Americans say they need $2 million to retire; but most have less than $150,000 saved, BlackRock CEO warns
Larry Fink has a blunt message for Americans: most people simply have not saved enough for retirement.
In his 2025 annual shareholders letter, the BlackRock chief executive warned that the gap between what Americans believe they need and what they actually have saved is enormous. BlackRock, the world’s largest asset manager with roughly $14 trillion in assets under management, surveyed 1,000 registered voters about retirement expectations and preparedness.
The results revealed a growing disconnect between retirement dreams and financial reality.
Americans think they need $2.1 million to retire comfortably
In BlackRock’s survey, respondents estimated they would need an average of about $2.1 million to retire comfortably.
“That’s a lot. More than I was expecting,” Fink wrote.
The number reflects rising costs for housing, healthcare, and daily living expenses, as well as longer life expectancies that require retirement savings to stretch further than in previous generations.
Despite the $2.1 million estimate, the survey found that most Americans are nowhere close to that level of savings.
About 62% of respondents reported having less than $150,000 saved for retirement. That figure amounts to only about 7% of the amount they believe is necessary for a comfortable retirement.
Fink summarized the problem bluntly: “almost no one is close.”
Rising costs in retirement add to the financial strain
The challenge of saving enough for retirement is compounded by the high cost of living during retirement years, particularly healthcare and long-term care.
“When you’re retired, you’re basically living on a fixed income,” Rita Choula, senior director of caregiving with the AARP Public Policy Institute, previously told Fortune. “If you have not factored in an additional $7,000, $8,000, $9,000 a year for your fixed income, that can have a big impact.”
These added expenses can quickly erode retirement savings, making financial planning even more critical.
The shift from pensions to 401(k)s has changed retirement planning
Fink argues that the modern retirement system has shifted too much responsibility onto individual workers.
Traditional pensions once guaranteed income for retirees, but most private-sector workers now rely primarily on defined-contribution plans such as 401(k)s. While these plans allow workers to invest and grow savings, they also require individuals to manage complex financial decisions.
Because 401(k)s do not provide clear guidance on how to spend retirement savings, many retirees struggle to determine how much they can safely withdraw over time.
Gen X could face an even tougher retirement reality
According to Fink, the retirement challenge may intensify as Generation X begins leaving the workforce.
“The problem will only get harder and nastier as the oldest Gen-Xers start to retire,” he argued. “They’re the first generation primarily dependent on 401(k)s. And the 401(k) trend is growing with Millennials and Gen Z.”
Without traditional pension systems, these generations must rely heavily on personal savings and investment decisions to fund their retirement.
Ironically, many retirees who manage to save substantial amounts still struggle financially; not because they run out of money, but because they are afraid to spend it.
“The result? Even retirees who’ve saved well often spend too little, gripped by fear that they’ll run out. They downsize dreams and delay joy,” Fink wrote. “The economist Bill Sharpe called this problem the ‘nastiest, hardest problem in finance.’ Hard, but solvable.”
This uncertainty highlights the difficulty of converting a lump sum of savings into a reliable lifelong income.
Data suggests retirement insecurity is widespread
Research from the Federal Reserve System supports Fink’s warning about the growing retirement crisis.
Roughly half of U.S. households approaching retirement age; those in their 50s and 60s; have no money saved in a 401(k) or IRA.
As a result, many Americans will rely heavily on Social Security Administration benefits to fund their retirement years.
Social Security faces long-term financial pressure
However, reliance on Social Security comes with its own uncertainties.
Monthly Social Security payments average around $2,000, and the program’s trust fund is projected to be depleted by the mid-2030s. Without action from Congress, benefits could be reduced by roughly 20% to 25%.
According to the Social Security Trustees, the country will need to make major decisions about the future of the program, including how it is funded, how generous benefits should be, and when workers can begin collecting them.
The rise of ‘unretirement’ is reshaping the workforce
For many Americans, retirement is no longer a permanent exit from the workforce.
An increasing number of retirees are returning to work in a trend known as “unretirement.” By late 2024, about 20% to 25% of retirees were working either part- or full-time jobs, while another 7% were actively seeking employment, according to policy experts speaking at the 2025 legislative summit hosted by the National Conference of State Legislatures.
Higher living costs are the primary reason retirees return to work, although some also seek social interaction or a renewed sense of purpose.
Experts say older workers are increasingly valuable to employers as demographic changes reshape the labor market.
AARP vice president Carly Roszkowski says older employees bring experience, professionalism, and strong mentorship abilities to organizations.
The role of older workers is becoming even more important as the population ages. By 2032, adults aged 65 and older are expected to outnumber people under 18 in the United States for the first time in history.
Roszkowski notes that workers age 50 and older already contribute roughly $8.3 trillion annually to the U.S. economy; a figure projected to rise dramatically in the coming decades.
As Americans live longer and retirement savings fall short, the traditional idea of retirement may continue to evolve into a more flexible, multigenerational workforce model.
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Rising interest rates have disrupted many retirement portfolios, causing bond fund values to plummet. In this volatile financial landscape, Social Security can stabilize a typical stock-bond retirement portfolio. By implementing smart strategies, retirees can maximize their Social Security benefits and ensure a more secure financial future.
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Deciding when to claim Social Security is often about maximizing your benefit. Financial planners usually advise delaying your claim for as long as possible to secure the highest monthly payment. Your benefit is based on your lifetime earnings, with a full payout available at your full retirement age (FRA), which is currently between 66 and 67 depending on your birth year. Claiming before FRA results in a permanent reduction in your monthly benefit, while waiting beyond FRA leads to a permanent increase. However, the decision isn’t solely about maximizing the monthly check. Personal factors such as health, family circumstances, and financial needs can play a significant role in determining the right time to claim.
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John Dealbreuin came from a third world country to the US with only $1,000 not knowing anyone; guided by an immigrant dream. In 12 years, he achieved his retirement number.
He started Financial Freedom Countdown to help everyone think differently about their financial challenges and live their best lives. John resides in the San Francisco Bay Area enjoying nature trails and weight training.
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Personal Capital: This is a free tool John uses to track his net worth on a regular basis and as a retirement planner. It also alerts him wrt hidden fees and has a budget tracker included.
Platforms like Yieldstreet provide investment options in art, legal, real estate, structured notes, venture capital, etc. They also have fixed-income portfolios spread across multiple asset classes with a single investment with low minimums of $10,000.
