Fewer than half of Americans budget regularly, and far fewer manage their savings and investments — an inertia problem that bodes poorly for retirement readiness in the US.

Many workers think they need seven figures saved in order to retire comfortably, though they arrived at that figure by guessing, not through research or real financial planning.

So what’s the solution?

Do something — budget, run a retirement calculator, ask for help from a financial adviser, says Catherine Collinson, CEO and president of the nonprofit Transamerica Institute and Transamerica Center for Retirement Studies, which just published its annual study on retirement security in the US.

“While these action steps may sound basic, many people are not yet taking them, and they can have a profoundly positive impact on a person’s ability to retire comfortably,” Collinson told Yahoo Finance.

“The ability for many Americans to achieve a financially secure retirement is iffy at best,” she said. “With today’s high cost of living and fluctuations in the employment market, it’s becoming even more difficult.”

The do-nothing trend isn’t new, Collinson said. Workers exhibiting low engagement with their own finances appear in the data year after year: Less than a quarter have a written financial plan, and about a third don't have a plan at all.

What’s behind the inertia

People say they have too many money worries to wrangle with, and they’re worn out from it all.

Only 15% are very optimistic about their future. More than a third are somewhat pessimistic, and 12% are very pessimistic about their future.

Day-to-day life is taking a toll. For about a third of respondents, just getting by to cover basic living expenses is their main financial priority, along with paying off credit card debt.

More than 4 in 10 of the people surveyed said healthcare and housing costs are weighing on their finances the most.

How are they coping? About 20% are working a second job or a side hustle. Where it gets ugly: People are also amassing new credit card debt, skipping healthcare, pulling money from retirement savings, or putting the brakes on contributions to retirement accounts.

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“Americans are navigating a turbulent economy, the high cost of living, the impacts of AI and robotics on the future of work, and the nerve-racking countdown to the depletion of the Social Security trust funds,” Collinson said. “These megatrends are driving the doldrums in Americans’ retirement outlook.”

That said, people have the power to “take charge of their finances in ways that could help improve their current situation and long-term prospects.”

One easy first step: Retirement calculators are widely available online and can help you get a sense of whether you’re on track. Check out AARP, Bogleheads, Fidelity, Schwab, or Vanguard to start.

Kerry Hannon is a Senior Columnist at Yahoo Finance. She is a career and retirement strategist and the author of 14 books, including "Retirement Bites: A Gen X Guide to Securing Your Financial Future," "In Control at 50+: How to Succeed in the New World of Work," and "Never Too Old to Get Rich." Follow her on Bluesky and X.

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