51% of Americans Think They Will Outlive Their Savings, the Northwestern Mutual Study Found That 35% Have Done Nothing About It

Fifty-one percent of U.S. adults expect to outlive their savings, and 35% have taken no steps to address the concern. Among those who have saved for retirement, 25% have saved 1x or less of their current annual income, placing them far behind common retirement benchmarks for their age. Inflation continues to erode the real value of cash balances, while consumer sentiment remains pessimistic. Job conditions show low unemployment and higher hourly earnings, along with higher disposable income, yet higher earnings do not translate into savings or investment. The household savings rate has fallen from 6.2% of after-tax income in Q1 2024 to 4.0% in Q1 2026, with consumption absorbing most disposable income. Housing services and healthcare account for a large share of spending.

"51% of U.S. adults think they will outlive their savings, and 35% have taken no steps to address it. A majority sees the problem, but around a third of the worried population has taken no action. The survey covered 4,626 U.S. adults in January 2025, weighted to Census targets for age, income, region, and race. Among those who have saved for retirement, 25% have saved 1x or less of their current annual income."

"It won't come as a surprise to learn that inflation has continued to erode savings, as the Consumer Price Index reached 332.4 in April 2026, up from 320.6 a year earlier, reducing the real value of cash balances. University of Michigan consumer sentiment came in at 48.2 in May 2026, well into the pessimistic range and approaching levels historically tied to economic stress."

"Job conditions complicate the inaction narrative, with unemployment at 4.3% in April 2026, near the 12-month average in the historically low range. Average hourly earnings climbed to $37.41 in April 2026, up from $34.76 two years earlier. Per capita disposable income reached $68,617 in Q1 2026. Workers have jobs and more nominal income than two years ago."

"The Bureau of Economic Analysis shows a clear pattern in how households are using their money. The share of after‑tax income getting saved has slipped from 6.2% in the first quarter of 2024 to 4.0% in the first quarter of 2026. By early 2026, consumption was absorbing 92.3% of disposable income. Higher earnings didn't flow into savings or investment accounts. They went straight into spending."

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