Savings and investments: This category has the biggest influence on retirement readiness, with a maximum of 35 points available. Yet, respondents only realized 15.1 points, reaching just 43.2% of the potential in this crucial area.

What this means: Many are not saving enough or don’t know if their savings will last through retirement. Key gaps included low confidence in current savings, lack of a written retirement plan, and few respondents meeting regularly with financial advisors for retirement advice.

Lifestyle and spending: Out of 15 possible points, respondents only realized 6.97 points in this area. That’s just 46.5% of the potential, signaling that Americans are underprepared to manage day-to-day expenses in retirement.

What this means: Many Americans have not fully transitioned from an earning mindset to a spending and sustaining mindset for retirement or created a detailed retirement budget that accounts for inflation, health care, or changes in income sources. Key gaps were noted in a heavy dependence on non-guaranteed income sources, and concern that working during retirement will be necessary, not optional. Survey responses also suggest that pre-retirees are adjusting their definition of retirement. For many, they’re anticipating a retirement that includes part-time work, consulting, or phased retirement.

Where Americans show strength

Economic and policy confidence: Americans achieved 10.2 out of 20 possible points in this area, making it the highest among all categories, though still well below ideal.

What this means: There’s moderate confidence in navigating future economic and policy changes, but inflation remains a major concern. Notable insights included that half of the respondents expect Social Security to remain intact, many are using tax-advantaged retirement savings tools, but not fully, and widespread concern that inflation will erode retirement savings.

Emotional well-being: Americans achieved 7.25 out of 15 points here, showing moderate preparedness for the emotional side of retirement.

What this means: While many respondents have strong social networks and plans for engaging in activities, others haven’t communicated their retirement plans with family, which can create stress down the line. Notable insights include positive scores in social support and hobbies and lower scores in family communication and transition planning.

“Retirement readiness is not just a personal issue, it’s a societal one,” said Peter de Silva. “When individuals are unprepared for retirement, the ripple effects are felt across families, workplaces, communities, and the broader economy. The IRRI was … designed to spark a national conversation, shine a light on the areas where Americans are falling short, and provide a roadmap to take action. With individuals facing longer lifespans, rising health care costs, and economic uncertainty, the IRRI will remind policymakers, employers, and financial institutions to work towards better solutions.”

Related: Gen X turns 60: Are these employees ready for retirement?

“The good news is that retirement readiness isn’t out of reach, but it does require action,” added Pete Littlejohn, President of IRALOGIX. “Americans can start by getting informed, setting clear goals, and using the tools available to them, from workplace retirement plans to personal savings and trusted financial advice. Preparation is power, and every step taken today helps build the confidence and security needed for tomorrow.”

“Creating a culture of saving and retirement readiness starts at the top,” adds de Silva. “Employers have a real chance to help employees build better financial habits, but it takes more than just offering a retirement plan. It starts with education. Financial wellness programs tailored to different life stages can help employees make smarter decisions about budgeting, managing debt, investing, and planning for retirement.

Instant Insights /

Retirement Readiness Index: It’s a wake-up call, as ‘too few’ are prepared

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