Gen X and millennials are rethinking retirement as pensions disappear

Pensions are fading, Social Security confidence is eroding, and a new survey shows two generations are scrambling to fill the gap.

A Harris Poll survey conducted on behalf of West Des Moines, Iowa-based retirement solutions company Athene found that more than eight in 10 Gen X and millennial respondents (83%) say their generation faces retirement challenges that prior generations did not encounter.

The survey, which polled 2,022 U.S. adults ages 40 to 61 with at least $100,000 in investable assets and household income of $50,000 or more, was conducted online from June 26 through July 7, 2026.

Seventy-six percent of respondents said they believe the U.S. retirement system was built for a previous generation, and nearly two-thirds (61%) said they have access to fewer guaranteed income options than their predecessors.

Social Security uncertainty compounds the picture. Sixty-three percent of survey participants said they worry that Social Security will be depleted before they are eligible to collect benefits. Advisors looking to help clients manage Social Security concerns with annuities - a strategy gaining traction as the program's long-term solvency remains politically unresolved - may find the Athene data useful in framing those conversations.

Health care costs and inflation drive planning gaps

The survey points to rising health care expenses as the dominant concern shaping how pre-retirees think about the future. Two-thirds of respondents (67%) cited health care costs as their primary retirement worry, with 62% naming inflation as a close second.

Those anxieties are translating into concrete saving barriers. Half of respondents said inflation is their top obstacle to building retirement savings. Day-to-day expenses ranked second at 39%, followed by health care costs at 32%.

Despite widespread unease, most respondents have not completed the fundamental work of retirement income planning. Only 40% said they have mapped out how to convert accumulated savings into a reliable income stream, and fewer than three in 10 (29%) said they have fully factored the duration of their retirement into their financial plan.

"Retirement savers have fewer traditional sources of guaranteed income such as pensions, while managing greater uncertainty in this economic environment," said Sean Brennan, co-president of Athene USA. "Gen X and millennials are looking for solutions to help navigate their future with confidence, flexibility and a greater sense of control over their financial futures."

Annuity awareness remains low despite broad appeal

The survey surfaces a disconnect between appetite and action when it comes to annuities. Among respondents who said they understand what annuities are, 86% found the benefits appealing, but only 23% have actually purchased one. More than half (53%) described annuities as too complex.

That gap points to a practice management opportunity for advisors. When respondents were told more about how annuities function, 80% said they would consider purchasing one.

The data aligns with a broader pattern in the industry: Gen X clients have consistently shown stronger interest in annuities than any other cohort, but remain underserved by advisors who have historically concentrated retirement income conversations closer to the transition date.

Eighty-five percent of respondents said they find the idea of guaranteed monthly income embedded in a 401(k) appealing - a figure that reflects demand for pension-like features in the defined contribution ecosystem, even as defined benefit plans continue to decline.

"Retirees need solutions that simplify their transition from saving to spending so they can confidently enjoy the retirement they worked hard for," said Rebecca Tadikonda, chief executive of Vitera.

Cautious optimism persists

The data is not uniformly bleak. Roughly 91% of respondents said they feel at least some degree of confidence in their ability to achieve financial security in retirement: 38% described themselves as somewhat confident, 32% as very confident, and 21% as extremely confident. Only 9% said they are not at all confident.

Mike Downing, co-president of Athene USA, said the findings reinforce both the appeal of guaranteed income products and the continued need to close the knowledge gap. "Annuities are a vital retirement tool that can complement savings, investments and Social Security to create a more resilient retirement plan," he said.

For advisors, the retirement income challenge facing Gen X and millennial clients requires meeting clients earlier in the planning cycle, not just at the transition point. The survey data suggests that with better education, a substantial share of pre-retirees would be receptive to guaranteed income solutions they currently overlook.

Athene, which holds approximately $473 billion in total assets as of June 30, 2026, operates retirement income and savings programs across the United States, Bermuda, Canada, and Japan.