Americans Remain at ‘Elevated Risk’ for Retirement Readiness: Index

Updated Retirement Readiness Index from IRALOGIX shows improvement, but highlights persistent gaps in resilience, healthcare planning, and long-term preparedness

IRALOGIX today released the 2025 results of its Retirement Readiness Index (IRRI), and while it showed a significant improvement from last year’s inaugural index score of 45.8 out of 100, it’s updated score of 57.7 still places overall retirement readiness for the full year in the Elevated Risk category.

The IRALOGIX Retirement Readiness Index was introduced last year to serve as a national benchmark designed to assess how prepared Americans are for retirement across five critical dimensions: Savings & Investments, Healthcare Readiness, Lifestyle & Spending, Emotional Well-being, and Economic & Policy Confidence.

While many Americans are actively participating in retirement savings plans and remain cautiously optimistic about their future, the results show that readiness remains fragile and vulnerable to disruption.

“A score of 57.7 shows that participation alone is not enough. Many Americans are enrolling and contributing as expected, yet too many are still one unexpected expense, job disruption, or healthcare event away from falling behind. Real readiness requires resilience, thoughtful planning, and protection against financial shocks, not just access to a savings plan,” said Peter de Silva, CEO of IRALOGIX.

Under the calibrated framework of the IRRI, scores in the 40s and 50s reflect Elevated Risk, indicating meaningful engagement with retirement systems but insufficient resilience to withstand disruption.

Key findings from 2025 IRRI

The IRRI measures retirement readiness using a fixed set of 16 core questions that evaluate both financial behaviors and structural preparedness. Results across the five dimensions reveal uneven progress:

• Savings and Investments is the strongest dimension, reflecting broad participation in retirement accounts, though contribution consistency remains uneven.

• Lifestyle and Spending shows moderate strength, suggesting many households manage day-to-day finances but lack confidence in sustaining their lifestyle through retirement.

• Emotional Well-being remains relatively stable, indicating that confidence and outlook have not collapsed despite ongoing economic uncertainty.

• Healthcare Readiness is among the weakest areas, highlighting limited preparation for medical and long-term care costs.

• Economic and Policy Confidence scores lowest, reflecting persistent concern about inflation, economic volatility, and the stability of retirement-related policies.

Rotating questions reveal context

In addition to the core questions used to calculate the IRRI score, the 2025 survey included a small set of rotating questions designed to provide additional context around the financial pressures shaping retirement readiness. IRALOGIX noted that while these findings do not affect the index score, they help explain why readiness remains fragile for many Americans.

• Family financial support is widespread. Nearly six in 10 respondents reported providing financial support to a family member or loved one at some point during 2025, creating additional strain on household finances and limiting the ability to save consistently for retirement.

• Saving during stress remains difficult. A majority of respondents indicated that maintaining retirement contributions during periods of financial stress was challenging, reinforcing the finding that participation alone does not ensure durability.

• Confidence in sustaining lifestyle is uneven. Many respondents expressed uncertainty about their ability to maintain their current lifestyle throughout retirement, suggesting that day-to-day financial stability does not always translate into long-term security.

• Long-term financial confidence remains fragile. A significant share of respondents reported being unsure whether they can maintain financial stability throughout retirement, highlighting persistent anxiety about longevity, healthcare costs, and future expenses.

Together, IRALOGIX said these contextual insights underscore why retirement readiness remains at elevated risk, even as they point to a system where engagement exists, but durability does not.

The Pittsburgh-based fintech retirement provider said the 2025 IRRI establishes a national baseline for retirement readiness, and that future releases of the index will track changes using the same core methodology, while rotating diagnostic modules will explore specific drivers of readiness, including financial literacy, plan design, and retirement income planning.

“The opportunity ahead is not just to increase participation,” de Silva said. “It’s to strengthen the systems and behaviors that turn saving into lasting security. That means helping people stay invested through disruptions, protecting savings from short-term shocks, and making long-term planning easier and more intuitive. Access is essential, but outcomes are what ultimately matter.”

For the full IRRI report and detailed dimension breakdowns, interested parties are asked to contact Scott Sunshine at Blue Dot Advisors.