Retirement Savings Trends: Middle-Class Workers Struggle While Gen Z Makes Progress
A recent report suggests that many U.S. workers are saving less for retirement, indicating economic pressures on the middle class. Dayforce, a payroll firm, analyzed data from 2022 to 2025 and found that the retirement savings rate for full-time workers decreased to 8.9% in 2025 from 9.2% in 2024, with 26% of savers reducing their contributions last year. The decline was most significant among workers earning between $50,000 and $150,000 annually.
According to Jason Rahlan, Dayforce's global head of sustainability and impact, the U.S. economy has been relatively stable, but higher earners have benefited more. However, everyday expenses like utilities and housing costs remain high, leading many workers and their families to face affordability challenges.
On a positive note, Generation Z workers, born between 1997 and 2012, have shown significant improvements in their retirement savings habits. Over the past three years, Gen Z workers have increased their participation rate, savings rate, and contributions. Their participation rate rose from 63.4% to 69.5%, while their savings rate increased from 4.5% to 6.2%, with annual contributions rising from $1,952 to $3,119.
In conclusion, the report highlights the concerning trend of declining retirement savings among U.S. workers, particularly in the middle-income bracket. It also underscores the positive strides made by Generation Z workers in saving for their future, despite economic challenges.