Workers Without Access to Retirement Benefits Struggle to Build Wealth
New survey reveals the challenges and aspirations for workers without employer-sponsored benefits
Overview
For many Americans, retirement savings plans are a critical pathway to building wealth. The vast majority of the nation's $20.8 trillion in retirement savings was accumulated through employer-sponsored retirement plans, such as 401(k)s.1 But not all Americans have equal access to workplace savings programs: Nearly half of the private sector workforce—some 56 million workers nationwide—don't get retirement benefits through their jobs.2
This lack of access to a retirement savings plan affects the ability of working families to plan for and secure their financial future. Expanding access to, and increasing participation in, work-based retirement savings opportunities would provide a way for working families to build for the future and prepare for retirement. It would also benefit state and local governments by reducing the future cost of social services.
A nationally representative survey of workers who don't have access to employer-sponsored retirement plans shows that they experience everyday financial constraints that make it difficult for them to accumulate assets. Many respondents are living paycheck to paycheck; in fact, one-third said they "rarely" or "never" have money left over at the end of the month.
The survey, conducted by The Pew Charitable Trusts in 2024, examined financial goals, wealth perceptions, and challenges to building wealth for Americans who don't have access to an employer-based retirement savings program. Pew surveyed 1,132 private sector workers, ages 18 to 64, and survey respondents were divided into three subgroups: 498 Hispanic workers, 204 non-Hispanic Black workers, and 430 non-Hispanic White workers.
And as reflected in this survey, many Americans are falling behind. In 1989, the wealthiest 10% of Americans held seven times more wealth than the bottom half of the population, in terms of net household worth. By 2024, the wealthiest 10% of Americans held 11 times more wealth than the bottom 50%.3 A large wealth gap is evident across demographic groups: As of 2021, median wealth for White households equaled $250,400, while median Hispanic household wealth was $48,700, and median Black household wealth was $27,100.4 Wide differences also exist within these groups. For example, the median amount of wealth ($923,300) held by upper-income White households was 17 times the median wealth among lower-income White households ($55,400).5 ("Upper-income" households had an income that was at least double the national median—in 2021, more than $14,300 per month for a household of three. "Lower-income" households made less than one-third the national median, less than $4,800 a month for a three-person household.)
The growing wealth gap reflects the challenges that many Americans confront as they try to increase their income, pay for housing, attain an education, reduce debt, and gain access to financial services and credit.6 Removing barriers to building wealth is an imperative not just for achieving widespread financial security but also for ensuring that the American Dream remains within reach for all.7
This brief is the first in a series based on Pew's survey of workers who don't have access to employer-sponsored retirement savings plans. Future briefs will examine different topics related to building wealth, including wealth-building barriers, caregiving, state-facilitated retirement savings programs, and the new federal saver's match, among others.
Among the survey's key findings:
- The most common short-term financial goals among all respondents were paying down debt and saving toward a major expense, such as a house or car. Black respondents were more likely than White or Hispanic respondents to focus on budgeting more effectively, while White and Hispanic respondents were more likely than Black respondents to cite retirement savings as a goal.
- Black and Hispanic respondents were more likely than White respondents to say they felt "not at all" wealthy (64% and 61%, respectively, compared with 51% for White respondents).
- Many workers who participated in the survey noted significant, ongoing financial constraints that would inhibit their ability to save. For example, 31% of White respondents, 30% of Black respondents, and 42% of Hispanic respondents said they rarely or never "have money left over at the end of the month."
- Roughly 1 in 5 respondents said they struggle to manage debt.
- Despite such everyday struggles, building wealth was important to the vast majority of survey respondents (81%). When they were asked why wealth building was important, the primary reasons cited were the desire to live "without financial worries" and to achieve retirement security.
- For all respondents, not earning enough at their jobs was a top barrier to saving.
- The top three pathways for accumulating assets cited by respondents were putting money into savings and investments; increasing income; and minimizing debt. Within the category of savings and investments, real estate and retirement savings were the top choice across all respondents.
- A significant number of survey respondents—roughly 1 in 5—said they did not know what the best savings and investment options would be for building wealth. This reason was cited by 20% of White respondents, 26% of Black respondents, and 18% of Hispanic respondents.
