Retirement Confidence Falls as Inflation and Housing Costs Squeeze American Workers
The 2026 Retirement Confidence Survey found that only 64 percent of Americans feel confident about their retirement savings, down from the previous year. Worker confidence dropped 6 points to 61 percent. Rising housing costs and healthcare expenses are the top reasons workers say they cannot save more.
American workers are less confident about retirement than they were a year ago, and rising costs are the main reason.
The 2026 Retirement Confidence Survey, conducted by EBRI and Greenwald Research, found that only 64 percent of Americans feel confident they will have enough money to retire comfortably. That is down from the previous year. Worker confidence specifically dropped 6 percentage points to 61 percent. Retiree confidence fell 5 points to 73 percent.
Fewer than three out of five workers said they have enough savings to cover an emergency. Rising housing costs are a problem for 7 in 10 workers. Healthcare expenses are a barrier for nearly 6 in 10.
Four out of five workers and 7 out of 10 retirees said they are worried about potential government changes to the U.S. retirement system.
For 2026, the annual contribution limit for 401(k), 403(b), and similar plans has increased to $24,500, up from $23,500. IRA contribution limits rose to $7,500. Workers aged 60 to 63 can now make catch-up contributions of up to $11,250 in employer-sponsored plans.
Inflation is adding to the pressure. 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. The Federal Reserve held interest rates steady at 3.5 to 3.75 percent at its March meeting, making rate cuts less likely in the near term.
