A new survey has found that 80 percent of Americans believe the Trump administration and Congress should prioritize legislation to help people plan and save for a secure retirement.
BlackRock’s study, which surveyed 1,000 registered voters between January 11 and January 15, found that only 28 percent believe the United States retirement system gives working Americans the necessary tools and resources to save for a secure later life. Only 18 percent are confident they will have enough money to see out their post-work years, while 51 percent are more worried about running out of money in retirement than dying.
America’s retirement landscape has changed significantly over recent years, with many Americans struggling with saving for later in life. A 2023 Pew Research Center report found that around one in five Americans aged 65 and older were still employed in 2023—nearly twice as many as 35 years ago. Rising costs, inflation eating away at purchasing power, and longer life expectancies are all reasons why it is harder to retire now than ever before.
“Today’s workers are struggling to save for retirement. They are traversing disruptions in the economy, a tenuous employment market, and the high cost of everyday living—and many are still regaining their financial footing from the COVID-19 pandemic and its aftermath,” the study said.
The Current Picture
The Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 and the SECURE 2.0 Act of 2022 are laws designed to help more Americans save for retirement. They were part of a more comprehensive spending and tax extension bill that President Donald Trump signed into law on December 20, 2019, during his first term.
The SECURE 2.0 Act of 2022 builds on the original SECURE Act to further enhance retirement savings. It raises the required minimum distribution (RMD) age to 73, allowing more time for tax-deferred growth. The Act also shortens the service requirement for part-time workers to access 401(k) plans, permits Roth employer matching contributions, and introduces penalty-free emergency withdrawals of up to $1,000 annually.
How Can Retirement Be Redefined?
While this recent legislation has sought to help Americans bolster their later life savings, experts told Newsweek there are a variety of ways the government could help more.
Small Business Incentives
Scott Buffington, vice president and general manager for retirement at Paychex, told Newsweek that with 50 percent of the U.S. workforce employed by small businesses, these employers should be motivated to help their employees with retirement savings.
“The government should continue to make it easier for small businesses to offer a payroll-deductible retirement plan solution,” he said. “Studies have shown that most people do not save for retirement outside of a workplace plan, and most small businesses are still not offering their employees a plan.”
“It’s critical to motivate small employers to offer something. For example, the Retirement Investment in Small Employers (RISE) Act is a bipartisan legislation that would allow microsized businesses with 1-9 employees to realize full retirement plan startup tax credits and benefits originally offered in SECURE Act 2.0,” Buffington said. “This would help these smaller businesses receive incentives similar to those that larger businesses currently receive.”
Looking Beyond America
Carson McLean, founder of Altruist Wealth Management, said the U.S. should look to other countries to help Americans catch up before retirement.
“Australia mandates employee retirement contributions with opt-out flexibility. This small behavioral shift—making saving the default—has had a profound effect,” he said. “Australians now hold over $150,000 AUD per capita in retirement savings.”
The median retirement saving held in America is $38,176, according to Vanguard Asset Management.
“When pensions gave way to 401(k)s, we shifted a complex burden onto individual workers,” McLean said. “Many never enroll. Others under-contribute or remain in low-growth options for years. Auto-enrollment and default investments have helped, but they only matter if people are actually contributing.”
“If we want to improve retirement security in America, we need systems that guide people toward success while still preserving personal choice,” McLean said.
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