Key Takeaways

• One-third of Americans fear AI could disrupt careers or reduce earnings before retirement, with Gen Z being the most worried.

• The cost of living, healthcare, and housing are viewed as the biggest threats to retirement plans.

• TIAA says workers facing income risk should protect employer-matched retirement contributions first.

Artificial intelligence is reshaping the workplace and, according to a new survey from the TIAA, adding another layer to Americans’ retirement worries. Many fear the technology could take their job or cut their pay, limiting how much they’re able to save for retirement while rising living costs are already squeezing household budgets.

Here’s what the survey found, and what one expert says workers can do now if they’re worried their income could be disrupted.

1 in 3 Americans Worry AI Could Hurt Their Earnings Before Retirement

One-third of the 1,000 Americans ages 18 to 65 surveyed by TIAA said they are extremely or very concerned that AI will disrupt their career or reduce their earning potential before they can retire comfortably. For workers still building their savings, a job loss or pay cut can mean smaller contributions to a 401(k) or other retirement account, along with lost investment growth those contributions could have earned.

Concern is highest among younger generations. Forty-two percent of Gen Z respondents say they are extremely or very concerned that AI could disrupt their career or reduce their earning potential, compared with 33% of millennials and 28% of Gen X and baby boomers.

Lower-income households are more likely to share those worries. Thirty-six percent of respondents from households earning under $75,000 are extremely or very concerned, compared with 31% of those from households earning between $75,000 and $150,000 and 27% of those from households earning more than $150,000.

Why This Matters

AI has been linked to job losses, which can affect more than a worker’s current paycheck. Lost income can mean smaller retirement contributions, missed employer matches, and less money left invested to compound over time.

The Retirement Concerns That Rank Above AI

Despite many people worrying about it, AI still ranks near the bottom of the pressures the survey tested.

Opinions are divided. Eighteen percent of respondents said the rise of AI in the workplace is a major threat to their retirement plans, while 22% view it as a minor one. Another 41% say AI is neither a threat nor an opportunity, and 19% see it as an opportunity.