Financial goals
The survey results highlighted both common and different financial priorities among racial and ethnic groups. (See Table 1.) A majority of participants in all three groups cited saving for a major expense or purchase as an important financial goal (White 57%, Black 54%, Hispanic 55%). A substantial majority of Black respondents (69%) focused on paying down or paying off debt, compared with 58% of Hispanic and 44% of White respondents. Black respondents were also more focused than others on budgeting more efficiently (55%). More Black and Hispanic workers prioritized saving in an emergency fund relative to White workers. White and Hispanic workers were more likely than Black workers to list saving for retirement as a financial goal, and Hispanic respondents were more likely than others to mention starting a business as a priority.
Table 1
Financial Goals for the Next 12 Months
Paying down debt, saving for major purchases were key goals
| White, non-Hispanic | Black, non-Hispanic | Hispanic | |
|---|---|---|---|
| Paying down or paying off debt | 44% | 69% | 58% |
| Budgeting my money more efficiently | 38% | 55% | 38% |
| Saving in an emergency fund | 29% | 43% | 37% |
| Saving toward a major expense or purchase (e.g., a house, car, vacation, education, planned medical expense) | 57% | 54% | 55% |
| Saving for retirement | 43% | 27% | 40% |
| Investing in the stock market | 14% | 13% | 12% |
| Starting a business | 4% | 10% | 18% |
| Making up for recent financial losses | 6% | 13% | 8% |
| Other | 4% | 1% | 4% |
Source: 2024 Pew survey of workers who lack workplace retirement plans
Perceived wealth
Although American households experienced gains in wealth during the COVID-19 pandemic, in 2024 most survey respondents said they didn't feel wealthy.8 Perceptions of wealth ("Overall, how wealthy do you feel today?") were strikingly similar across racial and ethnic lines, with 83% to 84% of respondents in each group reporting a combined feeling of either being "a little wealthy" or "not at all wealthy." Yet, there were differences in the intensity of this sentiment. Black respondents were most likely to feel "not at all wealthy" (64%), closely followed by Hispanic respondents (61%). By comparison, 51% of White respondents said they felt "not at all wealthy." Only a small percentage of respondents reported feeling "very wealthy" (White 2%, Black 4%, Hispanic 3%).
Financial situations and concerns
As reflected in their short-term financial goals (see Table 1 above), many respondents to Pew's survey felt constrained by their current financial situation. One-third of all respondents lived paycheck to paycheck, saying they "rarely" or "never" had money left over at the end of the month. (See Table 2.) Hispanic respondents were most likely to report that they "rarely" or "never" had money left over at the end of the month (42%). A significant number of Black respondents (42%) said they "sometimes" had money left over at the end of the month, suggesting a precariousness in their month-to-month situation. This precariousness was reflected in responses to other questions (not shown here), in which Black respondents were a little more likely to say they did not pay the full amount of rent due or a mortgage, or that they skipped a bill.
White respondents reported more financial breathing room. About 41% said they "always" or "often" had money left over at the end of the month, compared with 30% each for Black and Hispanic respondents.
Table 2
Respondents Reported Tight Financial Situations
Hispanic workers struggled most to make income last
| I have money left over at the end of the month | White, non-Hispanic | Black, non-Hispanic | Hispanic |
|---|---|---|---|
| Always | 25% | 15% | 14% |
| Often | 16% | 15% | 16% |
| Sometimes | 27% | 42% | 27% |
| Rarely | 20% | 14% | 24% |
| Never | 11% | 16% | 18% |
| Always/Often (net) | 41% | 30% | 30% |
| Rarely/Never (net) | 31% | 30% | 42% |
Source: 2024 Pew survey of workers who lack workplace retirement plans
Tough financial situations make it difficult for respondents to believe that building long-term wealth is achievable. Approximately 20% of respondents said the statement "Because of my money situation, I feel like I will never have the things I want in life" described their situation "completely" or "very well." (See Table 3.) Additionally, a significant portion were concerned that their savings would not last (White respondents 41%, Black 44%, Hispanic 44%).
Table 3
Survey Respondents Described Their Financial Situation as Difficult
Workers were concerned that savings would not last
| White, non-Hispanic | Black, non-Hispanic | Hispanic | |
|---|---|---|---|
| Because of my money situation, I feel like I will never have the things I want in life | |||
| Describes my situation completely/very well | 19% | 23% | 24% |
| Describes my situation very little/not at all | 48% | 41% | 46% |
| I am concerned that the money I have or will save won't last | |||
| Describes my situation completely/very well | 41% | 44% | 44% |
| Describes my situation very little/not at all | 25% | 28% | 27% |
Source: 2024 Pew survey of workers who lack workplace retirement plans
Household debt
Debt contributed to the overarching financial concerns reported in Tables 2 and 3, across all racial and ethnic groups surveyed. Roughly 1 in 4 respondents said they "struggle to" or "cannot" manage their debt. (See Table 4.) All groups listed credit card debt and car loans among their top three concerns (not shown in tables), but Black respondents also cited school loans in their top three sources of debt, while White and Hispanic respondents cited home loans.
