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40% of workers are behind on retirement savings. How to catch up

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2 years ago

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Molly Richardson, 35, regularly contributes to her 401(k) plan, but the structural engineer says she isn’t too worried about retirement yet.

“It’s always something I felt like I could wait until I’m 50 to figure out,” she said.

Like many other working adults, Richardson says she has more pressing expenses for now, such as the mortgage on her home in Jacksonville, Florida, car loans and student debt.

Still, the married mother of one admits she doesn’t have a clear savings goal once those other financial obstacles are out of the way.

“It’s hard to estimate how much we are actually going to need,” she said. “There are question marks.”

44% of workers are 'cautiously optimistic' about retirement goals, CNBC poll finds

In fact, 4 in 10 American workers — 40% — are behind on retirement planning and savings, largely due to debt, insufficient income or getting a late start, according to a new CNBC survey, which polled more than 6,600 U.S. adults in early August.

Older generations closer to retirement age are more likely to regret not saving for retirement early enough, the survey found: 37% of baby boomers between ages 60 and 78 said they felt behind, compared to 26% of Gen Xers, 13% of millennials and only 5% of Gen Zers over the age of 18.

“There are so many individuals, young, mid-career and deep into their career, that are not saving enough for a healthy and secure retirement,” said Jacqueline Reeves, the director of retirement plan services at Bryn Mawr Capital Management.

The idea that you could work longer if you didn’t save enough is just not true: Teresa Ghilarducci

By some measures, retirement savers, overall, are doing well.

As of the second quarter of 2024, 401(k) and individual retirement account balances notched the third-highest averages on record and the number of 401(k) millionaires hit an all-time high, helped by better savings behaviors and positive market conditions, according to the latest data from Fidelity Investments, the nation’s largest provider of 401(k) savings plans.

The average 401(k) contribution rate, including employer and employee contributions, now stands at 14.2%, just below Fidelity’s suggested savings rate of 15%.

And yet, there is still a gap between what savers are putting away and what they will need once they retire.

Although many employees with a workplace plan contribute just enough to take advantage of an employer match, “9% [considering a typical 5% savings rate and 4% match] mathematically speaking, will not provide enough in that piggy bank,” Reeves said.

“They call it a ‘standard safe harbor match‘ for a reason,” she added. “Further in our career, we should be saving 15% to 20%.”

I don’t think you ever feel completely caught up.

Lisa Cutter

Higher education administrator

“I don’t think you ever feel completely caught up,” said Lisa Cutter, 56, from Terre Haute, Indiana.

Cutter, who works as an administrator in higher education, explained that it took a while before she could put anything at all toward long-term savings.

“When I first entered the workforce, I was a classroom teacher and I had no money; I was broke,” Cutter said.

Now Cutter, who is a single mom, has to prioritize her savings. She relies on the retirement tools and calculators that come with her employer-sponsored plan to stay on track.

“I would probably like to retire around 67,” she said.

The retirement savings shortfall

Other reports show that a retirement savings shortfall is weighing heavily on Americans as they approach retirement age.

LiveCareer’s retirement fears survey found that 82% of workers have considered delaying their retirement due to financial reasons, while 92% fear they may need to work longer than originally planned. 

Roughly half of Americans worry that they’ll run out of money when they’re no longer earning a paycheck — and 70% of retirees wish they had started saving earlier, according to another study by Pew Charitable Trusts.

And among middle-class households, only 1 in 5 are very confident they will be able to fully retire with a comfortable lifestyle, according to recent Retirement Outlook of the American Middle Class report by Transamerica Center for Retirement Studies. The middle class is broadly defined as those with an annual household income between $50,000 and $199,999.

“America’s middle class is navigating the turbulent post-pandemic economy and high rates of inflation,” said Catherine Collinson, CEO and president of Transamerica Institute. “They are focused on their health and financial well-being, but many are at risk of not achieving a financially secure retirement.”

Not saving for retirement earlier is great regret

“If you do less at 30, you’ll still have more at 60 than if you did more at 50,” said Bryn Mawr’s Reeves.

More than any other money misstep, 22% of Americans said their biggest financial regret is not saving for retirement early enough, according to another report by Bankrate. 

But there’s no easy way to make up for lost time.

“Inflation and high prices are cited as the biggest obstacle to progress in addressing our financial regrets,’ said Greg McBride, chief financial analyst at Bankrate.com. “Don’t expect an overnight fix.”

There are, however, habits that can help.

How to overcome a savings gap

Saving for retirement can be “automated through payroll deduction, direct deposit and automatic transfers,” McBride said. “Start modestly and after a couple of pay periods, you won’t miss what you don’t see.”

