Middle-class Americans are falling short on retirement, new report finds

Middle-class Americans are increasingly struggling to build retirement security, with inflation, mounting debt, and the shifting burden of caregiving conspiring to undermine the financial futures of tens of millions of households.

That’s according to a report by the Transamerica Center for Retirement Studies (TCRS) in collaboration with Transamerica Institute that draws on a survey of more than 7,600 U.S. residents and examines Americans with household incomes between $50,000 and $200,000.

The report, The American Middle Class: Influences of Gender on Retirement Security reveals a group that remains broadly optimistic about daily life, but is quietly stretched thin by financial demands that leave little room to save for the future.

"The middle class embodies the American dream," said Catherine Collinson, CEO and president of Transamerica Institute and TCRS. "Amid today's rapid pace of change, inflation, and uncertainties about the future, how are they contending with mounting financial pressures?"

Debt and inflation are taking a toll

The cost of living is the dominant financial obstacle for this demographic.

Eight in 10 middle-class workers who have not yet retired (80%) agreed that today's high cost of living is making it harder to save for retirement. Fifty-seven percent said debt is directly interfering with their ability to put money aside, and 55% reported they simply don't earn enough to contribute meaningfully to a retirement account.

Seven in 10 respondents (72%) said they had taken at least one action in response to inflation in recent years such as cutting back on day-to-day spending (40%), drawing down savings accounts (34%), or accumulating new credit card debt (23%).

As of late 2025, the median middle-class household had saved $64,000 in retirement accounts; a figure that falls well short of what most financial planners consider adequate for a secure retirement. Paying off debt ranked as the top current financial priority (58%), edging out saving for retirement (50%) and building emergency funds (42%).

A widening gender divide

The TCRS report places particular emphasis on gender disparities, and the findings reveal a consistent gap in both outcomes and lived experience.

Women have saved a median of $49,000 in retirement accounts, compared with $82,000 for men. Women are also more likely to prioritize basic survival over long-term planning: 35% of women said their top financial goal is simply getting by to cover living expenses, versus 27% of men.

Those differences compound over time. Research has long documented the gender gap in retirement savings driven by wage disparities, career interruptions for caregiving, and longer life expectancy.

This new data suggests those structural headwinds remain entrenched. Women are more likely to expect Social Security to serve as their primary retirement income source (31% vs. 25% for men), while men are more likely to rely on 401(k)s, 403(b)s, or IRAs (34% vs. 29%).

While majorities of both genders reported positive feelings about life, women were significantly more likely to show signs of burnout: 49% of women said they often feel exhausted and burned out, compared with 40% of men.

Working longer is the plan but may not be the reality

One in three middle-class workers who haven't yet retired (33%) said they expect to work until age 70 or older, or don't plan to retire at all.

Women are slightly more likely than men to fall into this category (36% vs. 30%). The report found that nearly half of retirees (48%) left the workforce sooner than they had planned, often due to health issues, family demands, or job loss rather than financial readiness.

Women who retired early were more likely to have done so for family-related reasons (30% vs. 17% of men), while men were more likely to cite employment factors (62% vs. 44%). Just 17% of men and 11% of women said they retired ahead of schedule because they had saved enough.

Artificial intelligence adds another layer of uncertainty. Among workers who have not yet retired, 45% said they are worried that AI and robotics are making their job skills obsolete, a concern that is slightly more acute among women (48% vs. 41% of men).

The rise of AI is reshaping retirement expectations for a generation of workers counting on extended careers to bridge savings gaps.

Caregiving: a hidden retirement risk

More than one in three middle-class workers (36%) said they are currently serving or have previously served as a caregiver for a family member or friend, a responsibility that often curtails earning potential and retirement contributions.

An equal share of retirees (36%) said they have devoted significant time to caregiving since leaving the workforce.

The implications extend to retirement planning. More than half of retirees (53%) said they expect to rely on family and friends if their health declines and they need assistance with daily activities or nursing care.

This raises questions about the adequacy of informal care networks and the financial exposure of family members, particularly spouses. Men are more likely than women to expect their spouse to serve as primary caregiver (43% vs. 32%).

"The middle class must be able to afford everyday life, have income to save, and have meaningful employment," Collinson said. "They also need support from policymakers and employers to address gender disparities, to recognize the vital role of caregivers, and to ensure the sustainability of Social Security and Medicare. It's time to future-proof our retirement system."

Seventy-four percent of middle-class workers who haven't retired said they are concerned Social Security will not be available to them when they are ready to claim it.