The US retirement landscape is facing a critical challenge, according to new data from PensionBee’s Q2 Happy Retirement Report, revealing stark deficiencies in savings that threaten financial security for millions.
Conducted between May 9 and May 13, 2025, by Attest with 1,000 respondents aged 18 to 100, the survey exposes a troubling reality: 42% of Americans have less than one year’s worth of retirement savings, and nearly one in three (30%) couldn’t survive beyond six months if they stopped working tomorrow.
This paints a picture not just of a retirement problem, but of a broader survival crisis, as traditional pensions dwindle and Social Security faces potential cuts.
The research findings are particularly dire for women, especially those navigating life after divorce, separation, or widowhood.
Nearly one in four (23%) of these women report having less than one month’s worth of retirement savings, compared to fewer than one in ten men in similar circumstances.
This stark gender disparity underscores the disproportionate financial risks women face during major life transitions.
While 38% of women overall have less than six months of savings—compared to 23% of men—the situation worsens post-marital transition, with women nearly twice as likely to face alarmingly low savings.
Only 38% of women in these circumstances plan to increase retirement contributions in the coming year, compared to 57% of men, and just 4% of these women maxed out annual contribution limits for at least one retirement account, versus 11% of men.
Romi Savova, CEO of PensionBee, emphasizes the gravity of these findings stating these are warning signs that indicate risks can turn personal hardship into longterm insecurity.
The data also highlights differences in planning behaviors: 43% of women post-marital transition report having a loose retirement plan, lacking clear goals, compared to 21% of men.
Only 9% of these women work with a financial advisor, versus 18% of men, further exacerbating the gap.
The broader survey reveals systemic issues across generations. Only one in ten Americans believes their savings could sustain them for a decade or more.
Baby Boomers, despite reporting the highest retirement optimism at 51%, face their own challenges, with nearly half (49%) having five years or less of savings.
This optimism, rooted in an era of pensions and affordable healthcare, may not align with modern realities of later retirement ages and reliance on part-time work.
Gen Z, with 43% optimism, shows proactive behaviors—25% plan to seek financial advice, and 29% use online planning tools—but 19% have already taken hardship withdrawals, signaling financial vulnerability.
Despite these challenges, there are glimmers of hope.
Half of Americans plan to increase contributions this year, indicating growing awareness.
However, confidence has dipped, with only 41% reporting a positive retirement outlook in Q2, down over 10% from Q1, reflecting market volatility and systemic issues.
Savova notes:
“The widespread lack of retirement preparedness isn’t something workers can solve alone. Employers have a critical role beyond just offering a 401(k).”
She advocates for automatic enrollment, better education, and support for preserving savings during job transitions.