US retirement security faces challenges from solo aging and income gaps

The United States is facing a growing solo aging crisis, with approximately 28% of Americans aged 65 and older living alone. This trend, up from 10% in 1950, means more retirees are entering their later years without a built-in financial or logistical partner. This shift challenges traditional retirement planning models, which typically assume a dual-income household. Solo retirees face heightened sequence of returns risk, as they lack a spouse's income or Social Security to lean on during market downturns.

Financial anxiety regarding retirement is also heavily dictated by income levels rather than age. A survey of 1,000 Americans indicates that those earning less than $25,000 annually are nearly four times more likely to lack confidence in their savings compared to six-figure earners. Furthermore, there is growing skepticism regarding the 401(k) system; many respondents believe the plan works more effectively for higher earners. With only about 14% of private-sector workers having access to pension benefits as of March 2025, the 401(k) remains the primary retirement vehicle for most, despite these perceived inequities.