Retirement confidence slips as Americans grapple with rising costs and policy fears

Retirement confidence among Americans has declined in 2026, as financial pressures and uncertainty around key government programs weigh more heavily on both workers and retirees.

According to the latest Retirement Confidence Survey from the Employee Benefit Research Institute and Greenwald Research, 64% of Americans now say they feel confident about having enough money to live comfortably in retirement, a drop from the previous year. The annual survey, conducted in January, highlights growing anxiety tied to inflation, debt, healthcare expenses and the long-term stability of Social Security and Medicare.

Confidence fell across the board. Among workers, the share expressing confidence dropped six percentage points to 61%, while retirees saw a five-point decline to 73%.

“Retirement confidence has clearly softened this year and the data show why,” said Craig Copeland, director of wealth benefits research at EBRI. “Americans are contending with a mix of immediate financial pressures and longterm uncertainty. Many workers are struggling with debt, inflation and rising housing and health care costs, while retirees are increasingly worried about the future of Social Security and Medicare. Together, those pressures are making it harder for people to feel secure about their retirement.”

Concerns about potential changes to the U.S. retirement system remain widespread. Four in five workers and roughly 70% of retirees said they are worried about government action affecting retirement programs. Confidence in the future value of Social Security and Medicare benefits has also weakened, with only about half of workers and 60% of retirees believing those benefits will maintain their current value.

Overall financial wellbeing

The survey also points to a decline in overall financial wellbeing with less than 40% of workers and about half of retirees rating their household finances as very good or better. Emergency preparedness has also slipped, with fewer workers and retirees saying they have sufficient savings to cover unexpected expenses compared to last year.

Debt continues to be a major hurdle, particularly for workers. Nearly two-thirds reported debt as a household issue, and one in four described it as a serious problem. Credit card balances are common, and close to one-third of workers carry more than $25,000 in non-mortgage debt. Many respondents said these obligations are limiting their ability to save or maintain financial security in retirement.

Healthcare costs are another major strain. Nearly 60% of workers said medical expenses are hindering their retirement savings, while 40% of retirees reported higher-than-expected healthcare costs. Despite this, fewer than half have estimated how much they will need for healthcare in retirement.

Housing affordability is adding to the pressure. Seven in 10 workers and half of retirees expressed concern about rising housing costs, with many saying those expenses are already affecting their ability to save.

Retirement expectations

While the median expected retirement age remains 65, more workers are pushing their timelines later or planning not to retire at all. However, retirees report a different experience, with a median retirement age of 62 and nearly half leaving the workforce earlier than planned.

The findings also reveal a gap in financial guidance. More than 40% of workers and 25% of retirees said they are unsure where to seek retirement planning advice. Although about 40% currently work with a financial advisor, many others expect to do so in the future.

Interest in guaranteed income solutions is strong. Over 80% of workers expressed interest in converting savings into a steady monthly income stream, and about two-thirds said they would consider a Social Security bridge annuity.

Despite the challenges, most retirees still describe their standard of living as good, though fewer than half rate it as very good or excellent. At the same time, two in five said their retirement spending has exceeded expectations.

“These findings underscore how retirement planning is becoming more complex for Americans across life stages,” said Lisa Greenwald, CEO of Greenwald Research. “People are not only worried about whether they have saved enough, but also about how rising costs, health care needs and policy changes could reshape retirement itself. The results show a clear need for more guidance, better planning tools and solutions that help people turn savings into lasting financial security.”