The Surprising Retirement Safety Net Almost Half Of American Workers Don't Have

There are, unfortunately, many forces working against both the short- and long-term financial flexibility of many Americans in 2026. Notably, the impact of these forces on retirement savings is more palpable than ever. According to an analysis of April 2026 AARP data, wealth management firm Apollo found that nearly half of all Americans working for private companies reported not having any money saved in a retirement savings plan, with 40% of workers between the ages of 55 and 65 saying the same. With the full retirement age in the U.S. currently at 67 for workers born during and after 1960, Apollo's research suggests there's a sizable community of people facing a financially tight (or even non-existent) retirement budget — even if they implement strategies to catch up on retirement savings immediately.

The percentage of younger generations without an IRA, 401(k), or similar retirement plan is even more concerning: 57% of private-sector workers under the age of 35 reported not having a plan, while over 40% of workers between 35 and 54 — considered peak earning years for many — reported being in the same boat. These numbers are further supported by the National Institute of Retirement Security, which found that only 67% of private-sector employees had access to retirement plans, as of 2023. While that figure is a full 20% higher for government employees, the Bureau of Labor Statistics (BLS) reports that state, local, and federal government positions only made up around 13.8% of all American jobs in 2024.

One of the central reasons that so many workers in America don't have retirement plans is that it's not financially viable for many private companies — and small businesses especially — to even offer them to their workforce. Between the costs associated with setting up and managing retirement accounts to the potential for offering matching employer contributions, many organizations lack the resources necessary to make these plans widely accessible. While this can be less of an obstacle for larger companies with the flexibility to shop around, 2025 BLS data suggests that over 50% of the U.S. private sector is made up of companies with less than 500 employees.

The costs associated with employer-sponsored retirement plans can, and do, push businesses to simply not offer them — with the workers ultimately paying the price. However, there's not much workers can do as things like housing costs and student loan debt – not to mention ever-increasing food costs — continue to strain their budgets. These rising expenses leave many Americans with less flexibility and fewer choices about where and even what kind of work they can get — let alone the time and money to contemplate the potential of saving for retirement.