10 Alarming Retirement Statistics You Can’t Ignore

For certain folks, there’s something they find more frightening than snakes, spiders and even (gulp) public speaking. Nope—we’re not talking about a trip to the DMV. We’re talking about retirement.

In fact, a recent survey found that 61% of working Americans are more scared of retirement than death.⁶ But listen, you shouldn’t be afraid of your golden years. They’re supposed to be “golden” for a reason!

We’re not showing you these alarming statistics to scare you—we just want you to be aware of what happens if you don’t take control of your finances.

Hopefully, these numbers will get you fired up and wired up to start preparing for the future. Because if you don’t, you might wake up someday with a lot of gray hairs but no money in your nest egg, wishing you had started saving a whole lot sooner.

37% of Americans have more credit card debt than retirement savings.

According to Ramsey’s State of Personal Finance report, more than a third of Americans (37%) have more credit card debt than retirement savings. That’s over 90 million U.S. adults. That’s crazy! And we’re not even including other kinds of debt like student loans or auto loans in this equation.

If you’re in that 37%, you’re setting yourself up for a boatload of trouble down the line, especially in retirement.

Social Security payments are around $23,150 a year.

Thinking about relying on Social Security for retirement? Think again. In January 2025, most retired people got an average of $1,929 per month from Social Security.⁷ That’s only around $23,150 a year.

Do you think that’ll be enough for your retirement? We don’t either. In fact, even the Social Security Administration has said Social Security isn’t meant to replace all of your income.⁸

Only 62% of Americans own stocks.

Only 62% of Americans said they own stocks, which means 38% haven’t invested in the stock market at all. Yikes! But here’s some good news—that’s a nice jump from 52% almost a decade ago.⁹

So, while we’re headed in the right direction, we still have a lot of work to do. If you’re part of the 38%, it’s time to get started on your investing game! (That is, if you’re financially ready to invest.) If you’ve heard us say it once, you’ve heard us say it a thousand times: You need to build wealth!

38% of people in debt are either struggling or in crisis with their money.

According to research done by Ramsey Solutions, 38% of Americans who have debt say they’re either struggling financially or in crisis, compared to 22% of people without debt. One of the biggest problems with debt is that it takes away your most important wealth-building tool: your income.

How much will you need for retirement? Find out with this free tool!

You see, every dollar you send to some bank or lender each month is one less dollar you can use to save and invest for the future. It’s no surprise, then, that people in debt are more likely to feel overwhelmed, worried and stressed than those without debt.

That’s why you should pay off all debt (except your mortgage) with the debt snowball method before you even think about investing for retirement. The faster you get out of debt and free up hundreds (or even thousands) of dollars of your income, the more you’ll be able to invest and build wealth in the future.

77% of American workers are living paycheck to paycheck.

There’s no getting around the fact that every day is terrifying when you’re living paycheck to paycheck. And more than three-fourths of Americans are doing just that.¹⁰ In fact, almost half of households making more than $100,000 and over a third earning more than $200,000 are still living paycheck to paycheck.¹¹

How can you possibly build wealth and retire with a nice nest egg if your bank account keeps hitting zero? Look, if this is you—put investing on hold . . . for now.

Right now, it's time to walk the Baby Steps. Start with putting away $1,000 for emergencies and paying off all debt except your home—with lots of intensity. You can do this!

22.4 million Americans can’t afford their rent.

Recent research from Harvard shows that half of all American renters are struggling to pay their rent. In fact, an all-time record of 22.4 million renters are spending more than 30% of their income on rent and utilities.¹²

If you’re having trouble fitting rent into your budget, it’s time to:

• Pause any investing
• Cut back on spending
• Increase your income
• Possibly find cheaper living arrangements

Shelter—which includes rent—is one of the four basic expenses (the others are food, utilities and transportation) you need to cover before you worry about anything else.

That means you need to secure the roof above your head before you even start the Baby Steps—let alone invest for retirement. Do what you need to do to fix the problem so you can get back on track. You’ve got this!

Americans have over $1.2 trillion in credit card debt.

This should really get your attention: A study done by Ramsey Solutions found that 1 in 3 Americans say they’re relying on their credit cards more than normal, and 1 in 4 had maxed out a credit card in the last 90 days.

In fact, as of the end of 2024, the United States has crossed $1.2 trillion in credit card debt.¹³ And that’s only credit card debt. Can you feel our blood pressure rising?

You might be thinking to yourself, So what? I’ll just invest for retirement and pay down my debt. No biggie, right? Well, now you’re looking for trouble.

Debt is stealing from you. Trying to save for retirement with debt is like running a marathon with a backpack full of bricks—you’re not going to make it to the finish line. As long as you have these blood-sucking credit card companies draining your income every month, you’ll always feel behind.

Only 34% of non-retired people feel on track with their retirement savings.

Even though retirement is a top goal in America, 66% of folks feel behind on their retirement savings—a scary feeling.¹⁴ But (spoiler for the next stat) almost half of American workers haven't even figured out how much they need to save for retirement.

48% of workers haven’t calculated what they need to live in retirement.

Any big achievement—like funding your retirement—takes work. But almost half of Americans haven’t taken the time to figure out how much they’ll need to save up for their golden years.¹⁵ 

If you’re in that group, don’t panic. In just a few minutes, our free retirement assessment tool can help you calculate how much you’ll need in your nest egg to enjoy the kind of retirement you’ve always dreamed of—and what you’ll need to invest each month to get there.

Only 27% of Americans use a financial advisor.

That means a disappointing 73% of Americans have no one they trust for professional financial advice.¹⁶ Trying to save for retirement without a pro on your side is like wandering into a dangerous jungle without a guide. You’re going to get lost . . . or worse.

There’s a reason why 68% of millionaires said they worked with a financial advisor to help them reach their net worth. Millionaires recognize that they don’t have all the answers. And they’re not afraid to seek out the wisdom of someone who can help them get where they want to go. Do yourself a solid and get connected with an investment pro.

Retirement Statistics to Give You Hope

Wow—after all those dark and dreary numbers, we bet you could use some positive news about retirement. Kind of like watching your favorite comedy after a scary movie so you don’t have nightmares. Well, here’s some good news from Ramsey’s National Study of Millionaires: 

• 8 out of 10 millionaires invested in their company’s 401(k) to help them reach their net worth. You don’t have to hit the lottery, make risky single-stock investments, or inherit a fortune to retire a millionaire.

• 3 out of 4 millionaires said regular, consistent investing was the key to their success. And guess what: 79% didn’t receive an inheritance from their parents or other family members to get there.

• The top five careers of millionaires? Engineers, accountants, teachers, managers and attorneys. In fact, only 15% of millionaires held senior leadership roles (CEO, CFO, COO, etc.). No matter what your career is, you can build wealth and reach a seven-figure net worth over time.  

• 93% of millionaires said they got their wealth because they worked hard, not because they had big salaries. Anyone can and should be able to retire comfortably in America today.

You see? The American Dream is alive and well and available. It’s never too late to change your financial picture.

Your retirement years don’t have to be a troubling, frightening experience. It’s time to get rid of the fear. It’s time to take charge of your finances and make better decisions going forward.

 

This article provides general guidelines about investing topics. Your situation may be unique. To discuss a plan for your situation, connect with a SmartVestor Pro. Ramsey Solutions is a paid, non-client promoter of participating Pros.