An overwhelming majority of older workers in the US are feeling the financial pressure as inflation and tariff concerns force a fundamental rethinking of retirement, according to new survey findings.
The Retirement Reality Check report from LiveCareer, based on responses from 878 US workers aged 50 and older, found that 91% say inflation or tariffs have impacted their retirement plans.
Three-quarters of respondents in the LiveCareer survey said they are delaying retirement due to recent market volatility – a figure that underscores how deeply economic uncertainty has taken root in the long-term financial planning of older Americans.
The data arrives against a backdrop of worsening consumer confidence. The latest reading of the University of Michigan's headline sentiment index fell to a record low of 47.6 in April – a 10.7% drop from March – as one-year inflation expectations climbed to 4.8%. The decline was driven largely by concerns tied to the Iran conflict, which sent energy prices surging and pushed the Consumer Price Index to a 3.3% annual rate in March.
That pressure is showing up in paychecks, too. Average weekly earnings fell 0.9% in March after accounting for inflation – the steepest monthly decline since mid-2022 – according to an analysis of federal data as reported by the Wall Street Journal.
For those already approaching retirement age, the squeeze is having real consequences. The LiveCareer survey found that 61% of respondents are regularly withdrawing from retirement accounts to cover current expenses, while 30% do so occasionally for specific needs. Just 8% said they are holding off and preserving funds for later.
In a recent preview of its "How America Saves 2026" report, Vanguard said 6% of workers in its plans took a hardship withdrawal in 2025, compared to 4.8% in 2024 and roughly 2% before the pandemic.
Only 9% of older workers in the LiveCareer survey said inflation and tariff concerns have had little or no effect on their retirement outlook. Among the rest, 45% said they are rethinking their entire retirement plan, while 46% have made smaller adjustments.
Healthcare costs topped the list of retirement fears, cited by 55% of survey respondents as their biggest worry. Forty-nine percent said they fear outliving their savings, while 30% named stock market instability as a major concern. Just 2% of respondents said they have no financial worries about their future at all.
Forty-one percent said they have already altered their investment strategy in response to market instability, while just 8% said they are staying the course with no changes.
Scott Bishop, a wealth advisor at Presidio Wealth Partners in Houston, said the results align with what many advisors are observing firsthand.
"Inflation has quietly turned retirement savings into a backstop for everyday living," he said. "When six in ten workers over 50 are already tapping retirement accounts, the issue isn't just higher prices – it's that long-term assets are being used for short-term survival, fundamentally changing the risk dynamics of retirement."
Bishop pointed to sequence-of-returns risk – the hazard that forced withdrawals during market downturns can permanently damage a portfolio, even if long-term average returns appear sound – as a growing planning concern. He argued that stress-testing retirement portfolios against scenarios involving higher inflation, early bear markets, and sustained withdrawals has become a necessity rather than a precaution.
Scott Van Den Berg of Century Management in Austin, Texas, said he's seeing the same thing "in real time." Beyond raising prices, he says inflation is changing behavior among clients in their 50s and 60s, some of whom are tapping retirement accounts earleir than expected just to keep pace with day-to-day expenses.
"The bigger issue is this: retirement is lasting longer, and the old 60/40 stock-bond mix may not hold up the same way in a world of stickier inflation and higher rates," Van Den Berg said. "Bonds aren’t providing the same stability or protection they once did, especially with longer duration risk."
At Century, he said more time is being spent helping clients protect purchasing power by tilting part of their portfolios toward real assets like energy, materials, and select industrials, as well as focusing more on durable, dividend-paying companies.
"It’s less about chasing returns and more about making sure their money can still do its job 10 to 20 years from now," Van Den Berg said.
Not all advisors are seeing that urgency in clients' behavior. Jeffrey Judge, a financial planner at Chesapeake Financial Planners in Forest Hill, Maryland, said he hasn't seen clients making adjustments to retirement accounts, and his team isn't telling them to make changes based on recent inflation or tariff pressures.
"Clients have become more anxious about retirement, but none are changing their approach or strategy," he said.
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