80% of Americans Say U.S. Faces Retirement Crisis Amid Affordability Pressures and Debt; Americans Wary of AI Financial Advice and Crypto in Retirement Plans
New National Survey Finds Rising Costs and Debt Squeezing Retirement Savings; 85% Want Washington to Make Retirement Security a Higher Priority
WASHINGTON, D.C., August 26, 2026 — As affordability pressures squeeze household budgets, Americans increasingly fear they will not be financially secure in retirement, while also expressing caution about artificial intelligence and cryptocurrency in retirement planning, according to new research from the National Institute on Retirement Security (NIRS).
The new report, Retirement Insecurity 2026: Americans’ Views of Retirement, finds that 80 percent of Americans say the nation faces a retirement crisis, up sharply from 67 percent in 2020. Additionally, more than six in ten Americans (61 percent) are concerned they will not achieve financial security in retirement.
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This nationwide survey also finds that Americans are navigating a rapidly changing financial landscape. Nearly two-thirds (63 percent) have used an AI tool, but 45 percent are uncomfortable with AI playing a role in delivering financial advice. And as policymakers debate expanding access to alternative investments in workplace retirement plans, 77 percent of Americans say cryptocurrency in retirement plans is risky, while 53 percent oppose employers offering it as an investment option.
“Americans are telling us that retirement security is becoming harder to achieve as they struggle with the affordability of everyday life,” said Dan Doonan, NIRS executive director and report co-author. “Housing, healthcare, debt and other expenses are competing with the need to save for retirement. At the same time, Americans are confronting new questions about AI and cryptocurrency as the retirement landscape becomes increasingly complex.”
The affordability squeeze is evident throughout the research. Nearly seven in ten Americans (68 percent) say preparing for retirement is becoming harder, up from 58 percent in 2020, and 45 percent say it will be much harder, compared with 31 percent in 2020. Among the factors making retirement preparation more difficult, Americans point to the rising cost of healthcare in retirement (91 percent), inflation (91 percent), long-term care costs (89 percent), wages not keeping pace with expenses (88 percent), and increasing debt (87 percent).
Those pressures are affecting Americans’ ability to save today. Seventy-nine percent say the average worker cannot save enough on their own for a secure retirement. Among the obstacles preventing Americans from saving more are paying down debt (41 percent), high housing costs (39 percent), emergency expenses (30 percent), healthcare and medical expenses (25 percent), lack of access to a workplace retirement plan (13 percent), and childcare costs (12 percent).
“If savings-based plans are going to produce good outcomes, retirement security ultimately begins with affordability,” Doonan said. “It is difficult to save for a retirement that may be decades away when families are struggling today to afford housing, healthcare and other necessities. That is the fundamental challenge policymakers and employers must confront if we want to improve retirement outcomes.”
Americans also want policymakers to pay greater attention to the issue. Eighty-four percent say leaders in Washington do not understand the retirement savings challenges facing Americans, while 85 percent say policymakers should make retirement security a higher national priority, up from 76 percent in 2020.
Key Findings
- Americans increasingly view retirement insecurity as a national crisis. Eighty percent say the nation faces a retirement crisis, up from 67 percent in 2020. Sixty-one percent are concerned they will not achieve financial security in retirement. Inflation (73 percent) and market volatility (62 percent) are contributing to these concerns, while 76 percent are worried about the possibility of Social Security benefit reductions if Congress fails to act.
- Affordability pressures are making it harder to save for retirement. Sixty-eight percent say preparing for retirement is becoming harder. Americans point to healthcare costs, inflation, long-term care, wages failing to keep pace with expenses, and debt among the factors making retirement preparation more difficult. Nearly three-quarters (74 percent) say debt is a problem for them, while 77 percent say debt prevents them from saving adequately for retirement.
- AI use is widespread, but Americans remain cautious about relying on it for financial decisions. Nearly two-thirds (63 percent) have used an AI tool, but 61 percent have not used AI to answer questions about their finances, investments, or retirement. Nearly half (45 percent) are uncomfortable with AI playing a role in delivering financial advice. There are significant generational differences, with younger Americans more comfortable with AI than older generations.
- Despite their caution, Americans see potential uses for AI in personal finance. Americans express interest in using AI for budgeting (38 percent), investing (34 percent), retirement planning (32 percent), paying down debt (30 percent), and tax planning (24 percent), suggesting consumers may be more comfortable using AI as a financial resource than relying on it for financial advice.
- Cryptocurrency in retirement plans draws skepticism. Fifty-three percent oppose employers offering cryptocurrency as an investment option in workplace retirement savings plans. More than three-quarters (77 percent) consider cryptocurrency in workplace retirement plans risky, including 46 percent who say it is very risky.
- There are significant gaps in Americans’ understanding of retirement savings and the income it will generate. Nearly half (47 percent) report having less than $100,000 saved for retirement, including 18 percent with no retirement savings. More than half (52 percent) waited until age 30 or later to begin saving. And when asked how much income $100,000 in retirement savings would produce annually, only nine percent selected a range consistent with a commonly used withdrawal guideline, which would generate approximately $4,000 in first-year retirement income.
- Retirement benefits are increasingly important to workers. Among current workers, 75 percent say retirement benefits are a very or extremely important factor when evaluating job opportunities, while 41 percent say retirement benefits have become more important to them during the past year.
- Americans continue to express strong support for pensions. Seventy-six percent have favorable views of pension benefits, while 84 percent of workers and retirees who have participated in a pension are confident those benefits will be there for them. Nearly seven in ten Americans (69 percent) say pensions do more than retirement savings plans such as 401(k)s to help workers achieve a secure retirement, up from 65 percent in 2020.
Pensions also have significant implications for employers seeking to attract and retain workers. When presented with two otherwise identical job opportunities, 57 percent of workers say they would choose the job offering a pension rather than a 401(k)-style retirement plan. Among workers without a pension, 84 percent say they would be much more or somewhat more likely to stay with their employer if it offered one, up from 74 percent in 2023.
“These findings make clear that there is no single solution to America’s retirement challenge,” Doonan said. “Improving retirement security requires addressing the affordability pressures that make it difficult to save today, expanding access to strong workplace retirement benefits, improving financial literacy, and ensuring that innovations in retirement and financial services are realistic and ultimately serve workers’ long-term financial security.”
Methodology
Conducted by Greenwald Research, information for this study was collected from online interviews between October 24, 2025 and November 14, 2025. A total of 1,203 individuals aged 25 and older completed the survey. The final data were weighted by age, gender, and income to reflect the demographics of Americans aged 25 and older. The sample was selected using Dynata, an online sample provider. Percentages shown in figures and tables are rounded. As a result, percentages may not always sum to 100 percent. When categories are combined, percentages reported in the text are based on the displayed values and therefore may differ slightly from those computed using unrounded values.
The National Institute on Retirement Security is a non-profit, non-partisan organization established to contribute to informed policymaking by fostering a deep understanding of the value of retirement security to employees, employers and the economy as a whole. Located in Washington, D.C., NIRS membership includes financial services firms, employee benefit plans, trade associations and other retirement service providers. More information is available at www.nirsonline.org.
