Currently, pension savings are not used for estate valuations when calculating IHT charges when someone dies. This means money left in a pension can be passed on without worrying about generating a tax bill. But from the new tax year in April 2027, pensions will be included in estate calculations. This creates a higher chance of pushing the value of an estate above the IHT threshold, currently 325,000.
Next year, my administration will give these often forgotten American workers, great people, the people that built our country, access to the same type of retirement plan offered to every federal worker. We will match your contribution with up to $1,000 each year, as we ensure that all Americans can profit from a rising stock market.
We've spent the last decade watching 401(k) balances climb to record highs, celebrating the occasional millionaire milestone, and nodding along to retirement calculators that promise everything will work out fine. But here's the part nobody wants to say out loud: a significant portion of Americans over 50 have less than $50,000 saved for retirement. Not $500,000. Not even $100,000. Fifty thousand dollars.
Nearly nine in 10 higher-risk pension funds have failed to match the performance of the FTSE 100 over the past five years, according to new analysis that raises fresh concerns about retirement outcomes for millions of savers. Research by Investing Insiders examined almost 13,000 personal and workplace pension funds holding more than £1tn in assets between December 31, 2020 and December 31, 2025. Funds in the medium-high and high-risk categories were benchmarked against the FTSE 100 over the same period.
In Allianz Life's Q4 2025 Quarterly Market Perceptions Study, 51% of respondents said they had stopped or reduced retirement savings in the previous six months because of economic conditions. Nearly as many (47%) said they had withdrawn money from retirement accounts during that period. Payroll Integrations' 2025 Employee Financial Wellness Report uncovered similar behavior, with 38% of respondents saying they had tapped retirement savings. About one-third plan to do so again within the next year to cover emergency or everyday expenses.
Financially, the American dream should not be homeownership, but should be financial independence, Robert Johnson, CEO of Economic Index Associates and a professor at Creighton University, said in the report. People fall prey to the stories of individuals realizing substantial gains by buying a home and selling it at a much higher price years down the road. He noted that nearly 29% of household wealth was tied to home equity in 2021, according to U.S. Census Bureau data.
The entrepreneur said that within just a few years, we will live in a world marked by a great surplus, where "better medical care than anyone has today" will be "available for everyone within five years." He also said that there will be "no scarcity of goods and services" and you'll be able to learn anything you want. Musk continued, explaining that there will be such a surplus that life will no longer require people to save in order to ensure they are taken care of later on.
Musk envisions a future of unprecedented productivity, where advances in artificial intelligence, energy and robotics produce economic abundance and even a so-called universal high income that might make long-term savings unnecessary, Business Insider reported. The good future is anyone can have whatever stuff they want, Musk said. That would mean better medical care than anyone has today, available for everyone within five years.
Assuming that you follow the 4% rule, which is a common method of deciding on a safe withdrawal rate, you would be able to access 4% of your $250K in year one of retirement and then adjust up for inflation - and you could do this without running a huge risk of draining your accounts. This would mean you'd have around $10,000 in income from your retirement investment accounts.
But still, if you're retiring with $3 million, you're clearly well ahead of your peers. A $3 million nest egg gives you the leeway to spend money on the things you've always wanted to do - especially if you're also getting a generous monthly Social Security check. Still, a $3 million nest egg needs to be managed carefully. You don't want to blow that money or risk running out of savings in your lifetime.
According to the Employee Benefit Research Institute , more than 50% of Americans have less than $10,000 saved for retirement. This is a big concern, especially considering how shocking it is that a much smaller number have more than $500,000 tucked away for retirement. When you look at the data breakdown provided by the research, there is no question that it will shock people of all income and savings levels.
I think it's worth starting with a few assumptions people make and treat like they're facts. Just because some guy on the internet, or your dad, or even me, your trusted Money Changes Everything writer says something with confidence does not make it a universal fact. Unfortunately, you have to interrogate the platitude, compare it to your actual life, then decide whether it applies to you at all. One person's platitude is another person's bullshit.
Life expectancy is high; if you retire at 65, you're going to need to fund potentially decades of living expenses. A great many people underestimate how much they need to accumulate in a 401(k) or an IRA to fund a retirement of that length. People also tend to have smaller families and fewer people to rely on. But there's also a challenge that comes from the complexity of the financial system itself.
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
But you still have plenty of time to make up for it, especially if you're under 40. In fact, one of the top ways most Americans become millionaires by retirement is by consistently contributing to retirement accounts. According to a Fidelity survey, for example, there are more 401(k) millionaires on its platform than ever before.
What if your parents have no retirement savings? This is an issue that a Reddit user is currently dealing with. His parents are Baby Boomers who, he says, exhausted their funds five years ago - although they only told him when they were on the brink of homelessness. Because of health problems and age-related constraints that make work impossible, the user stepped in to support them and to manage their finances.
