Confidence in retirement savings has plunged to its lowest level in nearly a decade. Just 61% of workers now feel very or somewhat confident they’ll have enough money to live comfortably through retirement. That’s down from 67% last year and a peak of 72% in 2021. Retirees aren’t faring much better—73% express similar assurance, a five-point drop from 2025. These figures come from the Employee Benefit Research Institute’s 2026 Retirement Confidence Survey, the longest-running poll of its kind, fielded online from January 2 to 28 among 2,544 Americans aged 25 and older.
Craig Copeland, EBRI’s director of wealth benefits research, pins the blame on a toxic mix of pressures. “Americans are contending with a mix of immediate financial pressures and long-term uncertainty,” he said. “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.”
Inflation tops the list of worries. A quarter of less-confident workers directly blame it and the rising cost of living for their pessimism. Overall, 64% of Americans report confidence in affording a comfortable retirement—still a majority, but slipping. And it’s not just talk. Fewer than three in five workers say they have enough savings for an emergency expense, down from 64% in 2025. Retirees? Under seven in 10, a decline from 74%.
The Wall Street Journal highlighted how this aligns with broader sentiment. Consumer confidence fell in April, per a University of Michigan survey, as people fixate on everyday costs despite stock market gains. Groceries sting retirees hardest. Many report living expenses far exceeding expectations.
Debt compounds the pain. Sixty-five percent of workers call it a household problem; one in four labels it major. Half carry credit-card balances. Nearly one-third owe more than $25,000 in non-mortgage debt. About three in five workers and three in 10 retirees say debt hampers saving or comfortable living in retirement.
Health care costs loom large. Nearly six in 10 workers say they’re curtailing retirement savings to cover them now. Two in five retirees admit actual expenses exceed forecasts. Fewer than half of either group has crunched the numbers on future medical bills.
Housing adds fuel to the fire. Seven in 10 workers and half of retirees fear rising costs will derail plans. Three in five workers and one-third of retirees already feel pinched, saving less as a result.
Entitlements breed deeper doubt. Seven in 10 retirees and four in five workers worry about government changes to the retirement system. Confidence in Social Security and Medicare delivering equal future value? Barely half for workers, six in 10 for retirees—both down year-over-year.
But. Not all surveys paint the same bleak picture. Fidelity’s March 2026 study found 72% of Americans expect to retire on their own terms, with confidence up despite short-term worries like inflation (36%) and bills (35%). Those with financial plans are twice as likely to feel secure—83% versus 38%. Working with advisors helps too.
Earlier polls echo the trend. Charles Schwab’s 2025 survey of 1,000 401(k) participants pegged inflation as the top obstacle for 57%, down just a point from 2024. Yet savers held firm on contributions, trimming personal spending instead. Vanguard’s preview noted 91% of workers over 50 say inflation or tariffs reshaped plans, per a LiveCareer report of 878 respondents.
CNO Financial’s February survey of middle-income adults 50-85 uncovered 32% feeling less confident year-over-year. Inflation led concerns at 27%, followed by outliving savings and Social Security cuts. “Inflation directly affects purchasing power, and middle-income Americans tend to feel it most,” said analyst Gary Goldberg.
TIAA’s 2025 poll showed only 37% see on-time retirement as realistic. Thirty percent doubt covering daily expenses lifelong. Some even eye lotteries or luxury handbags—10% consider it viable. Desperate measures.
BlackRock’s 2025 Read on Retirement flagged median savings rates dipping to 10% from 12% in 2022, as costs climb. Two-thirds want plan education on inflation and volatility to save more.
Recent X posts amplify the buzz. Employee Benefit News noted confidence slipping as families juggle priorities. CarePath Financial warned the math is breaking—inflation erodes core assumptions.
Workers’ footing weakens further. Fewer than two in five rate household finances as very good. Savings adequacy drives confidence most, but inflation lurks. Only 58% of workers and 71% of retirees feel sure they’ll match rising costs in retirement.
Plan participation still correlates strongly with optimism—DC plans, DB pensions, IRAs all boost odds. Caregivers, oversampled this year, face extra strain but mirror broader trends.
So what now? Markets boom, yet fears dominate. Inflation may cool officially, but its shadow lingers in grocery aisles and 401(k) statements. Workers delay retirement. Retirees pinch pennies. The survey’s stark drop signals advisors must stress-test plans against real costs—not just projections. Emergency funds. Debt audits. Health-cost forecasts. Housing strategies. And relentless saving, even when it hurts.
Americans keep contributing. But belief it’s enough? That’s cracking. Fast.
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