White respondents were more likely to report being comfortable with their debt burden, as 42% said they could manage household debt "with ease." In contrast only 32% of Hispanic and 16% of Black respondents reported the same level of comfort with debt management. About 1 in 4 Black and Hispanic respondents (26% and 24%, respectively) said they struggled to manage their debt.
Table 4
Household Debt Contributes to Financial Worries
A significant share of survey respondents reported struggling with debt
| How manageable is your household debt? | White, non-Hispanic | Black, non-Hispanic | Hispanic |
|---|---|---|---|
| I can manage my debt with ease. | 42% | 16% | 32% |
| I can usually manage my debt but with some minor struggles. | 38% | 56% | 40% |
| I struggle to manage my debt. | 15% | 26% | 24% |
| I cannot manage my debt. | 5% | 1% | 5% |
Source: 2024 Pew survey of workers who lack workplace retirement plans
Importance of, and reasons for, building wealth
Despite the financial struggles of survey respondents reflected in Tables 2-4, building wealth was important across all groups, with 87% of Black and Hispanic respondents as well as 83% of White respondents saying that building wealth was either very or somewhat important.
Among all respondents and subgroups, the primary reason for building wealth was "to afford an enjoyable lifestyle without financial worries." (See Table 5.) Other significant reasons included securing retirement and leaving money to the next generation.
Table 5
Reasons for Building Wealths
A majority report wanting a lifestyle without financial worries
| What is the most important reason to build wealth? | White, non-Hispanic | Black, non-Hispanic | Hispanic |
|---|---|---|---|
| I want to afford an enjoyable lifestyle without financial worries. | 57% | 51% | 50% |
| I want to leave money to the next generation, whether my children or younger members of my family. | 14% | 28% | 18% |
| I want to retire or stop working and be secure in my old age. | 28% | 20% | 30% |
Source: 2024 Pew survey of workers who lack workplace retirement plans
Barriers to wealth building
Pew's survey also shed light on perceived barriers to achieving financial goals. Not making enough money at their current job was consistently cited as the top barrier across all groups, with 42% to 43% saying it affected them "very much." (See Table 6.) However, Black and Hispanic respondents were more likely to cite a lack of savings as a major barrier to investing, and Hispanic respondents were more likely than others (35%) to cite not having enough money to start a business. A substantial share of Black respondents (34%) cited too much debt as a barrier to wealth building.
Table 6
Reasons That Were 'Very Much' Preventing Respondents From Building Wealth
Income, lack of savings are key barriers
| White, non-Hispanic | Black, non-Hispanic | Hispanic | |
|---|---|---|---|
| Not making enough money at my current job(s) | 42% | 43% | 43% |
| Not having enough savings to start investing | 31% | 37% | 44% |
| Poor credit | 8% | 20% | 13% |
| Not having enough money to start a business | 14% | 24% | 35% |
| Too much debt | 21% | 34% | 19% |
Source: 2024 Pew survey of workers who lack workplace retirement plans
Best wealth-building strategies
When asked about the best strategies for building wealth, survey respondents in all three groups most frequently cited saving and investing. (See Table 7.) Improving day-to-day household finances—whether by increasing income (49% to 60%), minimizing debt (43% to 52%), and "living within my means" (24% to 39%)—were also cited frequently. Hispanic respondents showed more interest than others in entrepreneurship (21%). A substantial minority of all respondents (20% to 26%) also expressed interest in increasing their emergency savings.
Table 7
Respondents Were Asked to Select the Three Best Ways to Build Wealth
Savings and investments top the list
| White, non-Hispanic | Black, non-Hispanic | Hispanic | |
|---|---|---|---|
| Put money into savings and investments | 68% | 64% | 58% |
| Increase income | 55% | 60% | 49% |
| Minimize debt | 52% | 43% | 44% |
| Living within my means | 39% | 32% | 24% |
| Build emergency savings to handle unexpected expenses | 25% | 26% | 20% |
| Buy a house or other property | 11% | 12% | 18% |
| Entrepreneurship (e.g., start a business, side hustle) | 13% | 12% | 21% |
| Increase my education or professional skills | 6% | 14% | 11% |
| Other (please specify) | 2% | 1% | 3% |
Source: 2024 Pew survey of workers who lack workplace retirement plans
Preferred methods of saving and investing
Table 7 shows the strong preference among survey respondents to put money into savings and investments as the best way to accumulate wealth. A follow-up question asked respondents to identify the saving and investment opportunities they believed were the best way to build wealth. (See Table 8.)
