Retirement study focuses on retirees’ goals

More than six in 10 Americans in the middle class say their top life priorities are enjoying life (63%) and being healthy and fit (61%), according to Retirement Throughout the Ages: The American Middle Class.

The study from the Transamerica Center for Retirement Studies was done in collaboration with the Transamerica Institute. 

The study reveals that while many middle-class workers are diligently saving for the future, economic uncertainty, caregiving responsibilities, and technological disruption continue to complicate their path to retirement security.

“The middle class embodies the American dream, but their retirement outlook is unclear,” said Catherine Collinson, CEO and president of Transamerica Institute and TCRS. “They’re working hard, caring for their families, and saving for the future while navigating an evolving economy, artificial intelligence, the aging population, and Social Security uncertainties.”

Starting early but struggling

Young adults in their twenties are showing promising savings habits but face multiple pressures. Nearly half (47%) say their career is a top priority, and most (86%) are employed or self-employed, with many juggling multiple jobs or side hustles. Yet 55% say they’re struggling to make ends meet, and more than half worry that AI and robotics could make their job skills obsolete.

Despite these challenges, 77% of twentysomethings are already saving for retirement, starting as early as age 21. However, many lack financial knowledge. Only 17% report having a strong personal finance understanding and have modest savings, with a median of $43,000 set aside for retirement.

For those in their thirties, financial planning has become a growing focus, with half (50%) citing it as a top life priority. Most are working (85%), often while managing family and caregiving responsibilities. Though 83% are saving for retirement, only 18% say they have deep financial knowledge and fewer than one in three have a written financial plan.

Their median retirement savings sit at $54,000, with many estimating they’ll need around $500,000 to feel secure, though nearly half admit that’s just a guess. 

“One of the most impactful things they can do is to create a financial plan,” Collinson advised.

Juggling work and family

By their forties, Americans often find themselves sandwiched between raising children and caring for aging parents. Half (50%) prioritize family, and 39% have caregiving duties. While 80% are saving for retirement, they face competing demands on their income.

The typical fortysomething has saved about $73,000 for retirement and expects to need roughly $500,000. Yet only a quarter have a written plan. 

“Now is the time to formalize goals, make course corrections, and seek professional advice,” said Collinson.

As they approach retirement, many in their fifties are realizing their savings may not be enough. The median amount saved is $112,000, while most believe they’ll need at least $600,000 to retire comfortably. About half plan to retire after 65 or not at all, but only 44% are focused on excelling at their current job.

Collinson warned that this group must be “hypervigilant about safeguarding their health and keeping their job skills up to date.” A written financial plan remains rare—only 21% have one—but could be vital in managing the final stretch to retirement.

Retiring, ready or not

Three in four sixtysomethings prioritize enjoying life, and most (89%) say they are doing so. Yet financial readiness varies. While 52% are retired, 40% remain in the workforce, and nearly half expect to retire at 70 or later. Social Security is a major concern, with 46% fearing benefit reductions.

The median retirement savings for those still working is $277,000, and fewer than one in three have strong financial knowledge. 

“By learning expert strategies, they could maximize income and ensure their savings last their lifetime,” Collinson said.

Among those aged 70 and older, most are retired and focused on health and happiness. However, many are financially unprepared for long-term care.

Nearly half (45%) cite declining health as a top fear, but only 16% feel very confident they could afford such care. Retirees in this age group have a median of $286,000 in savings excluding home equity, but long-term care planning remains rare—just one in four have a written retirement strategy.