American workers dream of throwing in the towel in their mid-60s and spending the rest of their days enjoying retirement — but that’s becoming less of a reality for many. In fact, many professionals can make the leap toward exiting the workforce as they age with a thin financial safety net.
Half of private-sector working-age Americans do not have a retirement account, according to a recent AARP data analysis by Torsten Schlock, chief economist at Apollo Global Management. As expected, those still building their careers are the worst; About 57% of Gen Xers and young millennials aged 18 to 34 have no plan set up. However, this issue also extends to older generations who have decades of experience under their belts.
About 43% of Americans aged 34 to 44 working in private companies do not have a retirement plan, as well as 41% of those aged 45 to 54, and 40% of American workers aged 55 to 65. This means that four out of 10 US Gen Xers, and some Baby Boomers as well, have invested in a money plan.
And as many of these older workers barrel toward the end of their careers, this could spell trouble for their life expectancies after leaving the payroll.
Most Americans say they live paycheck-to-paycheck; Since housing costs, childcare, and groceries make up the majority of workers’ incomes, setting aside money for retirement can seem like a tall order. Finances have become so dire that some are dipping into what they had already set aside for life after work.
According to Payroll Integration’s 2025 report, nearly 38% of professionals of all generations have withdrawn money from their retirement accounts. And while Gen Xers were still grinding for better pay and were likely to take money out of their plans, nearly half of young adults had already dipped into their retirement funds.
However, 31% of Millennials and 41% of Gen Xers and Baby Boomers also withdrew money from their retirement savings. Most of the early withdrawals arose from unexpected emergencies and increased debt repayments.
And to make ends meet, more Americans are bucking traditional timelines and holding onto their jobs longer.
According to a 2023 analysis by the Pew Research Center, the number of working people over age 65 in the U.S. has quadrupled since 1980. And withered late in life there is real concern in their coffers; According to a 2025 survey by investment banking firm DA Davidson, two out of five retired Americans, amounting to nearly 20 million people, worry that their funds will not be able to support their ideal retirement lifestyle.
