A distant view shows a mountainous landscape with sloping peaks, green trees in the foreground, and a cloudy sky above.

New research highlights the importance of reliable retirement income as American workers are increasingly concerned about their retirement security.



October is National Retirement Security Month, and according to a report from the National Institute on Retirement Security (NIRS), a large and growing majority of adults say the country is facing a retirement crisis as workers struggle to save money while also meeting other financial obligations.



<h2 class="wp-block-heading">Americans’ Views on Retirement</h2>



NIRS researchers collected data from online interviews of 1,203 American adults who were at least 25 years old and found that 80% believe the country is facing a retirement crisis, up from 67% who said the same in 2020. In addition, 61% said they’re concerned they won’t achieve financial security in retirement, up from 55% in 2020.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="606" src="https://content.copera.org/wp-content/uploads/2026/10/nirs-retirement-crisis-1024x606.png" alt="Bar chart showing increasing percentages of Americans who agree the U.S. faces a retirement crisis: 67% in 2020, 79% in 2023, and 80% in 2025, split by agreement level." class="wp-image-67469" srcset="https://content.copera.org/wp-content/uploads/2026/10/nirs-retirement-crisis-1024x606.png 1024w, https://content.copera.org/wp-content/uploads/2026/10/nirs-retirement-crisis-300x178.png 300w, https://content.copera.org/wp-content/uploads/2026/10/nirs-retirement-crisis-768x455.png 768w, https://content.copera.org/wp-content/uploads/2026/10/nirs-retirement-crisis.png 1220w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Image credit: National Institute on Retirement Security</figcaption></figure>



There are a multitude of reasons why study participants expressed such pessimistic views. Economic conditions are a major influence, with majorities citing both inflation and market volatility as key factors contributing to their concerns about retirement security. In addition, more than three-quarters of Americans are worried about the potential of Social Security benefit cuts in the future if Congress doesn’t take action.



RELATED: <a href="https://www.copera.org/pera-on-the-issues/the-latest-on-social-securitys-finances-and-future">The Latest on Social Security’s Finances and Future</a>



<h2 class="wp-block-heading">The Challenge of Saving on Your Own</h2>



As access to defined benefit pension plans has decreased—only 15% of private-sector workers had access to one in 2023, according to NIRS—many workers face the challenge of figuring out how to save enough money for retirement on their own.



Study participants said it’s increasingly difficult to do so while juggling a variety of competing financial priorities. Top obstacles include debt, housing, emergency expenses, healthcare, and childcare costs.



NIRS said many workers also lack the financial know-how necessary to build a nest egg large enough to meet their retirement goals. When asked how much retirement income a theoretical $100,000 savings balance would produce, half of the study participants were overly optimistic and believed they would be able to draw $10,000 or more annually from that balance, according to the researchers.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="788" height="1024" src="https://content.copera.org/wp-content/uploads/2026/10/nirs-overly-optimistic-788x1024.png" alt="Bar chart showing survey responses about expected annual retirement withdrawals from $100,000 in savings. 9% expect to withdraw near 4%. 50% have overly optimistic expectations over $10,000." class="wp-image-67468" srcset="https://content.copera.org/wp-content/uploads/2026/10/nirs-overly-optimistic-788x1024.png 788w, https://content.copera.org/wp-content/uploads/2026/10/nirs-overly-optimistic-231x300.png 231w, https://content.copera.org/wp-content/uploads/2026/10/nirs-overly-optimistic-768x998.png 768w, https://content.copera.org/wp-content/uploads/2026/10/nirs-overly-optimistic-1182x1536.png 1182w, https://content.copera.org/wp-content/uploads/2026/10/nirs-overly-optimistic.png 1220w" sizes="auto, (max-width: 788px) 100vw, 788px" /><figcaption class="wp-element-caption">Image credit: National Institute on Retirement Security</figcaption></figure>



<h2 class="wp-block-heading">The Role of Pensions in Providing Retirement Security</h2>



A defined benefit pension plan has the benefit of helping take the guesswork out of planning for retirement. For most Colorado PERA members, enrollment in the PERA Defined Benefit Plan is automatic and their contributions to the plan are set in statute. That means employees don’t have to opt in or decide how much to save. And when they retire, PERA members can count on receiving reliable and predictable monthly income they can’t outlive.



NIRS found strong support for pensions, with 76% of study participants expressing favorable views. A similar percentage said retirement benefits are a very important factor when considering job opportunities.



On a local level, a 2025 study found that 81% of State of Colorado employees said retirement benefits were a factor in their decision to work for the State and 83% cited retirement benefits as a factor in their decision to remain in State employment.



READ MORE: <a href="https://copera.org/pera-on-the-issues/study-confirms-pera-a-valuable-tool-for-recruiting-retaining-public-workers">Study Confirms PERA a Valuable Tool for Recruiting, Retaining Public Workers</a>



In addition to a defined benefit plan, Colorado PERA also offers all members access to the voluntary PERAPlus 401(k) and some employers offer the PERAPlus 457 Plan,&nbsp;<a href="https://www.copera.org/retirees/peraplus-401-k-457-plans">providing members with additional tools</a>&nbsp;to ensure they have the savings they need to meet their retirement goals. And beginning in 2027, all PERA members will have access to the PERAPlus 457 Plan as well as Roth options for both the 401(k) and 457 Plan.



As a growing percentage of American workers express concern about achieving retirement security, PERA is proud to provide stable and reliable retirement income to the more than 730,000 current and former public employees who serve our state.

A woman with short gray hair sits at a table, looking at a laptop with a thoughtful expression. A person walks by in the background inside a modern office space.

Survey: Americans Increasingly Pessimistic About Retirement Security