American Retirement Confidence Drops as Housing and Healthcare Costs Bite
The 2026 EBRI Retirement Confidence Survey found that only 64% of Americans feel confident about retiring comfortably, down from 66% the previous year. Rising housing costs affect 70% of workers' ability to save, and healthcare expenses cut into contributions for 60%.
American confidence in retirement savings fell again in 2026, according to the Employee Benefit Research Institute's annual Retirement Confidence Survey.
Only 64% of Americans said they feel confident about retiring comfortably, down from 66% the year before. Worker confidence dropped 6 percentage points to 61%. Retiree confidence fell 5 points to 73%.
The survey, conducted with Greenwald Research, points to several causes. Rising housing costs affect 7 in 10 workers' ability to save. Nearly 6 in 10 workers said healthcare expenses cut into their retirement contributions.
Emergency savings are also thin. Fewer than 3 in 5 workers reported having enough savings to cover an emergency, down from 64% in 2025.
The shift from traditional pensions to 401(k) plans and Social Security has placed more responsibility on individuals to fund their own retirements. Many workers say they are not prepared for that responsibility.
For 2026, the annual contribution limit for 401(k), 403(b), and governmental 457 plans increased to $24,500, up from $23,500 in 2025. IRA contribution limits rose to $7,500 from $7,000.
A new rule for 2026 requires workers whose prior-year wages exceeded $150,000 to make all catch-up contributions as Roth contributions. Those contributions are taxed upfront but grow and can be withdrawn tax-free.
Financial advisors recommend reviewing retirement planning strategies, maximizing employer 401(k) matches, and building emergency funds of three to six months of expenses as first steps toward closing the savings gap.
