Americans saving less for retirement — that's a "warning sign," experts say.

Full-time employees reduced both their participation in 401(k) retirement plans and the amount they contribute, according to new research cited as a warning sign for long-term financial security. The pullback reflects an affordability squeeze, as workers prioritize immediate expenses over retirement savings. Lower contribution rates now could leave many Americans underfunded in retirement, particularly those in middle and lower income brackets who lack other substantial savings vehicles. The trend is significant because employer-sponsored 401(k) plans remain the primary retirement savings mechanism for most private-sector workers in the United States. Economists and retirement experts view the shift as an indicator of broader economic strain on household finances.