Every month, salaries are deposited, credit card bills must be paid, rent or mortgages need to be settled, and there are expenses for medical care, food, and other necessities. Everyone knows they should save for retirement, but after all these bills are paid, how much is left?
A recent retirement survey in the United States has revealed that debt is becoming a significant obstacle for many working individuals trying to save for retirement. 65% of employed individuals are struggling with debt, and about a quarter of them have severe debt issues. Nearly six in ten people admit that debt has impacted their ability to save for retirement.
The 2026 Retirement Confidence Survey was conducted by the Employee Benefit Research Institute (EBRI) and Greenwald Research. From January 2nd to January 28th of this year, researchers surveyed 2,052 Americans aged 25 and older, out of which 1,007 were still working, and 1,045 were retired.
The main findings of the report by EBRI pointed out that the financial situation of working individuals has worsened, with debt being a significant hindrance to savings.
The extent of debt stress can be seen from credit cards and other outstanding debts. The survey indicated that half of the employed individuals interviewed have credit card debt, and 39% of them carry other debts of $25,000 or more apart from mortgages.
Debt issues do not vanish even after retirement. 40% of retirees reported being troubled by debt, with about 30% indicating that debt has affected their ability to enjoy retirement comfortably.
For those still working, one of the problems brought by debt is that money that could have been saved for retirement gets diverted to fulfill repayment obligations. Approximately three-fifths of employed individuals stated that debt has affected their ability to save for retirement.
However, debt is not the sole factor affecting retirement savings. Nearly six in ten working individuals mentioned that medical costs have impacted their retirement savings, while three-fifths indicated that high housing costs have also had an effect. Additionally, 70% of people are concerned that rising housing costs in the future will also affect their retirement lifestyle.
Under various financial pressures, Americans’ confidence in their retirement life is declining. This year, 61% of working individuals believe they have enough money to comfortably retire, which is a 6% drop from 2025. Among retirees, this proportion decreased by 5%, reaching 73%.
Apart from current debts and living costs, there are other concerns regarding retirement savings: Do individuals have retirement accounts, and if they do, how to save and invest through them.
Teresa Ghilarducci, an economics professor at The New School for Social Research and a retirement security expert, pointed out in a previous interview with TheStreet that about half of American workers do not have employer-sponsored retirement plans. She has long emphasized that the US retirement security system excessively relies on retirement savings arrangements voluntarily entered into by employers and individuals, a problem that has persisted for many years.
Even when employers provide retirement plans like a 401(k), employees still need to decide on participation, contribution amounts, and investment strategies. After retirement, individuals also have to manage the retirement assets accumulated over the years and how to convert these assets into stable retirement income. Ghilarducci has previously illustrated the challenges faced in transforming a $1 million retirement asset into a lifelong income post-retirement.
Ghilarducci has advocated for expanding the coverage of retirement savings plans to enable workers without employer plans to accumulate retirement assets through automatic savings during their working years. Her proposed Guaranteed Retirement Account (GRA) aims to establish a more universal retirement savings system as an additional source of retirement income beyond Social Security.
She proposes that more American workers can automatically build retirement assets during their careers and together with Social Security, form a source of retirement income, rather than equating individual retirement accounts directly with Social Security accounts.