Saving for retirement is getting harder

For nearly half of the U.S. population, saving for retirement is becoming more of a dream than a reality.

A new study released Tuesday by GoBankingRates finds that 42% percent of Americans will retire “broke” with less than $10,000 saved.

TIAA President and CEO Roger W. Ferguson Jr. told FOX Business’ Maria Bartiromo that the increase in life expectancy for the average American provides a challenge for retirement savings.

“Life spans are increasing and so there's what's called longevity risk that's affecting all of us. So, the average person now is about 65, is going to soon find himself or herself living to be 80, 85 and that's going … to increase the risks they have to deal with,” Ferguson said.

The majority of Americans are not covered by retirement plans and have not accumulated enough money in their savings, according to Ferguson.

“First, people are going to have to save more. Secondly, individuals are probably going to have to get used to this fact that some of this increased life span, they may have to work a little longer than they originally planned which is not necessarily a bad thing. It could be a very good thing,” he said.

TIAA, a leading financial services provider, has more than $900 billion in assets under management. Ferguson says less people are participating in a retirement plan that provides them a potential income for life.

“The way the private sector has done that is through annuities, and there aren't enough annuitizations opportunities being taken off in society,” he said during an interview on FOX Business’ “Maria Bartiromo’s Wall Street Week.”