Americans to Trump: Help Us Save for Retirement
With a Social Security shortfall looming and many workers struggling to save for retirement, most Americans agree: It's time for the government to step in.


Americans are deep in the throes of a retirement savings crisis. Federal Reserve data from 2022 (the last year for which it’s available) found that the median retirement savings balance among Americans aged 65 to 74 was just $200,000. And a 2024 AARP survey found that 20% of Americans ages 50 and over have no retirement savings whatsoever.
Last year, the National Institute on Retirement Security found that 79% of Americans agree there's a retirement savings crisis. Most Americans also agree that all workers should have a pension for guaranteed retirement income.
However, the Bureau of Labor Statistics estimates that only 15% of private industry workers have a pension through their employers. This places the burden of saving for retirement on individuals and leaves many devoid of the resources they need to invest accordingly.

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That doesn’t sit well with the public, according to a recent BlackRock survey. Not only do BlackRock’s findings point to a world of concern among Americans today, but also a lack of government accountability.
What's fueling the retirement savings crisis?
BlackRock surveyed 1,000 registered voters across the U.S. in mid-January about issues related to retirement and financial security. And an overwhelming majority (80%) said they feel that the Trump administration and Congress should prioritize legislation to help working Americans plan and save for a secure retirement.
Worse yet, only 18% of survey respondents are very confident they’ll have enough money to live on during their senior years. And 51% worry more about running out of money than dying.
These fears make even more sense when we dig into Americans’ retirement savings expectations versus their current reality. BlackRock’s respondents said they'll need roughly $2.1 million to retire securely. But 33% have no long-term savings so far, and 69% have socked away less than $150,000 for their senior years.
If Americans were more secure in their day-to-day finances, building their retirement nest eggs wouldn’t be so daunting. But 56% of BlackRock respondents worry about their personal finances at least once a day. And 33% say they would have a difficult time paying an unplanned $500 bill. Logic dictates that if coming up with $500 on the spot is a tough ask, then funding an IRA or 401(k) is pretty much out of the question.
Poor retirement finances literacy
Of course, part of the problem is that many Americans are sorely undereducated about long-term financial planning. As of 2020, roughly 35% of Americans had access to a retirement plan through their jobs, according to the U.S. Census, making employer-sponsored plans almost twice as prevalent as IRAs. But access to an employer plan doesn’t guarantee robust participation, nor does it guarantee that savers know where to put their money within their plan.
It’s common for employer-sponsored 401(k)s to default savers’ contributions to target-date funds. These funds adjust savers’ risk profiles based on how close to or far away from retirement they are. However, target-date funds often come with high fees and invest on the conservative side, leaving savers with less retirement wealth.
There are also inherent limitations with a 401(k) investment strategy, namely because these accounts commonly don’t allow savers to hold individual stocks. Low-cost index funds are a mainstay of 401(k)s, but not every saver knows to use them.
So all told, even when workers contribute to an employer plan, they don’t always get the maximum benefit due to a lack of knowledge, resources and investment choices. That’s why lawmakers can, and should, be doing more to help Americans save for their older age.
How can lawmakers avert the retirement savings crisis?
Effective this year, there's a change to 401(k) plans designed to boost savings among near-retirees — the super catch-up, a provision that allows workers aged 60 to 63 to replace the traditional $7,500 catch-up with a $11,250 contribution. But critics say that between the small incremental difference and the late-in-life opportunity, the super catch-up won’t move the needle all that much.
If lawmakers want to help working Americans save for retirement, they could consider eliminating catch-up contributions altogether and raising contribution limits for workers of all ages in 401(k)s and IRAs. Savers benefit from early-in-life contributions and the compounded returns that ensue. It makes little sense to limit larger contributions to older workers with shorter compounding windows.
Changing 401(k) and IRA contribution rules could also help address Social Security's pending shortfall. Once the program’s trust funds run dry, benefits might have to be cut by more than 20%. That underscores the importance of giving younger workers more leeway with their 401(k) and IRA contributions.
But there’s work to be done beyond increasing 401(k) and IRA contribution limits. Last year, global asset manager Janus Henderson found that almost half of Americans aren't investing their money. For 30%, the reason boils down to a lack of knowledge. Lawmakers could expand rules around 401(k) disclosures, fees and investment choices to give savers more insight and freedom to invest their money in a manner they're comfortable with.
Finally, lawmakers need to acknowledge that saving for retirement is a privilege many low — and even moderate-earners lack. Workers in this situation could benefit from boosted tax credits tied to retirement plan contributions. While some states employ auto IRAs to meet this need, they have low contribution limits and no employer match.
There are numerous options for a retirement savings fix, some more practical than others. Lawmakers must address the retirement crisis plaguing the nation, especially since Social Security cuts are looming.
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Maurie Backman is a freelance contributor to Kiplinger. She has over a decade of experience writing about financial topics, including retirement, investing, Social Security, and real estate. She has written for USA Today, U.S. News & World Report, and Bankrate. She studied creative writing and finance at Binghamton University and merged the two disciplines to help empower consumers to make smart financial planning decisions.
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