63% of Americans Behind on Retirement Savings, Study Shows - Here’s Why

Nearly two in three (63%) Americans report they are falling short of their retirement savings goals, according to a recent FinanceBuzz survey. With many struggling to set aside money, understanding the roadblocks is key to learning how to set yourself up for retirement.

The survey included responses from 1,000 U.S. adults to find out what their biggest financial roadblocks were. Here are the top challenges respondents say are standing in their way when it comes to retirement savings.

More than three-quarters of respondents (77%) say higher living costs are eating into their ability to save for retirement. High prices for everyday necessities, from groceries to utilities, may leave less discretionary income to invest.

This strain may make long-term planning feel out of reach for many households. Without relief, basic living expenses continue to push retirement savings lower on the priority list.

Inflation has been a major hurdle for savers, with 75% of respondents saying it has directly affected their retirement goals. According to the U.S. Bureau of Labor Statistics (BLS), inflation hovered around 2.9% as of August 2025, up from 2.7% in July 2025. Current U.S. inflation remains higher than the 2% target inflation rate.

Even modest increases in prices can erode purchasing power and make future expenses harder to estimate. People who were saving a set amount may now find those contributions cover less. The uncertainty around inflation can make financial planning especially challenging.

Insufficient wages are another major barrier, with 61% of respondents citing it as a reason they cannot save enough.

When earnings barely cover essential bills, saving for retirement can feel nearly impossible. Without higher wages, many are forced to put retirement contributions on hold.

Over half of respondents (53%) say housing costs have limited their retirement savings. According to The Washington Post, rent and mortgage payments have surged in many areas, leaving little room in monthly budgets for investing.

Homeownership also brings maintenance and property tax costs that can further squeeze savings potential. With shelter being one of the largest household expenses, this roadblock is particularly difficult to overcome.

Health care costs are another significant burden, with 44% of respondents reporting that medical expenses reduce their ability to save. Rising health care premiums, copays, and out-of-pocket costs are expected to surge even higher in 2026, according to CNN.

Increased health care costs can eat into funds that might otherwise be earmarked for retirement. For those with chronic conditions or unexpected medical needs, the impact may be even more severe.

Credit card balances are also dragging down savings, according to 44% of respondents. High interest rates make it difficult to pay off balances quickly, keeping people stuck in cycles of debt.

This ongoing obligation can overshadow retirement contributions, as urgent bills take precedence. Until debt is reduced, many savers may feel unable to focus on long-term retirement goals.

Four in ten respondents (40%) say family-related expenses limit their retirement planning. Supporting children, paying for education, or helping elderly relatives may often take priority over savings.

While these costs are meaningful, they can make it difficult to stay on track with personal retirement goals. Balancing family needs with future security is a challenge faced by many households.

More than one-third of respondents (37%) say political and economic uncertainty makes retirement saving harder. Concerns about changing government policy, taxes, and the stability of Social Security can leave people questioning how much to set aside.

This uncertainty can lead to hesitation or reduced savings contributions. Unpredictable policy changes can make long-term planning feel less secure.

Beyond credit cards, other personal debts also weigh heavily on Americans' ability to save. Student loans, auto payments, and personal loans can drain funds that might otherwise support retirement accounts.

With 35% of respondents citing this as a barrier, it is clear that debt repayment is a widespread challenge. Carrying multiple obligations often leaves little room for retirement savings.

About one in three respondents (34%) say they lack the financial knowledge needed to save effectively for retirement. Without understanding important financial elements such as investment options, tax advantages, or savings strategies, it can be easy to miss opportunities to grow wealth.

This knowledge gap may lead to procrastination or poor decision-making. Financial literacy remains a crucial factor in achieving retirement readiness.

This recent FinanceBuzz survey highlights how rising costs, debt, and uncertainty are preventing many Americans from meeting their savings goals. While 63% say they are behind, the obstacles vary widely across households.

Understanding the roadblocks is the first step to overcoming them. Reflect on how these challenges apply to your own situation and what changes you can make today to stay on track with planning for retirement.