In addition to automatic deferrals, Reeves recommends opting into an auto-escalation feature, if your company offers it, which will automatically boost your savings rate by 1% or 2% each year.

Savers closer to retirement can even turbocharge their nest egg.

“Everybody hits 50 and is like, ‘wait a minute,'” Reeves said, so “there are other opportunities layered on, because many people are caught at that juncture.”

Currently, “catch-up contributions” allow savers 50 and older to funnel an extra $7,500 into 401(k) plans and other retirement plans beyond the $23,000 employee deferral limit for 2024.

It’s also important to create a separate savings account for emergency money, Collinson advised, “which will help you avoid tapping into your retirement account when disaster strikes.”

Similarly, make sure you are properly insured and employable by staying up to date on the latest technology and training, she added, to avoid potential income disruptions.

“The single most important ingredient is access to meaningful employment throughout your working years,” Collinson said.

Most experts recommend meeting with a financial advisor to shore up a long-term plan. There’s also free help available through the National Foundation for Credit Counseling.  

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$20,000 Caution Bond Requirement for US Visa Applications imposed on 50 Countries

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7 days ago

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August 8, 2026

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The United States Department of State has officially implemented a revised visa policy introducing a mandatory posting requirement for caution payments of up to $20,000 on select foreign travel applications. Under the updated regulatory framework, consular officials are authorized to require temporary nonimmigrant visa applicants from targeted foreign countries to post a refundable financial bond of $20,000 as a condition for visa issuance. The policy mechanism is designed to address diplomatic concerns regarding high overstay rates among temporary visitor, business, and educational visa categories.

The caution bond pilot program applies selectively to foreign nationals from designated countries whose diplomatic entities record historical visa overstay rates exceeding established federal thresholds. Under administrative guidelines published by the State Department, the full financial deposit is posted directly to a dedicated federal escrow account prior to final visa issuance. The entire caution payment is automatically refunded to the applicant upon verified proof of timely departure from the United States in strict compliance with the authorized duration of stay. Conversely, failure to depart within the legal timeframe results in full forfeiture of the posted financial bond to the United States government.

Diplomatic representatives and travel policy experts have expressed varying perspectives regarding the operational implementation of the caution bond system. Administration officials emphasize that the measure serves as an effective, market-based incentive to enforce international travel compliance and preserve domestic immigration security standards. However, international trade organizations and foreign diplomatic missions have raised concerns regarding the financial burden imposed on legitimate business travelers, foreign students, and commercial partners from developing nations.

The United States finalized the rule to make the temporary visa bond program permanent, taking effect on August 3, 2026. The updated permanent regulation replaces the prior 12-month pilot, eliminates the lowest $5,000 tier, and raises the maximum required bond amount to $20,000 for specific B-1/B-2 business and tourist visa applicants.

Here is the list of the 50 countries on the list as o August 3, 2026

African Nations (31 Countries)

  • Algeria
  • Angola
  • Benin
  • Botswana
  • Burundi
  • Cabo Verde (Cape Verde)
  • Central African Republic
  • Côte d’Ivoire (Ivory Coast)
  • Djibouti
  • Ethiopia
  • Gabon
  • The Gambia
  • Ghana
  • Guinea
  • Guinea-Bissau
  • Lesotho
  • Malawi
  • Mauritania
  • Mauritius
  • Mozambique
  • Namibia
  • Nigeria
  • São Tomé and Príncipe
  • Senegal
  • Seychelles
  • Tanzania
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe

Asian & Eastern European Nations (11 Countries)

  • Bangladesh
  • Bhutan
  • Cambodia
  • Georgia
  • Kyrgyzstan
  • Mongolia
  • Nepal
  • Papua New Guinea
  • Tajikistan
  • Turkmenistan
  • Uzbekistan

Caribbean & Latin American Nations (5 Countries)

  • Antigua and Barbuda
  • Cuba
  • Dominica
  • Grenada
  • Venezuela

Oceanian Nations (3 Countries)

  • Fiji
  • Tonga
  • Vanuatu

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Next-Generation Retirement Planning: Managing Longevity Risk and Variable Income Streams

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1 week ago

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August 7, 2026

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Retirement planning strategies are evolving in 2026 to address increased life expectancies, shifting dynamic market conditions, and the transition away from traditional defined-benefit pensions. Individual investors and financial advisors are abandoning rigid retirement models in favor of flexible, multi-asset strategies designed to mitigate longevity risk and preserve purchasing power over multi-decade retirement horizons.

