Financial advisors help make informed decisions about money.

11 November 2025

by Barry A. Cothran

According to The Retirement Divide (Dayforce 2025), the newest data on retirement readiness paints a sobering, but important, picture – millions of Americans are struggling to make progress toward long-term financial security, even as the broader economy shows signs of strength.

Retirement plan participation has dipped, gaps across gender, race, and income have widened, and savings rates remain well short of the recommended 12 to 15 percent.

Yet the report also reveals areas of meaningful progress. Total contributions are rising, employer matches are improving, and younger workers are beginning to build momentum. The insights highlight a hopeful truth – people are working hard and trying to save, but the struggle is real. To make meaningful progress and confidently navigate the road ahead, they need tools, clarity, and support.

This is why financial planning matters and the need for financial guidance has never been greater. Everyone deserves access to the knowledge and resources that make retirement feel achievable again. Data like this helps us understand where people are stuck, who need more help, and how advisors can guide individuals toward stronger long-term outcomes. For financial advisors, this is a defining moment to step in and close the gaps families have difficulty bridging alone – gaps in knowledge, clarity and vision.

Key Findings from The Retirement Divide:

• 78.7% of full-time workers participated in a retirement plan – down slightly from prior years.
• Average total contribution reached $9,488, with employees contributing $5,988 and employers contributing $3,500.
• The overall savings rate improved to 9.3% (including 3.4% employer savings rate) but still trails the 12–15 percent target.
• Retirement gaps continue to widen:
  • Women contributed significantly less than men.
  • Black and Latino workers saw declining participation and lower contributions relative to white workers.
  • Workers earning less than $50,000 had the sharpest drop in participation, falling to 52.9%.
• Younger workers (Gen Z) showed the fastest improvement in contributions and participation, a bright spot in the data.
• 16.2% of participants are now borrowing from their retirement accounts, a sign of increasing financial strain.

The data should give every financial advisor pause, as it highlights a tremendous opportunity. This is an ideal moment for advisors to lean in to help clients interpret the data and show them where they stand and to support the 40s- and 50s-year-old families who carry the weight of uncertainty but are ready to act with the right guidance. People want to feel like they’ve “got it” – like they’re the hero of their financial future, but they also want guidance. They want clarity. They want someone to help them make sense of what they are experiencing. That’s where financial advisors can step and lead.

When households understand how today’s decisions shape their future, they engage more deeply, save more consistently, and trust the planning process. The demand for transparency, education, and personalized planning has never been higher. The need is real, and advisors are uniquely positioned to help bring clarity and create visions of hope. Advisors can turn these trends around. When clients understand their current position and see a plan they can trust, everything changes.

https://www.dayforce.com/Ceridian/media/documents/resources/The-Retirement-Divide.pdf

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