American workers expect to retire with just $515,000, roughly half of the million-plus figure financial experts recommend, according to a new report from Clever Real Estate. The typical worker currently has only $210,000 set aside, and nearly two-thirds (65%) acknowledge they are already behind on their savings goals. This shortfall creates significant financial anxiety, with 54% of working Americans worried they will outlive their savings.

The report indicates that a worker earning the median salary of $64,220 would need about $1.03 million for a 20-year retirement. Despite this need, many Americans are saving less than in previous years. More than a third of workers (38%) have reduced their retirement contributions in the past 12 months, including 46% of Gen Z and 42% of millennials. Nearly 1 in 5 workers (18%) have never saved for retirement at all, citing high living costs (48%) and low income (38%) as the primary barriers.

Savings and Homeownership Disparities

Homeownership significantly impacts retirement readiness. The vast majority of homeowners (89%) are currently saving for retirement, compared to just 63% of non-homeowners. Working homeowners have accumulated $285,000 in savings, six times more than non-homeowners who have saved $45,000. Homeowners expect to retire with $600,000 in total savings, while non-homeowners anticipate only $170,000.

Reliance on Social Security and Regrets

Social Security remains a focal point of uncertainty, with 66% of working Americans worried it will run out before they retire, yet 63% plan to rely on it. The vast majority of workers (86%) express regrets about their retirement savings, most frequently citing starting to save too late (35%). Nearly two-thirds (63%) did not begin saving until they were at least 30 years old, and 31% waited until they were 40 or older.

While 83% of workers worry they will have to lower their standard of living in retirement, most are unwilling to cut current discretionary spending. The majority will not give up subscription services (69%), travel (67%), or nonessential shopping (65%) even if it would improve their financial security in retirement.

Former acting U.S. Immigration and Customs Enforcement Director Jonathan Fahey stated that former President Joe Biden’s immigration policies contributed to higher housing costs for Americans, citing a Federal Reserve Bank of Dallas working paper. The paper links the surge in unauthorized immigration between 2021 and 2024 to rising home prices and rents. Fahey made these remarks during an interview on Fox Business following the July 4 holiday weekend, arguing that the increase in immigration placed additional pressure on an already strained housing market.

The Dallas Fed working paper examined how the unprecedented rise in unauthorized immigration affected local labor and housing markets by combining immigration court records with government administrative data. The authors cautioned that the paper is a preliminary draft released for professional review and does not necessarily reflect the views of the Federal Reserve Bank of Dallas or the Federal Reserve System.

Fahey contended that bringing millions of people into the country increased demand for homes, healthcare, and other services without a corresponding increase in supply. "The American people overall are the losers on illegal migration," Fahey said. These comments come as housing affordability remains a significant concern, with a recent BofA Securities housing report noting elevated home prices and higher construction costs continue to weigh on buyers.

The study found that a 1% increase in unauthorized workers relative to a local labor force was associated with roughly a 1% increase in overall employment. It also linked the population increase to an estimated 2.2% rise in home prices and a 1.4% increase in rents, reflecting additional housing demand. However, the researchers stated they found no evidence that the immigration surge reduced average wages.

Impact on Housing Market

The debate over immigration's economic impact continues as immigration remains a central policy focus during President Donald Trump’s second term. Last month, Trump nominated former Oklahoma state trooper and U.S. Marine Lance Schroyer to lead U.S. Immigration and Customs Enforcement as the agency prepares for a broader expansion of enforcement operations. Fahey argued that the Trump administration’s approach prioritizes protecting American workers by reducing illegal immigration.