Retirement Realities of the American Middle Class Revealed in New National Report

A new survey-based report, Retirement Throughout the Ages: The American Middle Class, published by Transamerica Center for Retirement Studies® (TCRS) in collaboration with Transamerica Institute®, dives into how Americans across generations are preparing for life after work. It paints a nuanced picture of optimism mixed with uncertainty, as middle-class workers confront economic shifts, evolving expectations of work, and the rising cost of health and long-term care.

Americans are clear about what matters most to them. Enjoying life (63%) and staying healthy and fit (61%) are top overall priorities. Yet only 42% place long-term financial planning among their highest concerns, highlighting the gap between lifestyle aspirations and actual retirement readiness.

Twentysomethings: Pressured but Proactive

Those in their 20s are just beginning their careers, while many juggle side hustles and family responsibilities. This generation dreams of success, flexibility, and personal fulfillment. Career growth is a top priority, and 86% report being employed or self-employed.

In a hopeful sign, most have already begun saving for retirement typically at age 21 far earlier than previous generations. They demonstrate strong willingness to learn and adapt, though many acknowledge personal finance is an area where they lack confidence.

What sets them apart is anxiety around technological change. The majority worry AI could make their jobs obsolete. Despite these concerns, their early savings habits and openness to skill-building create opportunities to build strong long-term financial foundations.

Thirtysomethings: Prioritizing Financial Goals and Family

By their 30s, financial realities come into sharper focus. Nearly 83% of Americans at this stage are actively saving for retirement. Their priorities now include family, home ownership, and income growth.

However, this group is still finding its footing in structured planning. Only 29% have a written retirement strategy, and many rely on rough estimates when determining how much they will need later in life. Rising living costs and caregiving responsibilities from raising young children to supporting dependent parents heighten financial strain.

Side jobs continue to be common, not for lifestyle upgrades but to build security and handle monthly obligations.

Fortysomethings: The Sandwich Generation

Fortysomething face peak pressure. Positioned between dependent children and aging parents, they are often called the “Sandwich Generation.” Eight in 10 are saving for retirement, but competing financial priorities housing, education, and healthcare chip away at progress.

A striking concern emerges: only 18% say they have high personal finance knowledge. This leaves many feeling unprepared for decisions about retirement investments, healthcare coverage, and long-term planning. For this group, the 40s become a critical decade for seeking professional advice and recalibrating savings if they’re falling behind.

Fiftysomethings: Approaching the “Retirement Danger Zone”

Those in their 50s are nearing retirement but may feel it slipping further out of reach. The data points to a median retirement savings amount of $112,000 insufficient for the decades many will spend post-retirement.

Health, job stability, and caregiving challenges can derail last-minute saving efforts. Just 21% have a written retirement strategy, indicating a significant planning shortfall despite the urgency of their timeline.

Sixtysomethings: Retiring Ready — or Not

A majority of this group is either preparing to leave the workforce or transitioning into partial retirement. Many are excited about new freedom travel, leisure, and pursuing long-delayed personal goals.

However, concerns loom large over potential reductions in Social Security benefits and the risk of outliving savings. While experience brings financial perspective, fewer than one-third feel highly knowledgeable about personal finance, leading many to adopt cautious spending patterns.

Age 70+: Enjoying Retirement but Vulnerable to Care Costs

Older retirees report overall contentment financial steadiness, family connections, and the relief of having exited the workforce. Yet nearly half expect to rely on family if they need long-term care, revealing a major vulnerability. With rising life expectancy, many will require assistance that falls outside conventional health coverage.

As more middle-class Americans enter their later years, long-term care planning becomes a growing national concern.