New Dayforce Report Uncovers America’s Growing Retirement Divide

Rhea-AI Summary

Dayforce (NYSE: DAY) released The Retirement Divide on November 18, 2025, analyzing anonymized client data from 2021–2024 to map retirement savings disparities across income, gender, race and generation.

Key findings: high earners (>$150,000) increased participation and contributions while workers earning <$50,000 saw participation fall from 58% to 52.9% and savings rates drop from 4.9% to 4.6%. In 2024 participation was 84.6% for white workers vs 61.1% Latino and 68.2% Black; loan usage among Black and Latino participants was 26.4% vs 14.9% for white participants. Gen Z participation rose to 68.7%.

Positive

• Gen Z participation rose to 68.7% (2024)
• Gen Z total contributions increased 24% since 2022
• High earners (>$150k) saw participation and contributions increase

Negative

• Workers earning <$50k: participation fell from 58% to 52.9%
• Overall savings rate for <$50k declined from 4.9% to 4.6%
• 2024 participation gap: white 84.6% vs Latino 61.1% and Black 68.2%
• Higher loan usage for Black/Latino participants: 26.4% vs white 14.9%

Workers earning $150,000 to $250,000 contribute nearly 13× more toward retirement each year than those earning under $50,000

MINNEAPOLIS and TORONTO, Nov. 18, 2025 (GLOBE NEWSWIRE) -- Dayforce, Inc. (NYSE: DAY; TSX: DAY), a global human capital management (HCM) leader that makes work life better, today released The Retirement Divide, a new report that shows deep and growing disparities in how American workers are saving for retirement.

The research examines trends in retirement savings rates, employee and employer contributions, participation in employer and individual retirement plans, and loan use among the full-time U.S. workforce from 2021 to 2024. It offers unprecedented and highly detailed insights into how gender, race and ethnicity, age, and income have a profound impact on the retirement savings of workers.

“We believe this research should serve as both a wake-up call and a call to action,” said Jason Rahlan, Global Head of Sustainability & Impact at Dayforce, Inc. “For far too many people, the promise of a secure retirement is drifting further out of reach. Our hope is that these findings will be used to help millions more workers make progress towards the secure retirement they’ve worked hard for and deserve.”

Key findings

• High earners pull ahead as lower-income workers fall behind: While participation rates, total contributions, and overall savings rates increased since 2022 for workers making more than $150,000, they all declined for those making less than $150,000. Most dramatically, workers making less than $50,000 saw the steepest drops – with participation in an employer or individual retirement plan moving from 58% to 52.9%, and their overall savings rates dropping from 4.9% to 4.6%.
  
• Retirement participation gap widens for women: The gap in participation between men and women increased to 3.9 percentage points (79.9% vs. 76%) since 2021.
  
• Racial disparities persist in retirement participation and loan usage: In 2024, 84.6% of white workers participated in an employer or individual retirement plan, compared to only 61.1% of Latino workers and 68.2% of Black workers. Also in 2024, 26.4% of Black and Latino plan participants had an active loan from one of their accounts, compared to just 14.9% of white plan participants.
  
• Gen Z makes meaningful progress in saving: Since 2022, participation rates, savings rates, and total contributions for full-time Gen Z workers increased at a faster rate than for all other generations – with participation rising from 64% to 68.7%, savings rates improving from 6.6% to 7.2%, and total contributions rising by 24%.
  

“The Retirement Divide reveals for the first time the true state of retirement savings in America,” said Matt Bahl, Vice President for Workplace Financial Health at the Financial Health Network. “Every American should have the opportunity to retire securely and with dignity, and this report shines a light on the large and growing inequalities that lie at the core of our nation’s retirement insecurity crisis.”

Additional Information

• Read the full report
• Read the fact sheet
• Learn more on the blog
  

Report Methodology
Dayforce assessed anonymized data from clients who opted into a program where Dayforce can use their data for research purposes. Dayforce implements technical and operational safeguards to help protect the data from unauthorized disclosure and ensure it is not possible to reidentify individuals. The data points used from these records are in aggregate and include gender, race and ethnicity, age, and annual gross income. 401(k), 403(b), 457(b), traditional and Roth IRA, ESOP, and pensions were the types of retirement plans included in this research.

For a more detailed methodology, please contact allison.hacker@dayforce.com.

About Dayforce
Dayforce makes work life better. Everything we do as a global leader in HCM technology is focused on enabling thousands of customers and millions of employees around the world do the work they're meant to do. With our single AI-powered people platform for HR, Pay, Time, Talent, and Analytics, organizations of all sizes and industries are benefiting from simplicity at scale with Dayforce to help unlock their full workforce potential, operate with confidence, and realize quantifiable value. To learn more, visit dayforce.com. 

Media Contact
Allison Hacker
+1 425-785-8276
allison.hacker@dayforce.com

FAQ

What did Dayforce (DAY) report in The Retirement Divide on November 18, 2025?

Dayforce reported 2021–2024 retirement data showing growing savings gaps by income, race, gender and generation, including key participation and contribution figures.

How did retirement participation change for workers earning under $50,000 in the Dayforce report?

Participation fell from 58% to 52.9%, and savings rates dropped from 4.9% to 4.6%.

What racial participation gaps did Dayforce (DAY) find in 2024?

In 2024, participation was 84.6% for white workers, 61.1% for Latino workers, and 68.2% for Black workers.

What does the Dayforce report say about loan usage among retirement plan participants in 2024?

The report shows 26.4% of Black and Latino participants had active plan loans in 2024 versus 14.9% of white participants.

How might The Retirement Divide affect investor perception of Dayforce (DAY)?

The report highlights customer data insights and ESG-related workforce disparities that could influence investor views on Dayforce's data capabilities and sustainability reporting.