Hispanic workers showed a clear preference for property or real estate (34%), ahead of retirement accounts (17%), cash savings (15%), and the stock market (11%). White respondents preferred putting money into retirement accounts, at 29%, followed by "property or real estate" (25%) and the stock market (14%). Black respondents were almost evenly split between property or real estate (21%) and retirement accounts (19%), followed by the stock market (14%) and cash savings (11%). The low response to the stock market by Black and Hispanic respondents may reflect the fact that Black and Hispanic individuals are much less likely than White adults to invest in equities.9
A significant number of respondents in all groups said that they did not know the best savings and investment option (White respondents, 20%; Black, 26; and Hispanic, 18%).
Table 8
The Best Ways to Build Wealth
Many cited real estate or retirement savings, but a significant minority said they did not know
| Thinking only about savings and investments, which of the following do you think is the best way to build wealth? | White, non-Hispanic | Black, non-Hispanic | Hispanic |
|---|---|---|---|
| Property or real estate | 25% | 21% | 34% |
| Retirement account (such as a 401(k) or an IRA) | 29% | 19% | 17% |
| The stock market (such as mutual funds or individual stocks not in a retirement account) | 14% | 14% | 11% |
| Cash savings | 8% | 11% | 15% |
| Life insurance | 2% | 1% | 3% |
| Bonds (e.g., bond mutual funds or individual bonds) | 2% | 4% | 1% |
| Cryptocurrency (e.g., Bitcoin) | 1% | 4% | 1% |
| Don't know | 20% | 26% | 18% |
Source: 2024 Pew survey of workers who lack workplace retirement plans
Conclusion
For many Americans, retirement savings represent a significant—and sometimes primary—portion of household wealth. And in the United States, most retirement savings are accumulated in retirement plans, such as 401(k)s, that are offered by employers. Pew chose to conduct a survey about wealth among a subset of U.S. workers who don't have access to retirement savings plans through an employer. This population includes people who are self-employed as well as people employed by companies that are too small to offer a retirement savings plan.
This brief highlights the complex perceptions and challenges of building wealth and financial security across different demographic groups in the United States. Even when the effect of unequal access to workplace retirement benefits is not a factor, the differences among groups remain significant.
Respondents shared common financial challenges and aspirations, but the survey also revealed areas where experiences diverge. Many workers reported struggling just to make ends meet and noted that everyday financial constraints impede their ability to achieve financial security. At the same time, most respondents agreed that building wealth is important. And for many, being able to save for retirement is seen as a key avenue for accumulating wealth.
To build wealth and achieve financial security, individuals and families need a convenient and effective way to accumulate assets. Expanding access to and increasing participation in work-based retirement savings opportunities would help millions of Americans accumulate wealth and prepare for a secure retirement.
Research shows that individuals are 15 times more likely to save for retirement if money is deducted automatically from their paychecks. To address the gap in access to employer-sponsored retirement savings plans, 17 states have created statewide programs targeted specifically at workers who don't have access to an employer-sponsored plan. Known as automated retirement savings accounts, or auto-IRAs, these programs serve private sector workers who don't have workplace retirement benefits. With an auto-IRA, the employer automatically deposits money from a worker's paycheck into an IRA managed by a private financial services firm and regulated by the state. Black and Hispanic workers, who have lower rates of access to employer-provided retirement benefits than other groups of workers, are strongly participating in these auto-IRA programs.10
To date, these state programs have helped 1 million workers—in the 10 states for which data is available—accrue roughly $1.9 billion in savings since 2017.11 These state accounts are funded solely with employee contributions, but a new federal tax credit, the Saver's Match, will provide matching funds of up to $1,000 for retirement accounts of eligible savers when it goes into effect in 2027.
Workers who lack access to employment-based retirement savings plans are often vulnerable—especially in retirement, when they must rely heavily on income from Social Security. State-based auto-IRAs and the federal Saver's Match can help them prepare for a more secure financial future. Without such initiatives, many millions of Americans will be left to rely on government-provided social services—at an enormous cost to both state and federal taxpayers.
