A recent study from the Institutional Retirement Income Council (IRIC) has brought renewed attention to an issue many plan sponsors are already seeing firsthand: A significant portion of Americans nearing retirement are simply not financially prepared.
According to the research, nearly half of workers aged 55 to 64 have no retirement savings. And for those who do, the median account balance is just $202,000—far below what’s typically needed to fund a secure retirement.
This growing gap in retirement readiness presents challenges not only for employees, but also for employers striving to support their workforce and manage long-term planning.
At Trust Point, we work with organizations every day to strengthen their retirement plans and improve outcomes for participants. And while there’s no single solution, there are several ways employers can help employees close the gap and feel more confident about their future.
The Data Behind the Concern
IRIC’s findings highlight several key areas of concern for employees approaching retirement:
- 46% of workers ages 55–64 have no retirement savings.
- Among those with savings, the median balance is $202,000.
- Only 38% fully understand how and when to claim Social Security benefits.
- Many underestimate healthcare costs, which can total $315,000 or more in retirement.
These financial blind spots can lead to delayed retirements, increased workplace stress, and greater strain on benefit programs—ultimately impacting both employees and employers.
What Employers Can Do to Help
Employers play a key role in guiding employees toward better outcomes. By incorporating a few targeted strategies, plan sponsors can make a meaningful difference:
1. Offer Tailored Education for Near-Retirees
Workshops or communications designed for employees age 50+ can focus on critical topics like retirement income planning, Social Security, RMDs, and Medicare.
2. Highlight Catch-Up Contributions
Ensure older participants are aware of their ability to contribute more—especially with new SECURE 2.0 enhancements coming into effect.
3. Incorporate Healthcare Cost Planning
Support employees in understanding the potential long-term costs of healthcare in retirement—and how they can plan for it now.
4. Provide Retirement Income Planning Tools
Tools that project retirement income, model withdrawal strategies, or help estimate gaps can empower participants to make informed decisions.
5. Encourage Early and Ongoing Engagement
The earlier employees engage with their plan and available resources, the better positioned they’ll be to retire on their own terms.
Creating a More Confident Retirement Journey
We believe a well-designed retirement plan should go beyond compliance—it should give employees clarity, confidence, and control over their financial future. And that starts with thoughtful guidance from a trusted partner. If you’re looking for ways to enhance your retirement plan and better support your employees as they prepare for life after work, our team is here to help. At Trust Point, we take pride in helping organizations build stronger plans—and helping people retire with confidence.
Let’s Talk
Connect with our Retirement Plan Services team to explore personalized strategies for improving participant outcomes and strengthening your plan’s long-term impact.
Sources:
Institutional Retirement Income Council (IRIC), “IRIC Issues Guidance on Helping Near Retirees Prepare for Retirement,” May 27, 2025. plansponsor.com
Employee Benefit Research Institute (EBRI), 2024 Retirement Confidence Survey Highlights.
Fidelity, Health Care Costs for Retirees, 2024 Estimate.
Social Security Administration, Understanding the Benefits, 2024.
