The typical U.S. worker has just $955 saved for retirement, according to a new report from the National Institute on Retirement Security, highlighting the financial strain millions of Americans may face as they age. The median figure includes workers with 401(k)s and other retirement plans, as well as roughly 56 million workers who lack access to any employer-sponsored retirement savings option.

Using data from the U.S. Census Bureau’s Survey of Income and Program Participation, the nonpartisan think tank found that median retirement savings for employed adults ages 21 to 64 stand at $955. For workers who do have retirement accounts, the median balance rises to $40,000, still far below the approximately $1.5 million Americans say they need to retire comfortably.

The report notes that while some progress has been made in expanding retirement savings options, large gaps remain. Millions of workers remain outside the system entirely, largely because they do not have access to retirement plans through their employers. According to the report, workers without employer-sponsored plans are unlikely to save for retirement at all.

The findings come as Social Security faces its own financial challenges. Without congressional action, the program’s trust fund shortfall could trigger an estimated 20 percent cut in benefits beginning in 2034, placing additional pressure on retirees who already have limited savings.

Financial strain is already pushing more older Americans back into the workforce. A recent AARP survey found that 7 percent of retirees returned to work in the past six months, with nearly half citing financial pressures as the primary reason. AARP officials say the trend of seniors working longer is likely to continue as inflation and cost-of-living concerns persist.

The data also helps explain rising poverty among older Americans. Census figures show that 15 percent of seniors lived in poverty in 2024, up from 14 percent the previous year, marking the highest poverty rate of any age group.

Savings shortfalls are evident across age groups. According to Fidelity benchmarks, workers should have one year of income saved by age 30, double that by age 35, and roughly eight times their annual income by age 60. However, workers ages 55 to 64 have accumulated only 19 percent of their targeted retirement savings in 401(k)s or similar plans, the report found.

Despite its challenges, Social Security remains a critical safety net. Many Americans misunderstand the program’s role, with a 2025 Allianz survey finding that one in five believe Social Security will fully cover their retirement income, even though it typically replaces only about half.

The report warns that without reforms, including addressing Social Security’s funding gap, millions of seniors could face significantly reduced financial stability in retirement.