Workers Struggle to Prioritize Retirement Savings: Vestwell Survey
Regardless of income, American workers have extremely low confidence in their ability to save and struggle to determine how best to allocate their earnings to emergency savings, credit card debt, student loans, child care, health care, housing and retirement, according to 2026 Saver Survey by Vestwell, released today.
Only 26% of the 1,007 respondents to the survey say they are very confident that they are making the most of their extra paychecks. Nearly two-thirds of workers making $200,000 or more (64%) are hesitant to describe themselves as confident.
“Investors are overwhelmed by the question of what to do first,” said Aaron Shum, founder and CEO Westwell. “Higher pay doesn’t come with instructions. We’re seeing workers at all income levels really not sure if they should be building an emergency fund, paying down debt or maxing out their 401(k) to get a full employer match. These are critical issues that employers and benefits are uniquely positioned to address.”
Recent increases in consumer prices have made saving even more difficult for workers. Almost two-thirds of respondents (63%) say that day-to-day expenses prevent them from saving more for retirement. Even among workers making between $125,000 and $200,000 a year, more than half (51.2%) say that day-to-day expenses are a barrier to saving for retirement. Other concerns include credit card or consumer debt (38%), lack of emergency savings (32%), student loan payments (20%), and child or family care costs (17%).
“Americans compromise their retirement savings at the grocery store, at the doctor’s office and when the credit card bill comes,” Shum said. “Employers should focus on helping workers build their short-term financial bottom line first.”
Emergency savings is now a matter of retirement
One of the most effective conclusions of the survey is the connection between emergency savings and retirement results. Thirty-two percent of respondents say not having an emergency cushion is holding back their retirement contributions. Separately, 37% named an employer-sponsored savings account as the top benefit that would most improve their financial well-being, second only to the benefits of an HSA/FSA (39%).
Employee demand for emergency savings accounts is highest among workers in their 40s (44%), but remains high across all age groups.
When asked to rate a hypothetical tool that automatically directs every dollar of paycheck to a financial goal where it would have the most impact, such as building emergency savings, paying off high-interest debt, maximizing 401(k) matching, etc., 68% of respondents said the concept would be “very” or “extremely valuable.” Among workers who describe themselves as not very confident in their financial decisions, that number jumps to 84%. For workers who say they don’t know where to start, it reaches 94%.
While the appetite is there, Vestwell reports that most employers are not yet meeting the need. Only 12% of respondents currently turn to their employer’s benefits or HR/payroll platform for financial guidance. Instead, workers rely on friends and family (44%), internet or social media searches (36%), a financial advisor (31%) or artificial intelligence tools such as ChatGPT (18%). The sources workers trust also varies across generations, with nearly two-thirds (63%) of workers in their 20s turning to friends and family for financial advice, while more than half (53%) of workers in their 60s rely on financial advisors.
“The fact that more people are using AI and social media for financial guidance than their own employer’s benefits platform shows both an unmet need and an opportunity,” Shum said. “People need help. Unless employers step in to provide reliable resources, workers will continue to make consistent financial decisions from fragmented sources that may not reflect their full picture of preferences, financial priorities or personal circumstances.”
401(k) requirement.
The Vestwell Saver Survey 2026 also found that a 401(k) has become a baseline expectation for future employees. Among respondents, 57% said it was very important and 33% said it was very important, for a combined 90% who consider it a job requirement.
Subtext? Skipping a 401(k) offer will likely cost employers candidates and employees, but simply offering one isn’t enough to win them over. Workers now expect a 401(k) like they expect health insurance.
SEE ALSO:
• 401(k) Members Want the ‘Easy’ Button: JPMAM Survey
• 8 key findings from 2 new studies on emergency savings
• QuickBooks, Vestwell Launch Integrated 401(k) for SMBs
