10 Alarming Retirement Statistics You Can’t Ignore

For certain folks, there’s something they find more frightening than snakes, spiders and (gulp) public speaking. Nope—it’s not even a trip to the DMV. We’re talking about retirement.

In fact, a recent survey found that 67% of Americans are more afraid of running out of money in retirement than they are of dying.⁶ But listen, you shouldn’t be afraid of your golden years. They’re called “golden” for a reason!

We’re not sharing these alarming statistics to scare you—we just want you to be aware of what can happen if you don’t take control of your finances. Hopefully, these numbers will get you fired up and wired up to start preparing for the future. Because the best time to start saving is always right now.

33% of Americans have more credit card debt than retirement savings.

According to Schroders’ 2026 U.S. Retirement Survey, 33% of Americans who currently participate in a workplace retirement program have more credit card debt than retirement savings.⁷ That’s a lot of people, and the trend is moving the wrong way. And we’re not even including other kinds of debt like student loans or auto loans in this equation.

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If you’re in that 33%, you’re setting yourself up for a boatload of trouble down the line, especially in retirement.

Social Security payments are around $24,850 a year.

Thinking about relying on Social Security for retirement? Think again. As of January 2026, the average retired worker got $2,071 per month from Social Security. That’s only $24,852 a year.⁸

Do you think that’ll be enough for your retirement? We don’t either. In fact, even the Social Security Administration has said Social Security isn’t meant to replace all of your income.⁹

Only 58% of Americans own stocks.

Only 58% of Americans say they own stocks, which means the other 42% haven’t invested in the stock market at all.¹⁰ Yikes! And that’s actually a step back from 62% just a couple years ago—the first real dip in stock ownership in a while.

If you’re part of that 42%, it’s time to get started on your investing game. (That is, if you’re financially ready to invest.) If you’ve heard us say it once, you’ve heard us say it a thousand times: You need to build wealth!

Americans with debt are far less likely to feel financially independent.

According to Ramsey’s State of Personal Finance report, only 63% of Americans carrying consumer debt say they feel financially independent, compared to 80% of those who are debt-free—a 17-point gap.

The biggest problem with debt is that it takes away your most important wealth-building tool: your income. Every dollar you pay to a lender each month is one less dollar you can save and invest for the future. Is it surprising that carrying debt makes it harder to take control of your money?

That’s a great reason to pay off all consumer debt with the debt snowball method before you even think about investing for retirement.

54% of American workers are living paycheck to paycheck.

There’s no getting around the fact that life is tough when you’re living paycheck to paycheck. The trouble is, about half of Americans (54%) are doing just that, according to research by Ramsey.

How can you possibly build enough wealth to retire if your bank account keeps hitting zero? If this is where you’re at, put all your investing on hold.

Because right now, it’s time to walk the Baby Steps. Save up $1,000 for a starter emergency fund as quick as you can, then begin paying off your consumer debt—with lots of intensity. You can do this!

22.7 million Americans can’t afford their rent.

Recent research from Harvard shows that 49% of all American renters are struggling to pay their rent. In fact, another all-time record was set in 2024: 22.7 million renters are spending more than 30% of their income on rent and utilities.¹¹ Spending more than 25% on your rent or mortgage gives you less margin every month to save and invest—or do anything else, for that matter.

If you’re having trouble fitting rent into your budget, it’s time to:

• Pause investing
• Cut back on spending
• Increase your income
• Look around for somewhere less expensive to call home

Shelter (which includes rent) is one of what we call the Four Walls—the four basic expenses you need to cover before you worry about anything else (the others are food, utilities and transportation).

You should secure the roof over your head before you even start the Baby Steps—let alone invest for retirement. Do what you need to do to fix the problem so you can get back on track.

Americans have over $1.2 trillion in credit card debt.

This should really get your attention: Another edition of the Ramsey State of Personal Finance report found that 39% of Americans say they’re relying on their credit cards for everyday life, and 23% had maxed out a credit card in the last 90 days.

In fact, Americans have over $1.2 trillion in credit card debt.¹² And that’s just credit card debt. Surely we’re not the only ones who think this is a terrible idea.

