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Warning sign? Retirement saving habits eroding, payroll firm says

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by Michael Ramsey - 04/03/26 10:51 PM ET

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by Michael Ramsey - 04/03/26 10:51 PM ET

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(NewsNation) — The eroding retirement-saving habits among many U.S. workers could be the equivalent of a canary in the coal mine, showing that economic pressures are hitting the middle class hard, a new report suggests.

Payroll firm Dayforce examined data from 2022 through 2025 to glean insights into the way workers are socking money away for their golden years.

Notably, the report said, the retirement savings rate for full-time workers declined to 8.9 percent in 2025 from 9.2 percent in 2024, marking the first annual decrease in three years. Meantime, 26 percent of workers who save for retirement reduced their annual contributions last year.

The declines were greatest among workers earning between $50,000 and $150,000 annually, the report said.

Jason Rahlan, Dayforce’s global head of sustainability and impact, says the U.S. economy has been relatively stable. But the highest earners have tended to benefit, he added.

“At the same time, the costs of utilities, housing, and everyday expenses remain elevated, and millions of workers and their families continue to face affordability challenges,” he said.

The Dayforce study offered positive news about Generation Z, the newest wave of U.S. workers. The demographic includes people who were born between 1997 and 2012.

Over the past three years, Gen Z members in the workforce have shown the greatest gains of any generation in their participation, savings rates and contributions.

Between 2022 and 2025, the rate of participation for Gen Z workers rose to 69.5 percent from 63.4 percent, the study said. The Gen Z savings rate rose to 6.2 percent from 4.5 percent, as the annual contribution increased to $3,119 from $1,952.

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