Picture this: You’ve saved diligently for years, but inflation and unexpected costs leave you short of the $1.46 million needed for a comfortable retirement.
For most Americans, this “retirement savings gap” is a harsh reality—58% of Americans feel behind, with median savings at just $88,000. At Davenport & Associates, we bridge this gap with personalized strategies.
What is the retirement savings gap in 2026? It’s the difference between what you’ve saved and what you need, widened by economic pressures. This article explores why 58% lag and how to close it.
How can you overcome the gap? Read on for actionable steps to secure your future.
What causes the retirement savings gap? Inflation at 2.8% erodes purchasing power, while market volatility and rising healthcare costs (up 5.4%) strain budgets.
A recent October 2025 report shows 58% of Americans behind, with only 42% confident in their savings. Younger pre-retirees (50–60) cite stagnant wages, while retirees face longevity risks—living 20–30 years post-retirement.
How much do you need in 2026? Experts recommend $1.46 million for a $60,000 annual income, yet the average is $88,000.
Why does the gap matter? It threatens emotional readiness, with 70% of unplanned retirees fearing outliving savings. Without action, heirs inherit less due to depleted assets or forced withdrawals.
For aging Americans, it risks Medicaid eligibility or tax hits on IRAs. Closing the gap preserves your legacy, ensuring tax-efficient transfers via trusts.
How to bridge the gap in 2026? Maximize catch-up contributions to IRAs ($7,000 limit) and Roth conversions for tax-free growth. Diversify with annuities for guaranteed income, and review trusts to protect assets from taxes. Delay Social Security to age 70 for 8% higher benefits. Our holistic plans integrate these, saving clients thousands.
2026 Retirement Savings Gap: Stats vs. Solutions
| Statistic | Reality | Solution |
|---|---|---|
| 58% Behind | Median savings $88K vs. $1.46M needed | Catch-up IRA contributions |
| Inflation 2.8% | Erodes $50K to $68K in 10 years | Roth conversions, annuities |
| Healthcare Up 5.4% | Drains 15% of retirement funds | HSAs, trusts for asset protection |
| 70% Unplanned Retirees | Risk outliving savings | Personalized MoneyGuidePro reviews |
Can you close the gap if you’re behind? Yes—start with a free review to identify quick wins like Roth rollovers. How do trusts help? They minimize taxes on inheritance, preserving more for heirs. With 30+ years of expertise, we make it simple.
The 2026 retirement savings gap affects 58% of Americans, but it’s closable with the right plan. Don’t join the 70% without strategies. Ready to secure your retirement? Schedule a free consultation below to bridge your gap.
John F. Davenport, founder of J. Davenport Advisors and Davenport & Associates in Norwalk, CT, is a licensed attorney in New York and Connecticut with more than 30 years of experience as a financial advisor and investment advisor. He specializes in helping Americans maximize retirement income, explore tax-efficient strategies, implement in-plan annuity and hybrid solutions, and build lasting legacies for their heirs through thoughtful wealth planning.