U.S. Economic Inequality

A new analysis by the National Institute on Retirement Security, using U.S. Census Survey of Income and Program Participation data, finds the median working‑age American has just $955 saved for retirement when you include the roughly 56 million workers with no 401(k) or similar plan at all. Among workers who do have retirement accounts, the median balance is only $40,000 — far below the roughly $1.5 million Americans now say they need to retire comfortably and well short of common 'multiple of salary' benchmarks by age. The report links these shortfalls to rising elder poverty, noting the share of seniors living below the poverty line climbed to 15% in 2024, the highest rate of any age group. NIRS warns that Social Security’s projected 20% across‑the‑board benefit cut in 2034, if Congress does nothing, would hit especially hard because so many retirees rely on it for more than half their income. The findings land as the Trump administration rolls out 'Trump Accounts' for children and as policymakers debate options such as raising or broadening payroll taxes, lifting the wage cap (set at $184,500 for 2026), or increasing the retirement age to keep Social Security solvent.