Mitigating Longevity Risk with Dynamic Asset Allocation
As average life expectancies extend past eighty-five years, one of the primary financial risks facing retirees is outliving their accumulated wealth. Traditional fixed income allocations—such as the standard 60/40 equity-to-bond portfolio—are being reevaluated to ensure portfolios generate sufficient capital growth alongside reliable income.

Financial planners recommend maintaining a meaningful equity allocation throughout retirement to offset long-term inflation erosion. High-dividend equity funds, global real estate investment trusts (REITs), and inflation-indexed Treasuries are combined to create diversified portfolios that deliver both growth and income stability.

The Transition to Dynamic Withdrawal Strategies
The classic “4% safe withdrawal rule” is increasingly replaced by dynamic withdrawal strategies that adapt annually based on market performance. Under a dynamic withdrawal framework, retirees adjust their annual distribution rates within pre-set caps and floors:
– Market Upside: During strong market returns, retirees can increase discretionary spending or fund family legacy gifts.
– Market Downturns: During market pullbacks, spending distributions are temporarily reduced to prevent sequence-of-returns risk and preserve core investment principal.

Guaranteed Lifetime Income Options and Deferred Annuities
To establish a guaranteed baseline for essential living expenses, individuals are incorporating modern fixed-indexed and deferred longevity annuities into their broader retirement architectures. Modern annuity structures offer competitive return caps, transparent fee schedules, and inflation-adjustment options.

By funding essential expenses—such as housing, healthcare, and insurance—with guaranteed income streams from Social Security, pensions, and annuities, retirees can manage discretionary investment portfolios with greater flexibility and lower emotional stress during market volatility.

Actionable Steps for Future Retirees
1. Calculate Baseline Retirement Expenses: Determine fixed living costs and map guaranteed income sources to cover essential expenditures.
2. Adopt Flexible Withdrawal Rules: Implement dynamic spending rules to protect investment principal against market downturns.
3. Incorporate Inflation-Protected Assets: Maintain exposure to dividend-growing equities and inflation-indexed bonds to safeguard long-term purchasing power.

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Building Generational Wealth: Family Governance, Estate Tax Optimization, and Asset Protection

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2 weeks ago

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August 1, 2026

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As the largest intergenerational transfer of wealth in history accelerates, high-net-worth families, entrepreneurs, and individual investors are placing heightened emphasis on comprehensive estate planning, family governance, and asset protection. Preserving capital across generations requires a balanced approach combining tax-efficient legal structures with open family communication and financial literacy education.

Optimizing Estate Tax Exemptions and Trust Structures
With potential modifications to federal estate tax exemption thresholds on the horizon, proactive estate planning is essential for high-net-worth households. Estate planning attorneys and wealth advisors are establishing multi-generational trust structures to transfer wealth efficiently while minimizing estate and gift tax exposure.

Popular structural strategies include:
– Irrevocable Life Insurance Trusts (ILITs): Utilizing life insurance proceeds to provide liquidity for estate tax obligations without expanding the taxable estate.
– Grantor Retained Annuity Trusts (GRATs): Transferring rapidly appreciating assets to beneficiaries with minimal gift tax consequences.
– Dynasty Trusts: Preserving wealth across multiple generations while providing long-term asset protection from creditor claims and legal liabilities.

Establishing Family Governance and Financial Education
Legal and financial structures alone cannot guarantee long-term wealth preservation without effective family governance. Financial advisors report that a significant percentage of multi-generational wealth dissipation stems from lack of communication and inadequate financial preparation among heir generations.

Families are establishing formal family governance frameworks, including periodic family meetings, written mission statements, and structured philanthropic foundations. Involving younger family members in charitable grant-making and investment discussions fosters financial stewardship and prepares heirs to manage family assets responsibly.

Digital Asset Custody and Legacy Planning
In today’s modern economy, estate planning must extend beyond physical real estate and traditional brokerage accounts to encompass digital assets. Comprehensive estate plans now include detailed inventories and legal access protocols for corporate domain names, intellectual property, digital media rights, and cryptocurrency holdings.

Fiduciaries and estate executors should be provided with secure, encrypted access mechanisms and clear legal authority to manage and transfer digital holdings in accordance with the owner’s estate directions.

Practical Steps for Legacy Planning
1. Review and Update Estate Documents: Ensure wills, revocable trusts, and power-of-attorney designations accurately reflect current family structures.
2. Establish Structured Trusts: Utilize irrevocable trusts to protect assets from creditors and minimize future estate tax liabilities.
3. Create a Digital Estate Inventory: Document access protocols and legal permissions for all online accounts, intellectual property, and digital assets.

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