Debt is a thief. Trying to save for retirement while holding onto your debt is like running a marathon with a backpack full of bricks—you’re not going to make it with all that extra weight. As long as you have these bloodsucking credit card companies draining your income every month, you’ll always be in catch-up mode.

Only 35% of nonretired people feel on track with their retirement savings.

Even though retirement is a top goal, 65% of Americans feel behind on their retirement savings. This stat has been the same since 2024, so things aren’t getting better.¹³

But (spoiler for the next stat) plenty of workers still haven’t figured out how much they need to save for retirement.

Ramsey Solutions is a paid, non-client promoter of SmartVestor Pros.

Only 23% of workers have written down their financial strategy for retirement.

Any big achievement or goal—like funding your retirement—requires a strategy for success. And one of the best ways to achieve any goal is to write it down. And yet, fewer than 1 in 4 Americans (23%) actually have a written plan for retirement.¹⁴ That’s not going to cut it!

If you still need to figure out how much you’ll need to save up for your golden years, our free retirement assessment tool can help you calculate how much you’ll need in your nest egg to enjoy the kind of retirement you’ve always dreamed of—and what you’ll need to invest each month to get there.

Only 32% of Americans use a financial advisor.

A majority of Americans in 2026 either aren’t getting professional financial advice or are getting it from a family member. In fact, only 32% say they’ve used a professional financial advisor, 35% turn to family, and 73% just research it themselves.¹⁵  Trying to save for retirement without a pro on your side is like wandering into the wild without a guide (or even a decent plan). You’re going to get lost . . . or worse.

There’s a reason why 68% of millionaires said they worked with a financial advisor to help them reach their net worth goals. Millionaires recognize that they don’t have all the answers. And they’re not afraid to seek out the wisdom of someone who can help them get where they want to go. Do yourself a favor and get connected with an investment pro.

Retirement Statistics to Give You Hope

Wow—after all those dreary numbers, we bet you could use some positive news about retirement. Kind of like watching your favorite comedy after a scary movie so you don’t have nightmares. Well, here’s some good news from Ramsey’s National Study of Millionaires: 

• 8 out of 10 millionaires invested in their company’s 401(k) to help them reach their net worth. You don’t have to hit the lottery, make risky single-stock investments, or inherit a fortune to retire a millionaire.
• 3 out of 4 millionaires said regular, consistent investing was the key to their success. And 79% didn’t receive an inheritance to get there.
• What careers produce millionaires? The top five are engineers, accountants, teachers, managers and attorneys. In fact, only 15% of millionaires held senior leadership roles (CEO, CFO, COO, etc.). No matter what you do for work, you can build wealth and reach a seven-figure net worth over time.  
• 93% of millionaires said they got their wealth because they worked hard, not because they had big salaries. Anyone can and should be able to retire well in America today.

It’s Not Too Late to Start

In spite of all the bad news out there, the American dream is not only alive and well but freely available too. If you start today, it’s not too late to change your financial picture. As Dave Ramsey always says, “The best time to start a plan is 10 years ago, but the second-best time is right now.”

Listen, your retirement years don’t have to be troubling or frightening. It’s time to get rid of the fear, take charge of your finances, and make better decisions going forward. That means getting into the 7 Baby Steps—the surefire way to bring your dollars under control and build real wealth.

Patti, a member of THE Ramsey Baby Steps Community on Facebook, admits that starting the plan can be difficult, but the long-term benefits for you, your money and your family are worth it. “Going into this program is scary,” said Patti. “Trust the plan. It really works. I started when I was 40 and I’m doing just fine. I even cashed flowed a daughter through college.”

“Going into this program is scary. Trust the plan. It really works. I started when I was 40 and I’m doing just fine. I even cashed flowed a daughter through college.”

— Patti—Avon Park, FL

And if you’re ready to invest (Baby Step 4), find an investment pro who’ll stick with you for the long haul and help you stay on track.

Talk With a SmartVestor Pro

Our SmartVestor program is a free way to get connected with investment professionals who can help you plan for your retirement future.

“I’d talk to a [SmartVestor] Pro,” said Betty, another member of THE Ramsey Baby Steps Community on Facebook. “I did, and it was the best decision I made. He helped me with all the numbers and calculations. I’ll be 65 this year, I’ve been with him since I was 60.”

It’s not too late to start preparing. Get in touch with a SmartVestor Pro today!