Two-thirds of Americans are falling behind on their savings goals, with nearly half believing they’ll never catch up in a financial landscape marked by rising costs and economic uncertainty.
At a Glance
- 67% of Americans feel behind on their savings goals, with 47% believing they will never catch up
- 63% of Americans with savings have withdrawn funds this year, with one in five doing so five or more times
- The average American saves about $496 monthly, but 30% save $200 or less
- Gen X reports decreased savings most frequently, while Gen Z is most likely to report increases
America’s Savings Crisis: A Generation-Spanning Challenge
A recent survey has uncovered a troubling financial reality: two-thirds of Americans feel they’re falling behind on their savings goals. This widespread sentiment crosses generational boundaries but affects each age group differently. The research, commissioned by the consumer banking app Current for National Financial Literacy Month, surveyed 2,000 Americans evenly split across generations between March 28 and April 2, 2025.
The findings reveal a stark picture of financial strain, with 47% of respondents believing they will never catch up on their savings. For many Americans over 40, this raises serious concerns about retirement readiness and emergency preparedness. The data shows that 25% of Americans have less money saved now than at the beginning of 2025, indicating a backward slide in financial security for many households.
The Reality of Savings Withdrawals
The survey reveals that 63% of Americans with savings have withdrawn funds this year, with nearly one in five doing so five or more times. These withdrawals often cover unexpected expenses, everyday purchases, emergencies, and housing payments. Rather than viewing this as a failure, financial experts suggest this actually demonstrates that savings are serving their intended purpose – providing a financial cushion when needed.
For adults in their 40s, 50s, and beyond, this frequent tapping into savings creates a concerning cycle that’s difficult to break. Each withdrawal for an unexpected expense means less money growing for retirement or major health expenses later in life. Generational differences are apparent, with Gen X most likely to report decreased savings while younger generations show more optimistic trends.
“Over 60 percent of people have needed to use their savings this year, highlighting exactly why Americans are smart to try and build this financial cushion. Their savings are successfully serving their intended purpose — helping navigate both unexpected costs and ensuring they can maintain their essential needs.” – Erin Bruehl
According to the 2024 Schwab Modern Wealth Survey, only 36% of Americans have a written financial plan.
This number is staggering considering the potential for positive outcomes associated with having a plan in place and regularly reviewing it.
Check out my concrete timing to… pic.twitter.com/0xAQjonzWJ
— Gabriel Gallante (@RocklineWealth) February 19, 2025
The Savings Gap and Financial Institution Choices
The average American saves approximately $496 per month, but nearly a third save $200 or less. This disparity highlights the growing economic divide in America, where some households can build substantial financial cushions while others struggle to set aside even modest amounts. For older adults who may be approaching retirement age with inadequate savings, this gap becomes particularly concerning.
The survey also points to significant differences in how generations view their banking relationships. Seventy-one percent of Gen Z find their bank helpful in reaching savings goals, compared to lower percentages among older generations. This suggests that younger consumers may be benefiting from more modern, digital-first banking approaches that offer features specifically designed to encourage saving.
“Americans should select financial institutions that help them reach their goals. Online or mobile-only solutions often offer higher savings rates than traditional banks without monthly or minimum balance fees and provide additional benefits like early paycheck access and fee-free overdraft protection that provide additional cushion when bills are due. These benefits put more money in consumers’ pockets and can help people achieve their goals faster.” – Erin Bruehl
Building Better Savings Habits
Financial experts recommend several approaches to improve savings outcomes. Setting small, achievable goals can create momentum without feeling overwhelming. Automating transfers to savings accounts removes the willpower barrier that often prevents consistent saving. For adults in midlife and beyond, this automation can be particularly effective as it transforms saving from an active choice into a background habit.
Cutting everyday expenses remains a reliable strategy for finding additional savings capacity. Many Americans are finding that reviewing subscriptions, negotiating bills, and making small lifestyle adjustments can collectively free up significant monthly cash flow. The key is maintaining consistency with whatever saving strategy works for your situation, as financial security is built through steady contributions over time rather than occasional large deposits.
For older adults concerned about catching up on retirement savings, exploring higher-yield savings options becomes increasingly important. The survey findings suggest that online or mobile-only banks frequently offer better rates and fewer fees than traditional brick-and-mortar institutions, potentially helping savers accelerate their progress toward financial goals during their peak earning years.
