3 Real Reasons Middle-Class Americans Aren’t Saving for Retirement in 2025

Core Insights - Nearly 25% of middle-class Americans have not saved for retirement, indicating significant financial stress within this demographic [1][2] - A TruStage survey reveals that 22% of middle-class Americans with household incomes between $55,000 and $160,000 have not started saving for retirement, citing low income, urgent expenses, and lack of financial guidance as primary obstacles [2][3] Group 1: Financial Barriers to Retirement Savings - 45% of middle-class Americans report insufficient income as a barrier to saving for retirement [3] - 27% prioritize urgent financial needs, such as medical expenses and student loans, over long-term savings [3] Group 2: Recommendations for Improving Retirement Savings - A mindset shift is necessary to balance urgent financial needs with retirement planning, viewing retirement as a series of manageable steps [4] - Small contributions to retirement accounts, such as automating monthly deposits of $25 or $50, can help build savings over time [4] - Utilizing employer-sponsored plans with matching contributions can maximize savings potential [4][5] - Considering flexible retirement vehicles like Registered Index-Linked Annuities (RILAs) can provide downside protection [4][5] - Establishing an emergency fund can help manage unexpected expenses without derailing long-term savings [5] - Leveraging digital tools like budgeting apps can assist in tracking spending and identifying savings opportunities [5]