Four in 10 Older Americans Lack Retirement Accounts

A significant portion of American workers approaching retirement age lack essential retirement accounts, potentially jeopardizing their financial stability after leaving the workforce. Nearly half of working-age Americans in the private sector do not have any retirement savings plan in place, as revealed by an April analysis of AARP data conducted by Torsten Slok, chief economist at Apollo Global Management. This widespread lack of preparation extends across multiple age demographics, indicating a systemic issue in retirement savings.

The data highlights that younger generations are the most affected, with approximately 57% of Gen Z and young millennials, aged 18 to 34, having no retirement plan. However, the problem is also prevalent among older workers who are nearing the end of their careers. A substantial 41% of Americans aged 34 to 44 employed by private companies are without a retirement plan. This figure rises to 40% for those aged 45 to 54, and critically, 40% of U.S. workers between the ages of 55 and 65 also do not have a retirement account. This means that approximately four in 10 individuals in Generation X, and even some Baby Boomers, are not actively saving for their post-work lives.

The implications of this widespread lack of retirement savings are considerable. As these older workers approach their target retirement ages, the absence of accumulated funds could lead to significantly reduced living standards and prolonged working lives. The financial strain is exacerbated by the fact that a majority of Americans report living paycheck-to-paycheck, with rising costs for housing, childcare, and groceries consuming a large portion of their income, making it difficult to allocate funds towards long-term savings goals. This financial pressure has led some individuals to tap into existing retirement funds prematurely.

Further compounding the issue, a 2025 report from Payroll Integrations indicates that 38% of professionals across all generations have already withdrawn money from their retirement accounts. Among younger adults, Gen Z workers are the most likely to have accessed these funds, with nearly half having dipped into their retirement savings. This trend suggests a growing reliance on retirement funds for immediate financial needs, further undermining long-term financial security for a substantial segment of the American workforce.