In today's economic environment, it seems that everyone is struggling to make ends meet, and even some of the wealthiest Americans are falling behind in their retirement savings.

According to a latest study conducted by Ipsos ( Ipsos ) for HSBC, wealthy Americans now believe that they need $2.6 million to retire comfortably, a figure that has increased by 26% compared to a year ago. The survey targeted investors with at least $100,000 in investable assets. On average, they have saved only 52% of this amount, and no generation has been able to achieve their goal as planned. The Baby Boomer generation, which is closest to retirement, has reached 74% of their goal, while the Millennial generation has only managed to save 42%.

A report released last week by the non-profit organization Transamerica Institute stated that uncertainties about the future of social security, ongoing inflation, competing financial priorities, and the threat of employment disruptions are making it more difficult for Americans to save for retirement.

"This is a perfect storm," said Transamerica Institute, the Chief Executive Officer and President of Catherine Collinson, in the report.

At the same time, retirement costs continue to rise, while the safety net for retirees is weakening. A report released in July by Fidelity indicates that the average medical expenses for 65-year-olds retiring this year are expected to be $185,500 over their entire retirement period, a 7.5% increase from the same period last year. According to data from the annuity advocacy organization Alliance for Lifetime Income, by 2027, more than 4.1 million Americans will turn 65 each year, which means that more retirees will have to rely on the Social Security retirement trust fund; this fund is expected to deplete its reserves by 2032.

This kind of pressure is not unique to the United States. Longer lifespans and lower birth rates are putting strain on pension systems around the world, and the costs may ultimately be borne by the younger generation.

The Executive Director of the International Pension Management Center ( International Centre for Pension Management ), Sebastien Betermier, stated in an interview on CNBC on October 25th: "The longer the lifespan, the more years the pension fund needs to cover, so this immediately becomes an additional liability."

“Think about the huge cost this will actually impose on the next generation,” he continued, “This is a time bomb.” This year’s Marsh CFA Institute Global Pension Index rated the U.S. retirement system as C+, ranking it 33rd among 55 retirement income systems.

Blackstone CEO Larry Fink has been warning for years that the United States is heading towards a retirement crisis. BlackRock Americans surveyed said they would need approximately $2.1 million to retire comfortably, but 62% of them have saved less than $150,000.

“This is a lot. More than I anticipated,” Fink wrote in his 2025 annual letter to shareholders. “And almost no one has come close to this goal.”

HSBC’s research indicates that the threshold for wealthy Americans is even higher, and even so, they find it difficult to meet these standards. The Generation X, which was once warned would make retirement issues “more difficult and tricky,” has saved 55% of their target amount. Generation Z has reached 45%, only slightly higher than the Millennial generation.

Racquel Oden, the head of HSBC's International Wealth and Premium Banking Business in the United States, stated in a press release: "Even for those with considerable wealth, a comfortable retirement is becoming increasingly expensive."

Retirement is no longer the only goal.

Part of the issue is that retirement is no longer the only savings goal for wealthy Americans. Seven in ten respondents said they are planning for a life that no longer follows a neat, step-by-step path. Providing funds for retirement remains the most common goal (43%), but closely followed by personal or career reinvention (39%), such as changing careers, starting a business, or planning a career break.

Providing support for children and elderly parents ranks third (37%), which is becoming an increasingly heavy financial burden for some people. As Americans live longer, more people reach retirement age while their parents still need care, and these costs will soon erode their fixed incomes.

AARP Public Policy Institute Senior Director of Care Services Rita Choula previously stated to Fortune: "When you retire, you basically live off a fixed income. If you don't include an additional $7,000, $8,000, or $9,000 per year into that fixed income, it can have a significant impact."

Longer lifespans are also reshaping what wealthy Americans intend to leave to their heirs. HSBC found that over half (59%) of respondents stated that living longer has changed their estate planning; 31% said they would use more funds for their own future expenses, such as long-term care, even if this would reduce the inheritance left to their heirs.

At the same time, many wealthy parents are becoming uneasy about passing on their wealth to the next generation. According to a study by U.S. Bank Private Banking ( Bank of America Private Bank ), among Americans with net investable assets of at least $3 million, less than half (47%) believe that the next generation is ready to take over the family's philanthropic efforts, which is lower than the 55% in 2024.

Among those interviewed by HSBC, nearly half (48%) stated that their main goal is to enable their children or grandchildren to achieve complete financial independence, even if this means they will have to go through some difficulties in the process.