By Dennis Seid
Northeast Mississippi Daily Journal, Tupelo
(TNS)
TUPELO, MS — To enjoy retirement, Americans say they’ll need about $1.5 million in savings.
But the typical worker has less than $1,000 saved, according to a recent report by the National Institute on Retirement Security.
Compounding the problem is that nearly half of private-sector employees ages 18 to 64, or 57 million Americans, don’t take part in a retirement plan at work. For the workers who do have retirement savings, the median balance of their retirement accounts total $40,000.
Saving for retirement needs to be a priority, financial experts say.
“At a time when Americans are facing a growing affordability crisis, we need to recognize that retirement should be part of that conversation,” said Dan Doonan, executive director of the National Institute on Retirement Security. “Most retirement programs today rely on workers saving voluntarily, with the tension between saving and the cost of buying a home, daycare and college creating enormous challenges for the middle class. This research shows the fragility of both the nation’s retirement infrastructure and retirement preparedness for the typical U.S. household.”
Another sobering statistic: Social Security is a primary income source for most U.S. seniors, with roughly two-thirds (67%) relying on it for over half their income. About 27% of older Americans rely on it entirely, with roughly 7.3 million surviving on less than $1,000 a month. In total, Social Security constitutes over 90% of total income for about 25% of beneficiaries.
But a crisis looms: The Social Security Board of Trustees projects that the combined Old-Age and Survivors Insurance and Disability Insurance trust funds will become insolvent by 2033. If Congress does not act, this means that by 2033, the system will only be able to pay approximately 77% to 81% of promised benefits from ongoing tax revenue.
Brandy Stanford, senior financial adviser with Hardy Reed, said the shortage of retirement savings is a serious financial challenge.
“Average account balances fall far below what is required for a secure and comfortable retirement. Many small businesses do not sponsor retirement plans, leaving millions without access to employer‑based savings opportunities,” she said. “At the same time, the shift from traditional pensions to self‑funded plans like 401(k)s has placed the burden squarely on individuals, and many start saving too late or contribute too little. As a result, the typical American’s retirement savings fall dramatically short of what they will ultimately need.”
Financial advisers all say the same thing: Start saving as early as possible.
Paul Saylors of Saylors Strategic Wealth said every investor is different, but for young workers just getting started, enrolling in a company 401(k) plan or opening a personal IRA is important.
“Put in what you can, that would be the first and most important thing,” he said. “But just be in the market, so you can get in the habit of investing and just not have to worry about your future.”
Historically, the U.S. stock market (S&P 500) has averaged an annual return of roughly 10%.
“I like to emphasize a simple but powerful principle: time in the market beats timing the market,” said Stanford. “For example, consistently investing $200 per month for 40 years—from age 25 to 65—at a 10% annual return would grow to a nest egg of $1.2 million. Starting just 10 years later, contributing the same $200 per month for 30 years at the same return, would yield only $452,000. This is a reminder that retirement is empty unless you fill it up.”
Saylors said investment strategy also changes as individuals get older.
“In your 20s and 30s, you have a lot more time to overcome downturns in the market,” he said. “So, when you’re younger, you can be more aggressive, which means taking more risk, but with risk comes reward. But as you get older, and into your 50s and 60s, you would want to speak with your adviser and have a plan on getting a little more balanced and a little more conservative. Then toward your later years of life, and into your retirement, you would definitely want to be safer and more conservative where you would have as much chance to lose your money.”
The Trump administration, and what it says is an initiative to build long-term wealth for children, has introduced Trump Accounts. Under the 2025 One Big Beautiful Bill Act, the accounts were created as new tax-advantaged investment accounts for U.S. citizen children born between Jan. 1, 2025, and Dec. 31, 2028. They start with a $1,000 government-funded deposit, allow up to $5,000 in annual contributions, and are intended for long-term growth.
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It’s never too late to save for retirement, but Saylors again emphasized an early start.
“Financial peace of mind is about having the freedom to make choices later in life rather than being forced into them,” he said.
Projections suggest initial, untouched investments could grow significantly by adulthood. The U.S. Department of the Treasury has noted that these accounts can also be used for qualified expenses like college or a first home, with penalty-free access for non-qualified expenses after age 59.5.
Trump Account earnings grow tax-deferred, which means no taxes are owed while the money remains in the account.
Photo credit: DNY59/iStock
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© 2026 the Northeast Mississippi Daily Journal (Tupelo, Miss.). Visit www.djournal.com. Distributed by Tribune Content Agency LLC.
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