Retirement Readiness Holds Steady in Q2
Despite reports of financial capability declines and increased fears over the economic market, a new report suggests that retirement readiness has stayed consistent so far in 2025.
According to IRALOGIX, its Retirement Readiness Index was stable in Q2 at 45.1, down just slightly compared to 45.8 in Q1. An index score below 50 signals a “moderate risk,” IRALOGIX notes, meaning that pre-retirees could have trouble maintaining their standard of living without the proper savings, healthcare planning, and financial confidence needed. Other risk zones are: high risk (0-34.9), caution zone (50-64.9), prepared (65-79.9), and retirement ready (80-100).
Peter de Silva, CEO at IRALOGIX, notes how such inactivity presents an opportunity for advisors to kickstart the planning process with those nearing retirement. “The fact that our Retirement Readiness Index barely moved this quarter shows that many Americans are experiencing inertia when it comes to getting ready for retirement,” said Peter de Silva, CEO of IRALOGIX. “People are feeling the pressure from market ups and downs and an uncertain economy, but too many aren’t taking the steps needed to strengthen their plans. Now is the time to act if Americans want to move from just getting by to building a secure retirement.”
IRALOGIX first launched its Retirement Readiness Index in March 2025 to show how Americans are preparing for the long-term, using data across five areas like Savings and Investments, Healthcare Readiness, Lifestyle and Spending, Emotional Wellbeing, and Economic and Policy Confidence.
Each category is assigned a maximum number of points. These points can then contribute to the overall retirement readiness score.
Where Americans are Struggling
The index found that pre-retirees are struggling with Healthcare Readiness, at 36.7% of potential achieved; Economic and Policy Confidence, at 42% of potential achieved; and Savings and Investments, at 42.3% of potential achieved.
Their pessimism is likely due to ongoing inflation, uncertainty surrounding Social Security, market volatility, and President Donald Trump’s tariff changes, IRALOGIX finds. Further, many continue to lack a clear plan in handling healthcare costs during retirement, from affording long-term expenses to paying unexpected medical bills.
The firm also observes that while some pre-retirees could be saving through a retirement account, many aren’t taking advantage of the tools, likely due to their inability to make ends meet as day-to-day costs soar.
Ultimately, tools like automatic escalation, individual retirement account (IRA) funding, and catch-up contributions can help, but inflation has also made it tougher for participants to increase their contributions.
Where Americans are Improving
Americans are placing emphasis on their emotional state and lifestyle needs for retirement, IRALOGIX finds.
The index reports that a greater number of respondents are working on their Emotional Wellbeing, at 55.9% of potential achieved; and lifestyle and spending; at 48.6% of potential achieved.
While many Americans would say they’re not financially set for retirement yet, more are feeling emotionally prepared for their golden years, adding that strong social ties and hobbies leave them excited for the next chapter.
Others are refining their lifestyle spending to better suit their retirement accounts, IRALOGIX reports. Still, rising costs, potential healthcare spending, and changing income sources highlight the need for a clear spending plan or budget.
“Pre-retirees can’t afford to ignore these gaps. This is where employers and advisors can step up to help people turn good intentions into real plans,” said de Silva. “Emotional optimism is a good start, but it needs to lead to financial readiness if Americans want to retire with security.”
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IRALOGIX Releases Retirement Readiness Index
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.
