Mounting financial pressures and gender disparities are threatening the retirement security of America’s middle class, according to a new report from the Transamerica Center for Retirement Studies (TCRS).
The report,“The American Middle Class: Influences of Gender on Retirement Security,” surveyed more than 7,600 U.S. residents with household incomes between $50,000 and $199,999.
Researchers found that while many middle-class Americans express positive feelings about life, they are simultaneously grappling with significant financial distress, juggling competing priorities and facing deep insecurities about their future.
Catherine Collinson, CEO and president of Transamerica Institute and TCRS, described the middle class as embodying the American dream but facing formidable challenges.
“The middle class is feeling the effects of inflation, juggling competing financial priorities and making hard choices,” she said.
The study found that 72% of respondents have taken actions in response to financial strain, from reducing daily expenses to accumulating new credit card debt. Paying off debt is the top financial priority for 58% of the middle class, while saving for retirement is a priority for half.
Gender plays a significant role in financial preparedness.
Data shows median retirement savings of $82,000 for men, compared to $49,000 for women. Women were also more likely to report feeling burned out and to prioritize covering basic living expenses.
While many workers aspire to extend their careers, the report notes that unforeseen circumstances often derail these plans. The median retirement age is 63 for men and 62 for women, with nearly half of retirees leaving the workforce sooner than intended.
“Middle-class workers’ plans to work longer and retire at an older age could be easily thwarted by AI and robotics which are reshaping the workforce and the future of work,” Collinson said. “Many middle-class workers are worried about job obsolescence.”
The survey also highlights a reliance on self-funded savings, with 42% expecting 401(k)s, IRAs or other investments to be their primary retirement income source, while 28% plan to rely primarily on Social Security.
Additionally, the findings illustrate broader anxieties about the future of the social safety net. The report notes that 74% of non-retired respondents are concerned Social Security will not be available when they retire.
This article was generated using HousingWire Automation and reviewed by a HousingWire editor before publication.