Middle Class Retirement Planning: How Your Life Stage Shapes the Journey

October 28,2025

The road to retirement looks different for everyone — especially for the American middle class. A new report from the Transamerica Center for Retirement Studies (TCRS), in collaboration with the Transamerica Institute, reveals how age, priorities, and life circumstances dramatically influence how well middle-class Americans prepare for retirement.

Yet beneath the statistics, one truth stands out: middle-class families have more opportunities than ever to secure guaranteed lifetime income for you and your spouse, reduce taxes, and even transform their existing IRS-qualified accounts into IRS Roths — strategies that can save some people hundreds of thousands of dollars over time.

The Shifting Priorities of the Middle Class

According to the report, which surveyed over 10,000 U.S. adults, 63% of middle-class respondents said their top life goal is enjoying life, while 61% prioritize staying healthy. However, these values often collide with financial and caregiving pressures that vary across different stages of life. From young adults just entering the workforce to retirees facing healthcare costs, each decade brings new challenges to achieving financial security — and opportunities for massive tax savings when guided by proper retirement planning.

Long-Term Care: A Growing Concern

Planning for long-term care is one of the biggest blind spots for many middle-class Americans. The survey found that:

43% of retirees plan to rely on family or friends for care.
33% expect to move into an assisted living community.
29% plan to use home care services.
11% plan to move into a nursing home.
26% admit they have no long-term care plan at all.

Even among those in their 60s and 70s, nearly a third say they have not mapped out how they’ll afford or access long-term care. Catherine Collinson, CEO and president of the Transamerica Institute, warns that while the middle class works hard to save, their ability to achieve a secure retirement is “hanging in the balance.”

A well-structured plan that includes guaranteed lifetime income for you and your spouse and tax-efficient conversions of traditional accounts into IRS Roths can provide far greater stability during these years.

The 70s and Beyond: Health Over Wealth

For Americans aged 70 and older, the focus has shifted from accumulation to preservation — both of health and independence. Although some may be financially stable, most are unprepared for long-term care expenses. Their top retirement fears include:

45% fear declining health that requires long-term care.
39% worry about cognitive decline or dementia.
39% fear losing independence.

Only 16% of seniors feel confident they can afford long-term care. Nearly half (49%) plan to depend on family and friends for support, while 22% admit they have no plan at all.

This stage is where Roth conversion strategies and tax-optimized income streams can have an outsized impact — helping retirees enjoy peace of mind through guaranteed lifetime income and massive tax savings that preserve wealth across generations.

The 60s: The Retirement Countdown

Those in their 60s are transitioning out of the workforce and focusing on enjoying their later years. Yet, even as they savor more freedom, financial concerns linger. According to the report, their biggest worries include:

46% fear reduced Social Security benefits.
43% worry about outliving their savings.

For many, this decade is about balancing two competing goals — enjoying retirement while ensuring financial sustainability. As life expectancy rises, retirees may need their money to last 20 to 30 years or more. That makes proper planning, Roth conversions, and guaranteed income solutions critical to avoiding outliving one’s savings.

The 50s: The Retirement Danger Zone

The 50s are often the most pivotal — and stressful — decade for middle-class Americans when it comes to retirement planning. Collinson refers to this as the “retirement danger zone.” Savings are often insufficient, and the window to make meaningful progress is closing fast.

At this point, converting IRS-qualified accounts into IRS Roths can be one of the smartest moves — allowing future withdrawals to be tax-free and positioning families for massive tax savings later. Paired with annuity-based strategies that create guaranteed lifetime income for you and your spouse, this approach can lock in stability while reducing uncertainty.

The 40s: Juggling Family, Career, and Finances

For those in their 40s, the challenge is balancing multiple financial priorities. Many are juggling careers, raising children, and caring for aging parents — often all at once. As a result, saving for retirement can take a back seat to immediate needs.

However, this is the decade when tax-advantaged planning begins to pay off. Mid-career individuals who proactively explore Roth conversions and hybrid investment vehicles often position themselves to save hundreds of thousands of dollars in future taxes — especially when compounded over decades of growth.

The 20s and 30s: Building a Financial Foundation

Younger adults in their 20s and 30s are at the start of their financial journeys. Many are focused on building careers, paying off student loans, and saving for milestones like buying a home or starting a family.

While retirement may seem far away, starting early with IRS Roth accounts and compound growth strategies creates a foundation that leads to massive tax savings and financial freedom later in life. Regular contributions to a 401(k), Roth IRA, or similar vehicles can pave the way to a future with guaranteed lifetime income and tax-efficient withdrawals.

Collaboration Is Key: A Call to Action

Collinson emphasized that middle-class Americans can’t shoulder the retirement burden alone. She called for a collaborative effort among policymakers, employers, and the financial services industry to strengthen the nation’s retirement infrastructure.

Her proposed solutions include:

Expanding access to workplace retirement plans for small businesses and gig workers.
Improving financial literacy through employer and community programs.
Enhancing social safety nets to support caregivers and older adults.

Adding to these solutions, financial professionals also advocate for broader education around Roth conversions, guaranteed income planning, and tax optimization strategies — all of which can significantly change the trajectory of middle-class retirement.

Key Takeaways for Every Age Group

Regardless of age or income level, the message from the Transamerica study is clear: retirement planning must evolve alongside life’s stages. Here’s how each generation can take action now:

20s–30s: Start early, automate savings, and use Roth accounts for long-term tax-free growth.
40s: Balance current expenses with tax-advantaged strategies to protect future wealth.
50s: Maximize contributions, explore IRS-qualified to Roth conversions, and secure guaranteed lifetime income for you and your spouse.
60s–70s: Prioritize healthcare and long-term care planning while optimizing tax-free retirement income.

Final Thoughts

The middle class represents the backbone of the American economy — but their retirement security is at risk without coordinated action. The path to financial independence depends on understanding how needs evolve with age and proactively adapting strategies at every stage.

Whether you’re just starting out, raising a family, or enjoying your golden years, remember: retirement isn’t a destination — it’s a lifelong journey of planning, saving, and adapting. And with proper guidance, guaranteed lifetime income, massive tax savings, and IRS-qualified accounts converted into Roths can ensure your retirement years are not just comfortable — but secure and fulfilling for both you and your spouse.