American Retirement Confidence Drops as Housing Costs and Healthcare Squeeze Savings

American confidence in retirement savings fell again in 2026, with only 64 percent of people saying they feel confident about having enough money to retire comfortably, according to the annual Retirement Confidence Survey by the Employee Benefit Research Institute and Greenwald Research.

Worker confidence dropped six percentage points to 61 percent. Retiree confidence fell five points to 73 percent. Both groups cited concerns about potential government changes to the U.S. retirement system, with four in five workers and seven in ten retirees saying they worry about such changes.

Housing costs are a major barrier. Seven in ten workers said rising housing expenses are affecting their ability to save for retirement. Nearly six in ten said healthcare costs are cutting into their retirement contributions.

Fewer than three in five workers reported having sufficient emergency savings, down from 64 percent in 2025.

Financial advisors say the shift from traditional pensions to individual 401(k) accounts has placed more responsibility on workers to manage their own retirement savings, often without adequate financial education or employer support.

The survey found that workers who have calculated how much they need to retire are more confident than those who have not. Financial experts recommend starting with a retirement savings estimate, ensuring you receive any employer 401(k) match, and paying down high-interest debt before increasing retirement contributions.

Social Security remains a key income source for most retirees. The survey found that retirees rely on Social Security for a larger share of their income than they expected before retiring.