Despite economic uncertainty, rising debt, and caregiving demands, America’s middle class remains committed to saving for the future, according to the 25th Annual Transamerica Retirement Survey: Retirement Throughout the Ages. The study of more than 5,600 adults with household incomes between $50,000 and $199,999 paints a complex picture of how consumers are managing competing priorities, such as balancing debt, savings, and health in an economy reshaped by inflation and artificial intelligence.
The financial juggling act: The report reveals that 55% of middle-class Americans say paying down debt is their top financial priority, followed by saving for retirement (48%) and building emergency savings (40%).
- The median emergency savings balance is $10,000, but more than one in 10 have none at all.
- Younger adults in their 20s have saved a median of just $2,000, compared with $20,000 for those in their 60s.
- Nearly one in three have taken a loan or withdrawal from their retirement account, which is a sign of ongoing financial strain despite long-term savings goals.
Saving for tomorrow, guessing how much is enough: Almost eight in ten middle-class workers are saving for retirement, typically through a 401(k) or similar plan. Yet nearly half admit they are guessing how much they need for a secure retirement, with a median target of $500,000. Fewer than one in three have a written financial plan, and only 35% use a financial advisor.
Generational differences are stark:
- Those in their 20s start saving at age 21, while those now in their 60s didn’t start until age 32.
- Americans in their 60s have accumulated a median of $277,000 in retirement savings, but many expect to rely heavily on Social Security. Their greatest retirement fear is that the program will be reduced or disappear.
Work, stress, and optimism: While 62% of middle-class Americans are working, many fear the impact of AI and automation. Over half of those in their 20s worry that technology could make their skills obsolete. Despite this, 84% say they enjoy life and 85% report being generally happy.
The bottom line: Middle-class Americans are optimistic, yet uneasy.
