Why Americans save for retirement but put off writing a will

Americans spend years building their retirement savings, but many overlook what happens to their money and other assets after they're gone. While retirement accounts and beneficiary designations are common parts of financial planning, wills and other estate documents often receive less attention.

 In fact, a 2026 survey of U.S. adults by Ethos revealed that only about one in four respondents (26%) reported having written a will. This gap highlights how preparing financially for retirement can take priority over making arrangements for the future, leaving important decisions about assets and financial responsibilities unresolved.

For many Americans, saving for retirement starts at work. Employer-sponsored 401(k) plans make it easier to set money aside regularly, often without requiring much effort once contributions are in place.

Several features make workplace retirement savings more convenient:

• Some employers automatically enroll eligible employees in retirement plans unless they choose to opt out. According to the U.S. Department of Labor, automatic enrollment can help increase participation in workplace retirement plans.
• Contributions are deducted directly from paychecks, allowing employees to save without making separate transfers.
• Employers may also match a portion of employees' contributions, giving workers an additional incentive to save.

Unlike retirement, which is tied to a recognizable stage of life, writing a will may not feel like an immediate financial priority.

People need to review their assets, decide who should inherit them, and choose someone to manage their estate, which many believe to be cumbersome. For many, the hesitation comes down to a few common reasons:

• Some believe they don't have enough money or property to need a will.
• The process can feel complicated, particularly when deciding how to divide assets, choosing an executor, or understanding legal requirements.
• Finding the time to prepare legal documents can be difficult when everyday financial responsibilities take priority.

Many people think writing a will is something they can deal with later in life, once they've built up savings or acquired property. Younger adults, in particular, may not see the need for one if they have few assets or haven't started a family.

The age gap is clear in Gallup's 2021 polling. Only 20% of Americans ages 18 to 29 reported having a will, compared with 76% of adults 65 and older.

However, a will isn't just about passing down wealth. It can help parents name guardians for their children, choose someone to manage their estate, and decide who should receive their assets. Without a will, state laws may determine how certain assets are distributed, even if that isn't what the person would have wanted.

Naming beneficiaries on retirement accounts can give people a sense that they've already taken care of what happens to their money after death. But these designations generally apply only to the specific accounts they're attached to.

For example, a 401(k) or IRA with a valid beneficiary designation typically passes to the named person, subject to applicable rules. Other assets, such as a bank account without a beneficiary designation or property owned solely by the deceased, may need to go through probate.

Without a valid will, state inheritance laws generally determine who receives assets that don't transfer through other arrangements.

Having retirement savings and named beneficiaries doesn't automatically give someone else the authority to manage your money if you become unable to do so. Even a spouse or adult child may face restrictions when accessing accounts held solely in your name.

A financial power of attorney allows you to appoint a trusted person to handle financial matters on your behalf. Depending on the authority granted, this may include:

• Paying household bills, mortgages, and other ongoing expenses.
• Managing bank accounts and handling financial transactions.
• Dealing with property, insurance, or other financial matters.

A durable power of attorney generally remains effective if you become incapacitated. Without proper authorization, families may need to seek court approval to manage a loved one's finances, according to the Consumer Financial Protection Bureau.

Saving for retirement is important, but having money set aside doesn't always mean someone has planned for every financial need.

FINRA's 2024 National Financial Capability Study found that 57% of nonretired respondents had a retirement account, while 39% of respondents had tried to calculate how much they would need for retirement.

Combining retirement savings with a will and power of attorney, when appropriate, can help families:

• Protect what they've built: Make clear who should inherit assets and who should manage the estate.
• Manage finances during illness: Give a trusted person authority to handle bills and accounts if the owner becomes unable to do so.
• Avoid additional burdens: Reduce confusion, potential legal delays, and expenses for loved ones during difficult times.

Retirement savings can help pay for later years, while wills and powers of attorney address decisions that money alone cannot settle. Considering all three as savings grow and family responsibilities change can leave fewer financial and legal questions for loved ones to resolve.

This article was written in cooperation with Amrytt