Why Most Americans Feel They’ll Never Retire and 4 Ways to Change That

If retirement feels out of reach for you, you’re not alone. Recent surveys show that 68% of Americans aren’t sure they’ll ever be able to retire, and 79% of Americans say the country is facing a retirement crisis. A majority of Americans say today’s financial environment makes long-term planning feel out of reach, as economic uncertainty reigns.

Unfortunately, these fears reflect reality. Nearly 27% of people ages 65 to 74 were still in the workforce in 2023, up from 21.4% in 2003. That participation rate is expected to grow to 30.4% by 2033. In fact, people ages 75 and older are the fastest-growing age group in the workforce, more than quadrupling in size since 1964, according to Pew Research Center.

But if you want to retire, joining that cohort doesn’t have to be your fate. Below, we take you through four effective strategies to boost your retirement readiness.

Start With a Reality Check

“Most folks underestimate how long they’ll live and how much income they’ll need in those later years,” said Douglas A. Boneparth, president of Bone Fide Wealth in New York and a member of Investopedia’s advisor council. “Health care costs, long-term care, and even just rising rent or property taxes can blow a hole in a plan. Add in sequence-of-returns risk (if the market tanks just as you’re pulling money out), and suddenly what looked comfortable on paper feels precarious.”

Before settling on a retirement strategy, you’ll want to honestly assess where you stand now. Calculate the percentage of your income you’re putting toward your retirement and determine how much income you may need to replace in retirement. Experts typically recommend aiming to replace between 70% and 90% of your pre-retirement income. Use retirement calculators to gauge how prepared you are.

1. Create a Zero-Based Budget

“I always start with a zero-based budget: Every dollar of income gets assigned a job, whether it’s groceries, mortgage, or retirement,” Boneparth said. “That transparent plan helps clients see where they can trim ‘fun money’ without feeling deprived, so they can redirect those savings into a 401(k) or IRA.”

Unlike traditional budgeting that starts with previous spending patterns, zero-based budgeting begins each month from scratch. This forces you to intentionally allocate every dollar of income to specific categories—including retirement savings—before it’s spent elsewhere.

2. Maximize Tax-Advantaged Options

Many people miss chances to take full advantage of tax-advantaged plans like 401(k)s and individual retirement accounts (IRAs).

Health-savings accounts (HSAs) offer a “triple tax break,” Boneparth said. Contributions are pre-tax, growth is tax-free, and withdrawals for qualified medical expenses remain untaxed—and once you hit 65, you can use HSA dollars for non-medical expenses penalty-free, he said. He also recommends considering converting traditional IRAs to Roth IRAs in low-income years. “Converting some pre-tax balance to a Roth when taxable income dips can reduce future RMD [required minimum distribution] headaches,” he said.

3. Use the Bucket or Glide-Path Approach

“First, shore up your ‘safety bucket.’ Make sure you’ve got two to five years of living expenses in cash or short-duration bonds, so you don’t have to sell stocks at a loss,” Boneparth said. He adds that “bucket or glide-path approaches” are valuable because “automating a shifting allocation over time helps clients stay invested through volatility without the urge to pull out at the wrong moment.”

A bucket strategy divides your investments into different time-based segments—immediate needs (cash), medium-term goals (bonds), and long-term growth (stocks). This approach provides some comfort during market downturns since you know your immediate expenses are covered, allowing your longer-term investments time to recover. Glide-path strategies automatically adjust your asset allocation as you age, gradually becoming more conservative while maintaining the potential for growth.

4. Consider Changes to Your Social Security Plans

If you are in a position where you have to postpone retirement, there is a silver lining. Delaying taking your Social Security benefits, if you can, means higher payments when you do elect to begin taking them. “Even a few years’ delay can bump your benefit by 8% per year, effectively a guaranteed ‘investment’ with inflation protection,” Boneparth said.

The Bottom Line

Taking control of your retirement planning isn’t just about financial security—it’s also about having some peace of mind in uncertain times. These four strategies can help you build both financial resilience and the confidence that your retirement remains achievable, even when the economic landscape makes that seem further off than before.