Mass affluent Americans confident about retirement, but few have a plan: Prudential

A new global survey from Prudential Financial suggests that while a large majority of mass affluent Americans feel confident about covering essential expenses in retirement, many lack the concrete plans and professional guidance that could help turn optimism into reality.

The 2025 Global Retirement Pulse Survey, which polled 4,200 mass affluent adults across the US, Mexico, Brazil, and Japan, found that 89% of US respondents believe they will be able to cover their basic costs in retirement.

Yet, only 61% currently work with a financial advisor, and just one-third have a written retirement plan. The findings highlight what Prudential calls a “confidence paradox”: high optimism, but relatively low adoption of best practices for retirement security.

“While many people feel ready, far fewer have taken action to ensure they’re ready,” said Caroline Feeney, global head of retirement and insurance at Prudential.

The report shows that Americans are more likely than their global peers to seek professional advice – 61% in the US compared to 46% in Mexico, 35% in Brazil, and 21% in Japan. Still, nearly one in five mass affluent Americans have no retirement plan at all, and only 25% have a clearly defined withdrawal strategy for spending down assets in retirement.

Confidence is closely tied to planning and advice. Among those who work with a financial advisor, 94% are confident they can cover essential expenses, compared to 83% of those who do not. The gap is even wider for nonessential expenses: 86% of advised clients express confidence, versus 68% of those without an advisor.

Despite the overall optimism, the survey reveals that many mass affluent Americans have not factored in key risks such as inflation and rising healthcare costs. Only about half have considered these threats in their planning, even though 66% cite inflation and 62% cite healthcare as top concerns.

The study also highlights generational differences. Millennials are most likely to anticipate needing to support both adult children and parents, while Gen Xers are the least likely to have a written plan.

Across all age groups, concerns about the sustainability of Social Security and other public pension systems are prompting many to increase private savings or consider taking benefits early. In the US, 43% of mass affluent respondents said they are increasing private savings due to concerns about public pension systems, and 38% are willing to take early payouts for the same reason.

When it comes to envisioning retirement, the traditional idea of “stopping work” is shifting. Eighty-three percent of mass affluent individuals globally say they would consider working in retirement, with half interested in self-employment or freelance work. In the US, 79% would consider working past traditional retirement age.

The survey also found that most mass affluent Americans prefer guaranteed monthly income in retirement over a lump sum, yet only 29% currently use annuities as a core part of their strategy. Those who work with an advisor are twice as likely to incorporate annuities.

“As people live longer across the globe, demographic patterns and societal needs are creating two universal truths: people want income they can count on, and they need help implementing the key solutions available to get it,” said Dylan Tyson, president of retirement strategies and head of global retirement center of excellence at Prudential.