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Between streaming video, meal deliveries, and clothing subscription boxes, recurring monthly charges have shifted a significant portion of our financial decisions into autonomous territory.
But there is a striking disconnect in how Americans interact with financial automation. While we have fully embraced frictionless spending, wealth building largely remains a high-friction chore.
A new opinion survey of 1,000 Americans suggests that closing this gap may help build wealth in an era of unaffordability.
Key takeaways:
- PensionBee found that while 45% of Americans say that they don’t have enough disposable income to save for retirement, 90% pay for at least one monthly subscription.
- Redirecting just $17 a month in unused subscriptions could leave you with $25,000 by retirement.
- Americans are much more likely to automate monthly payments than saving or investment transfers.
The subscription trap
Subscriptions put spending on autopilot. Left unchecked, monthly charges can quickly become unmanageable.
PensionBee found that one in four Americans (25%) don’t know for certain how many subscription services they have.
While most (90%) have at least one subscription, one in three respondents (33%) subscribe to more than six, and a similar number (31%) spend over $100 a month on these platforms.
Relentless price hikes don’t just leave customers frustrated, but make it harder to stay on top of spending: previous research finds that subscribers pay $133 more on average for their subscriptions than they thought.
While the majority of Americans can afford subscriptions, nearly half (45%) say a lack of disposable income prevents them from saving for retirement.
What happens if I cancel my Netflix subscription?
When spending is unconscious, waste becomes unavoidable. A 2025 CNET survey found that of the average $1,080 spent per year on subscriptions, $205 goes unused.
PensionBee modeled how far that same amount could go when invested toward retirement.
PensionBee’s scenario assumes a 32-year-old worker:
- Cancels unused subscriptions worth $205 annually, roughly $17 monthly, less than the price of a standard Netflix subscription ($17.99)
- Invests the cancelled amount of $17 into an IRA or 401(k) each month
- Sees a 7% return, minus average 401(k) fees (net return: 6.15%), over a 35-year timeline
By shifting the cost of a $17 monthly subscription service into a retirement account, the average Millennial could boost their nest egg by about $25,000 by the age of 67. This move can take less than 30 minutes and net younger savers a quarter of the median U.S. household’s current nest egg, which is only $87,000.
“Preventing unnecessary charges is a no-brainer, but shifting these costs toward a retirement contribution is an easy way to boost wealth without feeling the pinch,” says Romi Savova, Founder and CEO of PensionBee. “Think of it as money already spent, and it could go a long way towards unlocking future wealth.”
