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If you only paid attention to today’s headlines, you might think the average American is doing just fine.
After all, the market is soaring, reaching or nearing all-time highs. Official unemployment numbers are low. Inflation, while still a concern, has cooled considerably from its recent peak. Corporate profits continue to look strong.
Yet, if you look behind those encouraging numbers, a very different and more troubling story emerges. For tens of millions of hardworking Americans, daily life feels like they are constantly running in place, unable to get ahead. Their paychecks are stretched to the breaking point by the rising cost of living, their personal savings are thin or non-existent, and the traditional idea of a secure, confident retirement feels more like a distant fantasy than an attainable goal.
A new, eye-opening report from Dayforce, titled The Retirement Divide, pulls the curtain back to reveal what is really happening in households across the country. In my opinion, it is the clearest and most comprehensive scoreboard available on the state of retirement preparedness across the full-time workforce in the United States.
If you're a leader with WealthWave, you absolutely need to see what this report says. It powerfully reinforces why our mission to help families build financial security is not just a “nice to have” service. It's an essential, urgent calling.
Start with the big picture.
Dayforce analyzed nearly 1.2 million anonymized employee records from 2021 through 2024. They looked at who participates in retirement plans, how much workers and employers contribute, how much people are really saving, and how often they are borrowing from their own retirement accounts. They covered 401(k)s, 403(b)s, 457(b)s, pensions, and IRAs, and they included the people who are not in any plan at all.
Here is what the 2024 snapshot shows for the full-time workforce:
So yes, there is some progress. Contributions are higher than they were in 2021. Savings rates ticked up, even in an inflationary environment.
But look deeper.
We are still a long way from where people need to be. A 9.3% savings rate in a world of longer lifespans, uncertain Social Security, and rising healthcare costs is not enough. Not even close.
Add in the reality outside the report:
Put all that together and it is no surprise that 4 in 5 Americans now believe retirement insecurity is a national crisis.
This is not a minor problem. It is a fault line running right under the middle class.
The most important word in the title of the Dayforce report isn’t “retirement.” It’s “divide.” That distinction matters because this isn’t a single, unified story—it’s two very different ones.
On one side, some people are gaining ground, making progress toward financial stability and security in retirement.
On the other, many are falling further behind, unable to close the gaps that already exist.
These divides are most glaring in areas where our society is already vulnerable—across gender, race, age, and income. For example, women and marginalized communities often face systemic barriers that make it harder to save for the future.
The story of retirement isn’t just about planning; it’s about who has access to the opportunities needed to plan effectively—and who doesn’t.
1. The Gender Gap
While both men and women participate in retirement plans at relatively high rates, the disparity between them is not only present but also growing wider.
That difference has grown to 3.9 percentage points since 2021.
Then look at contributions:
That is a $2,878 annual difference in money actually going toward retirement. Employers are putting significantly more into men’s accounts than women’s, and men are contributing more themselves.
Women live longer on average, yet are systematically putting less away. That is a retirement time bomb.
2. The Racial and Ethnic Gap
The divide becomes even more striking when you consider factors such as race and ethnicity, highlighting deeper disparities that exist within different communities. These differences often underscore systemic inequalities and can be observed across various social, economic, and cultural dimensions.
Participation in retirement plans:
Total annual contributions:
Savings rates tell the same story:
On top of that, loan use from retirement accounts is much higher for Black and Latino workers. Among plan participants, about 14.9% of white workers have a retirement loan outstanding, compared with 26.4% of Black and Latino workers.
Translation: many of the people who most need long-term growth are being forced to raid their future just to survive their present.
3. The Generational Gap
Younger workers are at least showing some positive momentum, but they are starting from a position that is significantly behind older generations.
Participation for Gen Z has climbed from 64.0% in 2022 to 68.7% in 2024, and their contributions are up 24% in that period.
But look at the starting point:
Gen Z’s savings rate is only 7.2%, far below the 12% to 15% target.
They have the gift of time, but right now they are not using it.
4. The Income Gap
Finally, the harshest divide of all: income. It’s the line that separates opportunities, access, and quality of life, often dictating the resources available to individuals and communities. This divide impacts everything from education and healthcare to housing and career prospects, creating a cycle that can be difficult to break.
