New Dayforce Report Uncovers America's Growing Retirement Divide

Executive Summary

• Dayforce released The Retirement Divide, a new report detailing widening disparities in U.S. retirement savings by income, gender, race/ethnicity, and age for the full‑time workforce (2021‑2024).
• Key findings show lower‑income workers (< $150k) falling behind higher earners, participation gaps expanding for women, and pronounced racial gaps in plan enrollment and loan usage.
• The report highlights notable progress among Gen Z workers, whose savings rates and contributions grew faster than other generations since 2022.

Key Details

• Report Scope: Analysis of retirement‑savings trends (participation rates, employee/employer contributions, loan use) across the U.S. full‑time workforce from 2021‑2024.
• Income Disparities: Workers earning <$50k saw participation drop from 58% to 52.9%; overall savings rate fell from 4.9% to 4.6%. Higher earners (> $150k) experienced increases in all metrics.
• Gender Gap: Participation gap between men and women widened to 3.9 percentage points (79.9% vs. 76%).
• Racial/Ethnic Gaps (2024):
• Plan participation: White 84.6%, Black 68.2%, Latino 61.1%.
• Active loan usage among participants: Black & Latino 26.4% each, White 14.9%.
• Gen Z Progress: Participation rose from 64% to 68.7%; savings rate improved from 6.6% to 7.2%; total contributions increased 24% since 2022.
• Methodology: Data derived from anonymized Dayforce client records (opt‑in), aggregated by gender, race/ethnicity, age, and income; includes 401(k), 403(b), 457(b), IRAs, ESOPs, pensions. Safeguards prevent reidentification.
• Quotes:
• Jason Rahlan (Global Head of Sustainability & Impact): “We believe this research should serve as both a wake‑up call and a call to action…”.
• Matt Bahl (VP, Workplace Financial Health, Financial Health Network): “Every American should have the opportunity to retire securely…”.

Notable Quotes

• “The Retirement Divide reveals for the first time the true state of retirement savings in America.” – Matt Bahl

Materials such as full report, fact sheet, and blog post are available via links provided in the release.