Rising living costs and uncertainty about future retirement income are leaving many American workers worried about their financial futures, according to a new report from the Transamerica Center for Retirement Studies. The study, Stressed and Strained: Four Generations Strive for Retirement Security, finds that 78% of workers say the high cost of living makes it harder to save for retirement, while 65% fear they could work until retirement and still fall short of their financial needs. The findings highlight a growing challenge for employers and HR leaders: helping employees prepare for retirement while navigating debt, caregiving responsibilities and competing household expenses.

Retirement savings remain a workforce concern

Retirement security is becoming an increasingly important consideration for employers as workers contend with persistent living costs, financial obligations and uncertainty about future income. A new multigenerational survey from the Transamerica Center for Retirement Studies (TCRS), in collaboration with Transamerica Institute, suggests that many employees are struggling to balance immediate financial needs with long-term retirement planning.

The report, Stressed and Strained: Four Generations Strive for Retirement Security, finds that 78% of American workers agree that today’s high cost of living is making it harder to save for retirement. Nearly two-thirds, or 65%, say they could work until retirement and still not save enough to meet their needs. Meanwhile, 73% are concerned that Social Security will not be available when they retire, and 41% identify outliving their savings and investments as one of their greatest retirement fears.

For employers, these concerns extend beyond personal finance. Financial pressure can intersect with employee wellbeing, retention, benefits utilization and decisions about when workers can afford to leave the workforce. The report does not establish that financial anxiety directly causes lower productivity or higher turnover, but it highlights the economic pressures employees are managing alongside their jobs.

Catherine Collinson, CEO and president of Transamerica Institute and TCRS, said the retirement system places more responsibility on individuals to fund their later years than it did for previous generations. Inflation, competing financial priorities, uncertainty around Social Security and possible employment disruptions add complexity to that responsibility.

Four generations, different financial pressures

The report examines retirement preparedness among Generation Z, Millennials, Generation X and Baby Boomers. Although all four groups face financial concerns, their priorities differ according to their stage of life, household responsibilities and proximity to retirement.

For Generation Z workers aged 18 and older, establishing financial stability is an immediate challenge. Half say they are struggling to make ends meet, while 28% hold more than one job and 52% have a side hustle. Paying off debt is a priority for 56%, compared with 40% who identify retirement saving as a current priority. Their estimated median household retirement-account savings stand at $37,000.

These workers are also managing family responsibilities earlier in their careers. One-third have served or are serving as caregivers for a relative or friend. Among those caregivers, 90% report making an employment adjustment, such as missing work, reducing hours, passing up a promotion or leaving a job.

Millennials face a different combination of obligations. Many are balancing work with raising children and supporting aging parents. According to the survey, 58% say debt interferes with their ability to save for retirement, and 44% would prefer to postpone thinking about retirement investing until they are closer to retirement age. Their estimated median household retirement-account savings are $73,000.

Caregiving also affects this generation’s employment. Thirty-seven percent of Millennial workers have served or are serving as caregivers, and 90% of those caregivers report adjusting their work situation because of those responsibilities.

For HR teams, these findings illustrate why a single financial-wellness message may not address the needs of every employee. Younger workers may need support with debt, emergency savings and building early retirement contributions. Employees supporting children or aging relatives may face competing demands that affect their ability to save consistently.

Generation X and Baby Boomers face retirement decisions

Workers approaching retirement face a different set of challenges: whether existing savings will be sufficient and whether they can continue earning an income for as long as planned.

Only 18% of Generation X workers say they are very confident they will be able to retire fully with a comfortable lifestyle. More than one-third, or 36%, expect to retire at age 70 or later or do not plan to retire. Meanwhile, 53% expect to continue working during retirement.

Generation X workers report estimated median household retirement-account savings of $113,000. Nearly half, 49%, expect their primary retirement income to come from self-funded savings, including workplace retirement accounts and individual retirement accounts, or other investments.

Baby Boomers who remain in the workforce report an even stronger expectation of working longer. More than half, 55%, expect to retire at age 70 or later or do not plan to retire. Their estimated median household retirement-account savings are $263,000.

However, savings alone do not eliminate uncertainty. Forty-two percent of Baby Boomer workers expect Social Security to be their primary retirement income source. Just 28% have a written financial strategy for retirement, according to the report.

For older employees, the ability to continue working may depend on health, job availability and the nature of their work. Employers that rely on experienced workers may therefore need to consider retirement planning alongside succession planning, flexible work arrangements and knowledge transfer.

The role of HR benefits and financial wellbeing

The findings create an opportunity for employers to review how retirement benefits fit into their broader employee experience strategies. Access to workplace retirement plans is one element of retirement preparedness, but employees may also need help understanding plan features, setting savings goals and navigating competing financial commitments.

HR teams can examine whether employees understand available retirement benefits, including employer contributions where offered, enrollment options and the long-term implications of withdrawing savings early. Financial education and access to qualified guidance may help employees make more informed decisions, although these measures cannot resolve underlying affordability problems on their own.

Employers can also consider whether benefits communications reflect different life stages. Early-career employees may respond to practical guidance on emergency savings and starting retirement contributions. Mid-career workers may benefit from resources addressing caregiving and family financial pressures. Employees nearing retirement may need help evaluating savings, expected income and contingency plans if they cannot work as long as anticipated.

Caregiving deserves attention within workforce planning, too. The high proportion of caregivers reporting changes to their employment suggests that family responsibilities can affect work arrangements and career decisions. Flexible scheduling, leave policies and clear benefits information may help employees manage those demands, depending on the employer’s circumstances and available resources.

Retirement security is a shared responsibility

Transamerica Institute argues that retirement security depends on several connected factors, including a strong economy, a healthy labor market, access to workplace retirement plans and an affordable cost of living. The report also points to long-term funding concerns surrounding Social Security and Medicare.

Employers cannot control inflation or determine the future of public retirement programs. They can, however, review their own benefits offerings, make plan information easier to understand and help employees identify the resources available to them.

The report’s central message is that retirement preparedness varies across generations, but financial strain is widespread. For HR leaders, retirement benefits are not simply a plan-design issue. They are part of a broader conversation about employee financial wellbeing, caregiving, workforce longevity and the conditions that allow people to sustain their careers while preparing for life after work.

Market Landscape

Retirement benefits sit at the intersection of compensation, employee financial wellbeing and workforce planning. As employees face pressure from living costs, debt and family responsibilities, employers may need to communicate retirement benefits more clearly and assess whether existing programs meet the needs of different workforce segments.

The findings also connect retirement planning with the broader benefits technology market, including platforms that support retirement plan administration, financial education and employee benefits engagement. These tools can help employers make information more accessible, but technology alone cannot guarantee higher savings or financial security.

The Transamerica report is survey-based and reflects workers’ reported attitudes and estimated retirement savings. Its results should be interpreted as indicators of financial pressure and preparedness rather than proof that a particular benefits strategy will improve retirement outcomes.

Top Insights

• 78% of surveyed American workers say the high cost of living makes it harder to save for retirement, underscoring the pressure on household financial planning.
• 65% fear they could work until retirement and still fall short of their financial needs, while 73% worry Social Security will not be available.
• Debt, side jobs and caregiving create competing financial priorities for younger workers, potentially complicating consistent retirement contributions and long-term planning.
• More than one-third of Generation X workers expect to retire at 70 or later or never retire, while 53% plan to work during retirement.
• Employers can review retirement-plan communications, financial education and caregiver support, while recognizing that workplace benefits cannot resolve broader affordability challenges.

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