46% of American workers are skipping retirement savings to cover bills — here's the long-term cost

With rising costs — from housing and healthcare to everyday expenses like groceries and gas — many Americans are pulling back on their retirement contributions. Or, they've stopped saving altogether.

NFP's 2026 U.S. Retirement Trend Report shows that 46% of respondents are "deprioritizing or unable to save for retirement" as housing, healthcare and car payments take precedence. And 72% say they're off track in their retirement savings goals.

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As workers contribute less to retirement savings, they're also becoming more dependent on Social Security, with 41% of employees aged 55 and older expecting it will be their primary source of retirement income, according to the NFP report, which was based on a survey of 1,000 working adults in the U.S. NFP, part of Aon Plc, is an insurance and reinsurance broker.

But, with the Social Security trust fund projected to run out by 2032, future retirees may only receive 78% of their scheduled benefits .

So a traditional retirement — where you retire at 65 and have enough money to maintain your current lifestyle throughout your golden years — is becoming increasingly out of reach for many Americans.

It's not the only study of late to come up with similar findings.

According to Schroders' 2026 US Retirement Survey , 27% of U.S. investors said they've decreased contributions to their workplace retirement plan, such as a 401(k), 403(b) or 457 plan — with 70% doing so in the past two years.

Not only are they decreasing contributions, 27% say they've borrowed money from their plan, either to pay down credit card or other debt (36%), cover unforeseen emergencies (31%) or keep up with the cost of living (27%).

Many plan participants believe the rising costs of housing, healthcare, utilities and insurance are putting retirement "out of reach" for their generation. 55% say they can't save 10% of their paycheck for retirement and 33% have more credit card debt than retirement savings.

In another survey, nearly half of Americans said they're skeptical they'll ever be able to fully retire.

"Despite expressing confidence in their ability to retire on time, Americans are prioritizing their financial needs today instead of planning and saving for the future," according to Thrivent's 2026 Retirement Expectations Survey of more than 2,000 Americans.