Retirement Confidence Falls as Housing and Healthcare Costs Squeeze American Workers
A new survey from the Employee Benefit Research Institute found that worker confidence in retirement fell 6 percentage points to 61% in 2026. Rising housing costs are affecting 7 in 10 workers' ability to save, and nearly 6 in 10 say healthcare expenses are cutting into their retirement contributions.
More Americans are doubting their ability to retire comfortably, and the numbers back it up.
The 2026 Retirement Confidence Survey from the Employee Benefit Research Institute and Greenwald Research found that overall confidence in having enough money for retirement fell this year. Worker confidence dropped 6 percentage points to 61%. Retiree confidence fell 5 percentage points to 73%.
The survey also 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% in 2025.
The reasons are not hard to find. Rising housing costs are affecting 7 in 10 workers' ability to save for retirement. Nearly 6 in 10 say healthcare expenses are cutting into their retirement contributions.
The shift away from traditional pensions toward 401(k) plans and Social Security has placed more of the retirement burden on individuals. That burden is getting harder to carry.
For 2026, the annual contribution limit for 401(k), 403(b), governmental 457 plans, and the Thrift Savings Plan increased to $24,500, up from $23,500 in 2025. IRA contribution limits rose to $7,500 from $7,000. Workers aged 50 and older can make additional catch-up contributions.
Financial advisors say the survey results are a call to action, not a reason for despair. Reviewing credit, paying down high-interest debt, and making sure you are capturing any employer 401(k) match are practical first steps. For those who feel behind, the increased contribution limits for 2026 offer a chance to catch up.
The survey was conducted by the Employee Benefit Research Institute and Greenwald Research and released in May 2026.
