American Retirement Confidence Drops to 64% as Housing and Healthcare Costs Bite
The 2026 Retirement Confidence Survey found that only 64% of Americans feel confident about retiring comfortably, down from the previous year. Worker confidence fell 6 percentage points to 61%. Four out of five workers are worried about potential government changes to the US retirement system.
American confidence in retirement has fallen again, according to the 2026 Retirement Confidence Survey conducted by the Employee Benefit Research Institute and Greenwald Research.
Only 64% of Americans say they feel confident about retiring comfortably, a decline from the previous year. Worker confidence dropped 6 percentage points to 61%. Retiree confidence fell 5 percentage points to 73%.
Four out of five workers say they are worried about potential government changes to the US retirement system. Seven out of ten retirees share that concern.
Housing costs are cutting into retirement savings for 7 out of 10 workers. Nearly 6 out of 10 cite healthcare expenses as reducing their retirement contributions. Fewer than 3 out of 5 workers reported having enough savings to cover an emergency expense, down from 64% in 2025.
The 2026 contribution limits offer some relief for those who can take advantage of them. The annual contribution limit for 401(k), 403(b), governmental 457 plans, and the federal Thrift Savings Plan rises to $24,500, up from $23,500 in 2025. IRA contribution limits increase to $7,500 from $7,000.
Workers aged 50 and older can contribute an additional $8,000 to 401(k)-type plans as a catch-up contribution. Those aged 60 to 63 can contribute an extra $3,250 on top of that, for a total catch-up of $11,250.
Financial advisors recommend contributing as much as possible as early as possible, taking full advantage of employer matching, and using Health Savings Accounts as a supplemental retirement tool. Even part-time workers with earned income can open and fund retirement accounts, benefiting from more years of compound growth.
