Nearly Half of Americans Under-Saving for Retirement, TIAA CEO Warns

Nearly 45% of Americans are not adequately saving for retirement, a situation TIAA Retirement Solutions CEO Kourney Gibson says demands immediate action.

Gibson emphasized the urgency of the issue, stating, “45% of Americans aren’t saving enough for retirement so every single day that we’re sitting there presenting on something, or sitting in a room, looking at each other without an outcome on the agenda, that’s time wasted from actually executing.” She highlighted the need to streamline processes within the 107-year-old firm and expand access to investment and savings products. This shortfall is particularly concerning as traditional pension plans decline and reliance on Social Security increases.

A recent TIAA survey revealed that two-thirds of Americans believe retiring between 65 and 70 is unattainable, with many anticipating they will need to work longer than expected. Gibson noted that concerns about retirement security span across all demographics, with Millennials and Gen Z workers particularly focused on having “something” saved for the future. She is focused on expanding access to guaranteed lifetime income as part of pension plans, believing it can alleviate financial burdens.

Gibson, who joined TIAA after a 20-year career at Loop Capital, encourages workers to take full advantage of employer-matching programs, stating, “Do not leave that money on the table. Scratch, claw, whatever.” She also prioritizes gathering feedback from employees at all levels to foster innovation and efficiency, believing good ideas can originate from anywhere. The lack of adequate retirement savings can have significant consequences for individuals and the broader economy, potentially increasing reliance on social safety nets.

Gibson and her team are committed to addressing this challenge and ensuring TIAA remains a vital resource for retirement security for the next century.