able to fully retire with a comfortable lifestyle, and 25% strongly agree they are building a large enough nest egg. Thirty-six percent of Generation X expect to retire at age 70 or older or not retire, and 53% plan to continue working in retirement. Baby Boomer workers have $263,000 saved in retirement accounts (estimated median), and 11% have taken a hardship or early withdrawal. Fifty-five percent of Baby Boomers expect to retire at age 70 or older or not retire, and 42% expect Social Security to be their primary source of retirement income. The report highlights that 34% of Generation Z, 37% of Millennials, and 28% of Baby Boomers have served as caregivers, with 90% of Generation Z and Millennial caregivers making work adjustments due to caregiving. The survey data is weighted to reflect population proportions and is accurate to within ±1.8 percentage points at a 95% confidence level. The report provides recommendations for workers, employers, and policymakers to strengthen retirement security.

Disagree with this article?