The typical US worker has only $955 saved for retirement. Here are 7 ways to catch up

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There’s a new number causing waves for Americans thinking about their financial future: $955.

It’s the median amount workers have saved for retirement — including workers with no savings at all — and it comes directly from a 2026 report by the National Institute on Retirement Security (NIRS) (1).

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When you only look at workers with savings, the median balance rises to $40,000. Breaking it down further, for those nearing retirement (ages 55 to 64), the median is about $30,000.

No matter which number you use, experts say it’s not nearly enough to support a retirement that could last 20 to 30 years, especially with rising healthcare and long-term care costs.

The average American agrees. A 2026 survey by Northwestern Mutual found that Americans believed they need an average of $1.46 million to retire comfortably (2).

So, why aren’t they saving more for retirement?

“Today, too many households are forced to choose between paying their bills and saving for tomorrow,” Dan Doonan, executive director of NIRS, noted in the report (1).

But there’s still hope. Here’s what Americans can do to play catch-up.

Why retirement feels harder than ever

In comments to MarketWatch, Doonan pointed to a major shift in how Americans prepare for retirement (3).

Decades ago, many workers had guaranteed pensions, he said. Today, most are on their own with 401(k)s, IRAs or nothing at all.

At the same time, workers are being squeezed by financial pressures, including housing costs, child care expenses, student loan debt, aging parents and retirement savings. People are being asked to save more, and earlier, while paying more for everything else.

There’s another challenge with Social Security being under strain. According to the American Enterprise Institute (AEI), the Old-Age and Survivors Insurance Trust Fund is projected to run short of funds by 2032, at which point benefits could be cut by 24% unless Congress changes course (4).

While the data can seem alarming, some economists suggest the $955 headline number is misleading. Andrew Biggs, a senior fellow at the AEI, argues that not all Americans need to be saving for retirement (5).

In his view, there are some exceptions:

Very low-income workers will rely on Social Security.

Young people often have debt coupled with a low income.

Public-sector workers typically have pensions.

Others save through businesses or real estate investments, not formal accounts.

“Whatever NIRS may say, retirement savings have never been higher,” Biggs told MarketWatch. “And since we indisputably don’t have a retirement crisis today, there’s very little reason to think we’ll have one in the future.”

Part of the confusion comes from the different data sources.

For example, MarketWatch reports that research from the Transamerica Institute shows households earning under $50,000 have a median retirement savings of $2,000, those with $50,000 to $99,000 have $33,000, those with $100,000 to $199,000 have $147,000, and those with $200,000 and above have $565,000 (5).

Meanwhile, Fidelity Investments reports the average 401(k) balance reached $155,800 in the second quarter of 2026 (6). In that case, the number only reflects people who have 401(k)s.

What you can do to save more

Perhaps the major takeaway from the data — no matter which dataset you believe — is that many Americans might want to start saving more, and earlier.

Here are some more practical strategies to boost your retirement outlook in 2026.

Max out your retirement accounts

If your job offers a 401(k) match, contribute enough to get the full match if you can. Otherwise, you’re leaving free money on the table.

And don’t discount smaller contributions. Investor.gov offers this example: Investing $100 a month for 40 years means putting just $48,000 of your own money into the account. But assuming a 7% annual return, you could end up with $239,562 — more than five times what you contributed — thanks to the power of compounding (7).

That’s because your returns can begin generating returns of their own over time. The longer your money stays invested, the more opportunity it has to grow, which means even relatively small contributions made consistently can add up over the course of a career.

A platform like Acorns, for example, makes it possible to start investing for retirement through an Acorns Later IRA with as little as $5. Plus, it offers something typically associated with an employer-sponsored retirement plan: an IRA match.

Acorns Gold members can get a 3% match on new IRA contributions during their first year. Max out the IRA limit in 2026, and the Acorns Gold 3% match will add an extra $225 investment toward your retirement.

That’s free money going into your retirement account.

But you don’t have to max out your account to benefit. You can set up automatic daily, weekly or monthly contributions, allowing you to consistently put money toward retirement. Contributions must remain in your Acorns Later account for at least four years to keep the match.

Know the 2026 contribution limits

For 2026, the 401(k) contribution limit is $24,500, with an additional $8,000 catch-up allowed for workers aged 50 and over, bringing the total annual contribution to $32,500 (8). Americans aged 60 to 63 can also make use of the “higher catch-up” contribution limit, which is $35,750 in 2026.

As for IRAs, the annual contribution limit is $7,500, with a $1,100 catch-up contribution for those aged 50 and over.

Open an IRA

If your employer doesn’t offer a retirement plan or if you want to save more on top of it, opening a traditional or Roth IRA is a good start. Brokerages allow you to open an IRA online, often with no minimums.