Participation by income:
Total annual contributions:
Savings rates follow the same pattern. The lowest-income workers are saving 4.6% of pay. The highest-income group is saving 12.3%.
And since 2022, participation, contributions, and savings rates have fallen for everyone making under $150,000 and risen for those above it.
In other words, the people who can least afford to fall behind are falling behind the fastest.
Everything.
Dayforce calls this report a wake-up call and a call to action for employers, plan providers, and policymakers.
I would add one more group: WealthWave leaders.
We sit at the intersection of everything this report exposes:
We do not control interest rates, markets, or corporate policies. But we do control something just as powerful.
We control education.
We teach people how money works. We show them how to read a statement, how to understand a savings rate, how to see their paycheck as a tool instead of just a lifeline. We give them a path from confusion toward clarity.
When a family learns:
That is not theory. That is the difference between being on the right side of this divide or the wrong side.
I want you to really absorb this.
Every time you sit down with a family, teach a financial literacy class, share TheMoneyBooks series, or walk someone through the Money Milestones, you are doing far more than just “doing business.” You are engaged in a meaningful act that can profoundly alter the course of their financial lives.
You are:
You are one of the only people in their life who will ever have that conversation with them.
Not their employer.
Not their bank.
Not the government.
You.
That's the real meaning of leadership in this business. It is not just about titles, rings, or recognition. It is about standing in the gap between where people are and where they need to be, and refusing to let them fall through.
Here's how we, as leaders, can lean into this pivotal moment and make a tangible difference.
1. Make Retirement Literacy Non-Negotiable
Never run an appointment, class, or webinar without emphasizing how today’s financial decisions directly shape tomorrow’s retirement outcomes. Every choice made now—whether saving, investing, or budgeting—plays a critical role in building a secure and comfortable future. Make it a priority to connect the dots for your audience, showing them how small steps today can lead to big impacts down the road.
2. Focus on the Groups Furthest Behind
This report makes it clear which groups are falling behind and need the most help to get back on track. These demographics include women, Black and Latino workers, younger generations of workers, and households with lower incomes.
Intentionally reach them.
3. Attack Retirement Loans at the Root
A retirement loan is often a symptom of a deeper issue, not the root problem itself. The real issue lies in insufficient cash flow planning and the absence of adequate emergency savings. Without proper financial preparation, individuals may find themselves turning to retirement funds as a last resort during unexpected expenses or financial shortfalls. This underscores the importance of proactive planning, such as setting aside emergency funds and carefully managing income and expenses, to avoid dipping into resources meant for the future.
We can teach them:
4. Build Leaders Who can Multiply This Impact
You are only one person. The divide is nationwide.
If you truly want to make a significant dent in this nationwide crisis, you can't go it alone. You need to build a team of educators—a force of like-minded leaders who can amplify your efforts, with each one reaching hundreds or even thousands of people alongside you.
That's what WealthWave is built for.
I started in this business back in 1982. America was facing its own set of significant problems then. We had sky-high interest rates and widespread economic uncertainty. Families across the country were scared and confused about their financial future.
What hasn't changed between then and now is a fundamental truth: people will always need someone they can trust to explain money clearly and help them take meaningful action.
The recent Dayforce report has given us hard numbers that confirm what we in the field see every single day. The retirement divide is not just an idea; it is a real, measurable crisis. It is wide, and for all too many individuals and families, it is growing wider.
But this gap is not fixed. It is not an unchangeable reality.
When people finally learn how money truly works, they begin to change their habits and their outlook. When they change, the positive effects ripple outward, transforming their families' futures. When enough families make these crucial changes, entire communities and subsequent generations can change for the better.
You are not going to single-handedly fix every systemic problem that contributes to this divide. That is not what you are supposed to do. You are, however, supposed to do your part, right where you are.
So, teach one more class to a new group of listeners. Give out one more educational book to someone who needs it. Make one more important call to a family on the edge. Show one more family how to make the critical shift from a 5% savings rate to 10%, how to move from relying on loans to building up savings, and how to transition from a state of fear to one of confidence with a solid plan.
That is how we, as WealthWave leaders, work to close the retirement divide. We do it one client, and one informed decision, at a time.
Tom Mathews
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