1. Key findings

• Nearly half of Americans (45%) feel financially prepared for retirement or felt so prior to retiring. While 55% of Baby Boomers feel prepared, about one in three Gen Z adults (32%) feels prepared for retirement.

• While Social Security remains a major source of income for retirement, with 72% of Americans expecting to or already relying on it, more than half of Americans (55%) plan to or currently rely on personal savings and investments such as 401(k) plans and IRAs. 27% of Americans depend or plan to depend on passive income sources such as dividends and annuities.

• Nearly one in two Americans (45%) Americans plan to or have retired between ages 60 and 69 and only 13% anticipate retiring or retired beyond 70.

• Inflation is a key concern, with 78% of Americans worried about its impact on their retirement savings. 12% reported their biggest financial concern regarding retirement was rising medical costs.

• Investment preferences show a cautious approach, with 38% opting for a balanced, moderate-risk strategy and 19% favoring low-risk investments.

To enhance retirement security, individuals could prioritize early savings, diversify investments¹, and explore passive income opportunities. Employers and financial institutions can support this by expanding financial literacy programs, offering planning tools, and promoting employer-sponsored savings plans. Proactive planning is key to ensuring financial stability in retirement.

2. Half of Americans feel prepared for retirement

Nearly half of Americans (45%) say they feel (or felt, in the case of those already retired) financially prepared* for retirement. While 55% of Baby Boomers feel prepared, only about one in three Gen Z adults (32%) feels prepared for retirement (Figure 1).

According to Empower Personal Dashboard™ data as of March 2025, the average retirement balance for Baby Boomers was $1.5 million, compared to $942k for Gen X and $618k for all Americans, which includes employer-sponsored plans and individually controlled IRA savings and investing accounts. 

Figure 1: Nearly one in two Americans feel or felt prepared for retirement 
 

*Note: % saying "Very well prepared" and "Somewhat prepared"

Q. “How financially prepared, if at all, do you believe you are for retirement? If you are retired, please think about how financially prepared you believed you were for retirement.”

Source: Empower Retirement Readiness Snapshot, 2025.

3. Over half of Americans plan to rely or already rely on personal savings and investments during retirement 

Over one in two Americans (55%) rely or plan to rely on personal savings and investments (e.g., 401(k) and IRA) and over one in four (27%) on passive income from investments (e.g., dividends and annuities) during retirement (Figure 2).

While nearly three in four Americans (72%) rely or expect to rely on Social Security benefits for retirement income, only 58% of Millennials and 41% of Gen Z anticipate depending on it. 

Figure 2: More than half of Americans expect to rely or are relying on personal savings and investments for retirement income

Q. “Which of the following sources of income do you expect to rely on during retirement? If you are retired, please think about the sources of income you rely on for retirement. Please select all that apply.”
 

Source: Empower Retirement Readiness Snapshot, 2025.

4. Nearly one in two Americans plans to retire or retired in their 60s

Nearly half of Americans (45%) say they retired or plan to retire between the ages of 60 and 69 (Figure 3). While more than one in five Americans (22%) are uncertain, saying they don’t know at what age they will retire, over one in ten (13%) retired or expects to retire beyond 70. Interestingly, while 39% of Gen X plans to retire between ages 60-69, only 28% of Gen Z plans to do so. 

Figure 3: Over four in ten Americans plan to retire or have retired in their 60s

Q. “At what age do you plan to retire? If you are already retired, please select the age you retired below.”
 

Source: Empower Retirement Readiness Snapshot, 2025.

5. Many Americans are concerned about inflation affecting retirement savings

Inflation is a concern for Americans. Seventy-eight percent (78%) of Americans express concern* about inflation affecting their retirement savings (Figure 4). Little more than one in ten Americans (13%) say they are not concerned about inflation’s impact on their retirement savings. 

Figure 4: Nearly eight in ten Americans are concerned about inflation affecting retirement savings

*Note: % saying "Very concerned" and "Somewhat concerned"

Q. “How concerned, if at all, are you about inflation affecting your retirement savings?”
 

Source: Empower Retirement Readiness Snapshot, 2025.

6. Risk vs. reward: Americans are playing it safe with retirement investments

Nearly two in five Americans (38%) say they prefer a balanced, moderate-risk investment strategy, while 19% favor low-risk investments for stability. Only 7% are willing to adopt a high-risk strategy in pursuit of higher returns (Figure 5).

However, according to Empower’s Personal Dashboard data, as of February 2025, Americans’ asset allocation in their retirement investments consisted of 69% stocks, 22% bonds, and 9% cash, compared to 66% stocks, 24% bonds, and 10% cash in February 2024. 

Figure 5: About two in five Americans prefer a balanced approach for retirement investments

Q. “How would you describe your risk tolerance for retirement investments (e.g., 401 (k)s, Roth IRAs, etc.)?”
 

Source: Empower Retirement Readiness Snapshot, 2025.

7. Key considerations for planning for a more stable retirement

Individuals and institutions could consider taking proactive steps to enhance retirement readiness (Figure 6).

Figure 6: Strong financial planning and improved financial awareness can help Americans save for retirement

Source: Empower Retirement Readiness Snapshot, 2025.

1. Strengthen personal financial planning

   • Individuals could prioritize early retirement savings, diversify investments, and explore passive income opportunities to supplement Social Security.

   • Employers could offer financial planning resources and tools to help employees make informed decisions.

2. Enhance financial literacy and accessibility

   • Employers and financial institutions could expand financial education programs, offer retirement planning tools, and promote employer-sponsored savings plans to boost long-term financial security.

Proactive planning is essential to help avoid financial hardship in retirement. By prioritizing early preparation, adopting diversified investment strategies, and making informed financial decisions, individuals can build a more secure and stable retirement future.

Methodology

Empower’s “Retirement Readiness Snapshot” is based on online survey responses from 2,177 Americans ages 18+ fielded by a third-party panel provider from February 18-20, 2025. The survey is weighted to be nationally representative of U.S. adults (aged 18+).
 

¹ Diversification does not ensure a profit or protect against loss.