Methodology
From April 9 to May 13, 2024, The Pew Charitable Trusts fielded a survey on attitudes toward wealth among 1,132 workers, ages 18 to 64, who did not have access to a workplace retirement plan. Two respondents were excluded from the analysis after quality checks revealed potentially unreliable data, as indicated by implausibly rapid survey completion times and evidence of "straight-lining," where respondents selected the same answer option across multiple survey items, suggesting biased and inaccurate responses. The survey oversampled Black and Hispanic respondents, allowing for meaningful comparisons across racial and ethnic groups. Responses were appropriately weighted to ensure the representativeness of the sample. A statement of methodology and survey toplines are available on the Pew website.
Endnotes
- John H. Gorman, Elizabeth A. Myers, and John J. Topoleski, "U.S. Retirement Assets: Data in Brief," Congressional Research Service, 2023, https://www.congress.gov/crs-product/R47699.
- John Scott, "Millions of Americans Are Falling Behind on Their Retirement Goals," The Pew Charitable Trusts, Oct. 24, 2024, https://www.pewtrusts.org/en/about/news-room/opinion/2024/10/24/millions-of-americans-are-falling-behind-on-their-retirement-goals.
- "Distribution of Household Wealth in the U.S. Since 1989," Board of Governors of the Federal Reserve System, 2025, https://www.federalreserve.gov/releases/z1/dataviz/dfa/distribute/table/#quarter:138;series:Assets;demographic:networth;population:all;units:shares.
- Rakesh Kochhar and Mohamad Moslimani, "Wealth Surged in the Pandemic, but Debt Endures for Poorer Black and Hispanic Families," Pew Research Center, Dec. 4, 2023, https://www.pewresearch.org/2023/12/04/wealth-gaps-across-racial-and-ethnic-groups/.
- "Middle-income" households are those with an income that is two-thirds to double the national median income. This was about $4,800 to $14,300 monthly in December 2021 for a household of three. "Lower-income" households had incomes of less than $4,800, and "upper-income" households had incomes greater than $14,300. (Dollar amounts are expressed in December 2021 prices.)
- The Pew Charitable Trusts, "Housing in America: Where Is Home?," March 8, 2024, in After the Fact, podcast, https://www.pewtrusts.org/en/research-and-analysis/articles/2024/03/08/housing-in-america-where-is-home. "Race and Financial Security Play Central Roles in Student Loan Repayment," Sarah Sattelmeyer and Jon Remedios, The Pew Charitable Trusts, Dec. 15, 2020, https://www.pewtrusts.org/en/research-and-analysis/articles/2020/12/15/race-and-financial-security-play-central-roles-in-student-loan-repayment. Rakesh Kochhar and Mohamad Moslimani, "Wealth Surged in the Pandemic." Rakesh Kochhar, "The State of the American Middle Class," Pew Research Center, 2024, https://www.pewresearch.org/race-and-ethnicity/2024/05/31/the-state-of-the-american-middle-class/.Aria Floant et al., "The Case for Accelerating Financial Inclusion in Black Communities," McKinsey Institute for Economic Mobility, 2020, https://www.mckinsey.com/~/media/McKinsey/Industries/Public%20Sector/Our%20Insights/The%20case%20for%20accelerating%20financial%20inclusion%20in%20black%20communities/McK-The-case-for-accelerating-financial-inclusion.pdf."Racial and Ethnic Wealth Inequality in the Post‑Pandemic Era," Rajashri Chakrabarti, Natalia Emanuel, and Ben Lahey, Federal Reserve Bank of New York, Feb. 7, 2024, https://libertystreeteconomics.newyorkfed.org/2024/02/racial-and-ethnic-wealth-inequality-in-the-post-pandemic-era/.
- "Americans Are Split Over the State of the American Dream," Gabriel Borelli, Pew Research Center, July 2, 2024, https://www.pewresearch.org/short-reads/2024/07/02/americans-are-split-over-the-state-of-the-american-dream/.
- Rakesh Kochhar and Mohamad Moslimani, "Wealth Surged in the Pandemic."
- "Racial and Ethnic Wealth Inequality in the Post‑Pandemic Era," Rajashri Chakrabarti, Natalia Emanuel, and Ben Lahey.
- The Pew Charitable Trusts, "Demographic Overview of Illinois Secure Choice Program Population," 2023, https://www.pewtrusts.org/en/research-and-analysis/issue-briefs/2023/08/demographic-overview-of-illinois-secure-choice-program-population.
- "State Program Performance Data," Georgetown University Center for Retirement Initiatives, Georgetown University, March 25, 2025, https://cri.georgetown.edu/states/state-data/current-year/.
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