Retirement report card: Why so many Americans say they’re not making the grade

If retirement planning came with a report card, a good portion of Americans wouldn’t rush to hang it on the refrigerator at home. From financial uncertainty to rising living costs, more people are finding that their savings and confidence are slipping just as they near the finish line.

Nearly one in three Americans (32%) give themselves a C or below for financial readiness, according to a recent survey from F&G, a life insurance and annuity provider. This honest assessment of unease in an uncertain economy underscores that this widening gap between confidence and reality isn’t just about numbers – it’s about mindset.

For financial professionals, these results are more than a reflection of consumer anxiety – they’re a call to action. The gap between perception and preparation is widening, and these professionals are uniquely positioned to help clients close it.

A moving target for today’s retirees

Retirement is no longer a fixed milestone – instead, it’s a moving target. As inflation, market volatility and recession fears persist, many Americans are rethinking what retirement should look like and when it could or should begin. In fact, the survey also found that 70% of pre-retirees over 50 are considering or delaying their retirement, while nearly a quarter (23%) are definitely pushing back their retirement date – up from 14% in 2024.

But financial pressures tell only part of the story. For many, work provides more than income; it informs their identity, gives purpose, and a sense of connection with others. That is why nearly a third of retirees (29%) say they’re considering returning to work.

I can relate. When I chose to “unretire” myself a few years ago, it wasn’t out of financial necessity but out of a desire for challenge and fulfillment, and many Americans feel the same. They’re not just asking “can I afford to retire?” but “what will give my life meaning once I do?”

For financial professionals, that shift is significant. It means clients need help planning not just for income but for purpose, designing retirement plans that are as emotionally satisfying as they are financially sustainable.

The guidance gap & opportunity it creates

While a struggling student might look for a tutor to help prep for a big exam – the same should be done among individuals planning for retirement; seeking expert insight from a financial professional.

However, nearly half (47%) of Americans over 50 are not working with a financial professional. This number is slightly up from 43% just a year ago. Among Generation X, it’s even higher – with 54% saying they aren’t working with one.

Clients want stability and guidance but aren’t taking the proper steps to get it. There is a major opportunity for financial professionals to step in and “tutor” individuals with value-driven, holistic guidance. With this proper guidance, financial professionals can help more Americans earn straight A’s in retirement by aligning financial plans with the kind of life clients truly want.

Bridging this gap requires more than market insight. It requires empathy, education, and a more holistic approach to retirement planning.

From “C” Plans to “A” Outcomes

So how can financial professionals help clients rewrite their retirement report cards? It starts with reframing the conversation.

1. Lead with a holistic assessment. Go beyond the numbers to understand clients’ emotional and lifestyle priorities. Financial professionals can also picture themselves as “life coaches,” guiding clients to define what success in retirement truly looks like.
2. Reinforce the value of guaranteed lifetime income. Especially in volatile markets, steady income – such as through a fixed indexed annuity – can restore confidence and peace of mind.
3. Revisit plans. Encourage clients to revisit their strategy regularly. Retirement readiness should be an ongoing process that evolves with markets and life stages.
4. Incorporate fulfillment into planning. Help clients envision a life after work that’s both financially and personally sustainable.

The “report card” Americans are giving themselves reflects a deep desire for clarity, control, and confidence. It also underscores the growing importance of professional advice.

For financial professionals, the message is clear: clients need help turning uncertainty into action. By combining financial strategy with empathy and education, these professionals can help more Americans earn an “A” in retirement.

Chris Blunt is the chief executive officer at F&G Annuities & Life, and currently the board chair for LL Global, the non-profit parent company for LIMRA and LOMA.