American Retirement Confidence Drops as Inflation and Housing Costs Bite
The 2026 Retirement Confidence Survey found that only 64 percent of Americans feel confident they will have enough money for a comfortable retirement, down from the prior year. Worker confidence fell 6 percentage points to 61 percent. Rising housing costs and healthcare expenses are the top reasons workers say they cannot save more.
American confidence in retirement savings has fallen again, according to the 2026 Retirement Confidence Survey from the Employee Benefit Research Institute and Greenwald Research. Only 64 percent of Americans said they feel confident they will have enough money to live comfortably in retirement, down from the previous year.
Worker confidence took the sharpest hit, dropping 6 percentage points to 61 percent. Retiree confidence also fell, declining 5 percentage points to 73 percent.
The survey found that 4 in 5 workers and 7 in 10 retirees are worried the government will make changes to the U.S. retirement system. Fewer than 3 in 5 workers said they have enough savings to cover an emergency expense, down from 64 percent in 2025.
Rising housing costs are affecting 7 in 10 workers' ability to save for retirement. Nearly 6 in 10 workers said healthcare expenses are cutting into their retirement contributions.
The results come as inflation returned to 3 percent territory in early 2026. The Consumer Price Index rose 3.3 percent over the 12 months ending in March 2026, driven largely by a 21.2 percent spike in gasoline prices tied to U.S.-led military action against Iran.
Financial advisors say the survey results underscore the importance of starting retirement savings early and taking full advantage of employer matching contributions. For 2026, the annual contribution limit for 401(k) plans rose to $24,500, up from $23,500 in 2025. IRA contribution limits increased to $7,500.
Workers who are behind on retirement savings are encouraged to review their current contributions, reduce high-interest debt, and consult a financial advisor about catch-up strategies.