These are some of the differences between IRAs:

Roths can be effective for younger workers and those expecting to be in a higher tax bracket later on (9).

Use an HSA as a retirement account

If you have a high-deductible health plan (HDHP), a Health Savings Account (HSA) can function as a retirement strategy. HSAs offer a triple tax advantage: contributions are pre-tax, investments grow tax-free and withdrawals for qualified medical expenses are tax-free (9).

After age 65, you can also withdraw HSA funds for non-medical expenses. Just keep in mind that you’ll pay regular income tax, similar to a traditional IRA.

Aim to replace 70% to 90% of income

Trying to figure out how much you’ll need? A common rule of thumb is that between Social Security and savings, you should aim to replace 70% to 90% of your pre-retirement income.

That advice comes from the U.S. Department of Labor, which assumes you’ll no longer be saving for retirement, have lower work-related costs and have no housing payments (10). It also doesn’t factor in healthcare, long-term care and inflation.

Along with building your retirement savings, creating a new potential source of income could help you work toward that target. And that income doesn’t necessarily have to come from stocks and bonds.

One option is rental real estate, which can generate income while giving you the potential to benefit from a property’s appreciation. However, buying and managing an entire rental property can require a significant amount of money and work.

Arrived offers another way in. The platform lets you invest in shares of vetted rental and vacation properties starting with as little as $100 — and without taking on the responsibilities of being a landlord yourself.

Once you’ve invested, you can potentially earn passive income from the property’s rental revenue while also benefiting from any appreciation in its value over time. Arrived handles the property management, while you can browse available properties and choose which ones you want to add to your portfolio.

If you want more flexibility, Arrived recently launched a quarterly secondary market, where investors can buy and sell shares of individual rental and vacation properties. That gives you opportunities to invest in properties you may have missed when they were first offered or sell eligible shares before a property reaches the end of its planned hold period.

The best part? For a limited time, when you open an account and add $1,000 or more, Arrived will credit your account with a 1% match.

Review your budget

You may not have to overhaul your lifestyle, but even small tweaks can make a difference.

For example, you could consider canceling unused subscriptions, investing raises or bonuses directly into retirement, setting up automatic contribution increases and renegotiating your phone, insurance and internet bills (11).

The money you free up can be redirected toward retirement. But first, you need to know where your money is actually going — and recurring expenses can be particularly easy to overlook.

A quick daily check-in of your accounts can show you exactly where your money is going.

An app like Rocket Money can easily flag recurring subscriptions, upcoming bills and unusual charges by pulling in transactions from all your linked accounts.

This can help you cut unnecessary costs, and then you can manually redirect savings straight into your retirement fund. No spreadsheets, no guesswork, no stress. Small habits like this can make a big difference over time.

Rocket Money’s intuitive app offers a variety of free and premium tools. Free features include subscription tracking, bill reminders and budgeting basics, while premium features — like automated savings, net worth tracking, customizable dashboards and more — make it easier to stay on top of your retirement contributions and overall financial goals.

Check your investments

Saving more is only part of the equation. If retirement is decades away, being too risk-averse could limit your growth potential. But if retirement is getting closer, taking on too much risk could leave your savings vulnerable to a market downturn at the wrong time.

If that $955 figure has you wondering whether you’re behind, a financial advisor can help you look beyond your account balance and determine whether your investments, savings rate and timeline are working together to give you the retirement you want.

But hiring an advisor can be a lifelong commitment, which might make or break your retirement. That’s why finding reliable advisors is crucial.

Advisor.com can match you with a financial advisor based on your finances, goals and preferences. Its network of fiduciaries is vetted based on factors including their track record, client ratios and regulatory background — and fiduciaries are legally required to act in their clients’ best interests.

Simply enter a few details about where you are today and where you want to be, and Advisor.com‘s AI-powered matching tool will connect you with a qualified professional who fits your unique needs.

You can then schedule a free, no-obligation initial consultation with your match. That gives you a chance to discuss how your portfolio is invested, whether you’re taking an appropriate amount of risk and what adjustments could help you make up ground toward your retirement goals.

Bottom line

At the end of the day, $955 might be an arbitrary number, but it does raise the alarm that Americans are struggling to balance today’s bills with tomorrow’s needs.

While the exact number may be debatable, Doonan pointed to realism in his final comment: “I don’t think there’s a disagreement about which way the wind is blowing … just saying a number’s not perfect, so we just ignore it, doesn’t make sense.”

Wherever you fall on the retirement savings spectrum, it’s never too late to make choices today that can improve your retirement tomorrow.

-With additional reporting by Clay Halton

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