A typical American retiree reportedly needs $823,800 in savings to be able to retire comfortably in 2026—but the average American retiree only has $288,700 in savings, according to a new report by Clever Real Estate—highlighting a widening gap that many retired people are describing as a “retirement crisis.”
Is The US In A Retirement Crisis?
According to the official report, Clever Real Estate surveyed 1,000 retired men and women who stopped working around 11 years ago, in October 2025, to find out how they felt about their financial situation as typical American retirees.
The survey found that nearly two-thirds of retirees (64 percent) believe the United States is in a retirement crisis, nearly half (48 percent) lacked confidence they could sustain their current quality of life long-term, and around 23 percent were doubtful they could do so even for the next year.
Shockingly, just under half of the respondents think that retirement will be possible for a “typical American” in 25 years’ time.
How Much Money Do Retirees Need To Retire?
The study shows that retirees believe they need $823,800 to retire comfortably in 2026, which is up from an average of $580,310 last year. But the average retiree’s savings are only around $288,700—down from $308,040 last year—with 29 percent reporting having no retirement savings.
The survey revealed that 55 percent of retirees were prioritizing preserving their finances over enjoying retirement, with 67 percent saying they spent more than planned on groceries and 60 percent spending more than expected on insurance.
But perhaps most concerning is that 51 percent had no plan if their savings ran out.
How Are Retirees Living Now, Amid The Savings Crisis?
The report said 14 percent of retirees avoided medical appointments and 12 percent skipped meals to save money, while 43 percent said they would prefer to die than see their savings depleted, reflecting a deep level of pessimism among current retirees about their financial future.
The survey pinpointed housing as a key pressure point, with 49 percent saying a substantial drop in home value would impact their long-term plans, 25 percent said they weren’t sure if they’d be able to afford the current housing costs just one year from now, and 73 percent would do everything possible to stay in their homes, even if they could barely afford it.
Is There A Solution To The Retirement Crisis?
A previously proposed solution to help reverse the retirement crisis was to increase the average retirement age from 62 to account for people living longer and, therefore, needing more retirement benefits. But the report says that over half (58 percent) of the respondents were against this proposition.
Another solution that was put forward to those who were surveyed was to remove certain retirement benefits for people who didn’t need them. Only 33 percent agreed with this idea, and even fewer—18 percent—thought that retirees should get fewer retirement benefits if they have substantial savings or investments.
