Employer-sponsored retirement plans aren’t just helpful; they can be the difference between Americans who can retire and those who cannot. Currently 59 million Americans don’t have access to a workplace retirement plan, representing roughly half of all working Americans. Bridging the gap between those with and without access to these plans is not only an economic imperative but a moral one.
TIAA is encouraged by the Administration’s focus on retirement access, including remarks made by President Trump at the State of the Union, and we look forward to details about the president’s proposal to increase retirement savings access for those workers currently lacking access to a workplace sponsored plan. We believe any solution should include features that are key to a secure retirement, including access to lifetime income investment options that protect retirees from the risk of outliving their savings.
Here’s a list of the top 5 reasons with data from TIAA’s 2025 American Retirement Confidence Survey that shows why expanding access to retirement savings plans is crucial:
1. Expanding access makes retirement achievable for everyone
Employed Americans with access to workplace retirement plans are twice as likely to believe retiring at a traditional age is realistic (41%) compared to those without employer plans (20%). This isn’t just a gap; it’s a chasm that determines whether millions of Americans can ever afford to stop working. Bridging this divide means making retirement achievable for everyone, not just those fortunate enough to work for employers offering these benefits.
2. Without employer plans, half of Americans abandon retirement saving entirely
Employer plans don’t just help people save more; they help people save at all. 76% of Americans with access to plans prioritize retirement saving or balance it with current spending, versus just 52% of those without access to employer plans. Even more shocking: 48% of those without employer-sponsored plans don’t even think about saving, compared to only 24% of those with access to plans. Expanding access to these structural supports could transform retirement outcomes for the nearly half of Americans currently left behind.
3. Improves retirement confidence
Access to employer-sponsored plans creates a 26-percentage-point confidence gap. While 78% of workers with access to employer plans feel confident about retiring on time, only 52% of those without access share that confidence. This isn’t merely psychological; it reflects real differences in financial preparedness. Bridging this gap means giving millions of Americans the structural foundation they need to believe retirement is possible, transforming that belief into reality through automatic enrollment and employer contributions.
4. Employer plans eliminate retirement savings paralysis
One in five Americans (21%) aren’t currently saving for retirement, with 5% having no plans to start. Among those without access to plans, 21% don’t even know where their retirement income will come from. This paralysis disproportionately affects those without employer-sponsored plans, who lack the automatic enrollment that bypasses decision fatigue and complexity. Expanding access to workplace retirement plans would automatically enroll millions who currently face seemingly insurmountable barriers to getting started, closing the massive gap between good intentions and actual saving behavior.
5. Employer sponsored retirement savings plans level the playing field
Only 35% Americans without access to plans view employer-sponsored plans as a reasonable retirement strategy versus 64% of employed workers—not because the strategy doesn’t work, but because they lack access to it. Employer-sponsored plans with automatic enrollment and matching contributions provide a proven pathway to retirement security that doesn’t depend on high income, financial literacy, or heroic willpower. Extending these plans to more workers, including gig workers, part-timers, and those at small businesses, is essential to closing America’s retirement readiness gap.
The bottom line: Equity is imperative
Retirement security in America is increasingly determined by employment status and access to workplace benefits rather than by personal responsibility or work ethic. Those without employer-sponsored plans face multiple compounding disadvantages: lower confidence (52% vs. 78%), less knowledge about retirement options (41% vs. 20% lack confidence), lower participation in financial planning (74% vs. 42% have never consulted an advisor), and dramatically reduced likelihood of ever retiring on time (20% vs. 41%).
SEE ALSO:
• Trump Floats New Retirement Plan for Workers Without 401(k)s
• Bold Reforms Needed to Close ‘Guarantee Gap’ Jeopardizing Retirement
• Americans Without Access to Workplace Plan Probably Not Saving at All
• Industry Groups Respond to Trump’s Retirement Plan for Workers Lacking 401(k)
• Employees Link Retirement Plan Accessibility as Top Reason for Participating