Americans are reducing their retirement savings. That's a "warning sign," experts say.

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March 31, 2026 / 2:47 PM EDT

/ CBS News

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Americans are sliding backward in preparing for retirement, with employees reducing their annual contributions to their 401(k) accounts last year, according to new research from payroll firm Dayforce.Full-time workers cut their contribution rate in 2025 to 8.9%, from 9.2% a year earlier, while one in four workers reduced their annual savings in their 401(k) or other types of employer-sponsored accounts, the study found. The dip — the first decline since Dayforce began tracking the measure three years ago — was sharpest among workers with annual income of $50,000 to $100,000.That decline may point to the financial pressures on middle-class Americans, with some cutting retirement contributions to boost take-home pay, Jason Rahlan, global head of sustainability and impact at Dayforce, told CBS News. The analysis also found that almost 20% of full-time workers tapped their 401(k) plans for loans last year — the highest share since the company started tracking the data. "This should be a warning sign," Rahlan told CBS News. "It may be a sign of financial strain," pointing to workers setting aside their retirement goals to focus on more immediate budget issues. About half of Americans said they were more financially stressed heading into 2026 than a year earlier, according to a December study from insurance firm Allianz Life. Covering day-to-day expenses was the biggest source of concern, the analysis found. "Seeing the crunch"Although the dip in retirement contributions is relatively small, it could result in a "real impact over the long term" if that trend continues, given the importance of continuously saving throughout one's career, noted Matt Bahl, vice president at the Financial Health Network, a nonprofit focused on financial issues that contributed to the report."When you are struggling day to day, it's hard to focus on your long-term goals," Bahl said. "We're really seeing the crunch for those middle-income earners — it speaks to the affordability crisis."