Americans are scared. And they should be.
According to the 2026 Employee Benefit Research Institute (EBRI)/Greenwald Retirement Confidence Survey, just 64% of Americans now feel confident they’ll have enough money to live comfortably in retirement. That’s down sharply from last year — and the trend line is heading in the wrong direction.
Workers are even less optimistic: Only 61% feel good about their retirement prospects, a six-point drop from 2025. Among retirees, confidence slid five points to 73%.
These aren’t abstract numbers. They’re people lying awake at night wondering if the money will last.
I’ve been covering personal finance since 1991, and I can tell you that confidence doesn’t just evaporate for no reason. It crumbles when the math stops working.
Here are six forces doing the damage right now — and the one thing you can do to fight back.
1. Debt is eating people alive
This one’s ugly. According to the EBRI survey, 65% of workers say debt is a problem for their household; 1 in 4 calls it a major problem.
Half of all workers are carrying credit card balances. Nearly 1 in 3 have more than $25,000 in non-mortgage debt.
You can’t save for a future that’s 20 years away when you’re drowning in 22% interest today. About 3 in 5 workers say their debt is actively hurting their ability to save for retirement.
If that’s you, get some free help before debt swallows your future. If you have over $15,000 of debt, National Debt Relief is one of the most respected providers of debt relief in the U.S.
They’ve helped more than 500,000 people, are A+ rated by the Better Business Bureau and also are top-rated by Top Consumer Reviews, Top Ten Reviews, ConsumersAdvocate.org and ConsumerAffairs.
2. Healthcare costs keep climbing
Nearly 6 in 10 workers told EBRI that healthcare expenses are making it harder to save for retirement. And 2 in 5 retirees said their medical costs have been higher than expected.
That tracks with what we’ve been seeing for years. A 65-year-old retiring today can expect to spend six figures on healthcare — even with Medicare. Some couples could need more than $200,000 just for medical bills.
Yet fewer than half of workers and retirees have even bothered to calculate how much they’ll need for healthcare.
That’s like boarding a plane without asking where it’s going.
3. Housing is squeezing everyone
Seven in 10 workers and half of retirees are worried that rising housing costs will damage their retirement.
Three in 5 workers say high housing costs are already hurting their ability to save. And one-third of retirees say the same thing.
Whether it’s a mortgage that hasn’t been paid off, property taxes that keep climbing, or rent that’s gone through the roof, housing is swallowing a bigger chunk of people’s budgets. There’s less left over for the 401(k).
4. Social Security anxiety is through the roof
Four out of 5 workers and 7 out of 10 retirees told EBRI they’re concerned the government will make changes to the U.S. retirement system. Only about half of workers say they’re confident Social Security and Medicare will continue paying benefits at their current value.
That fear isn’t irrational. Recent reports suggest Social Security’s trust fund could be depleted sooner than expected. And when politicians start talking about “reforms,” what they usually mean is cuts.
If your entire retirement plan depends on a government check that may shrink, you’ve got a problem.
5. Emergency savings are slipping
Here’s a number that should terrify you: Fewer than 3 in 5 workers say they have enough savings to cover an emergency expense. That’s down from 64% in 2025.
Among retirees, fewer than 7 in 10 feel prepared for a financial surprise — down from 74%.
When you can’t handle a $1,000 car repair, you’re not saving for retirement. You’re just surviving. And surviving isn’t a plan.
6. People plan to retire late — but life has other ideas
The median expected retirement age for workers is 65. But a growing share say they don’t plan to retire at all. Nearly 1 in 4 workers adjusted their retirement target last year, and most pushed it later.
Here’s the kicker: Retirees report a very different reality. Most actually retired before 65, with a median age of 62. And nearly half retired earlier than planned — often because of health issues, layoffs, or caregiving responsibilities.
You can plan to work until 70. But your body, your boss, or your aging parents might have something to say about that. That gap between expectations and reality is one of the biggest regrets new retirees report.
The simple, 3-minute fix
According to Northwestern Mutual’s 2026 Planning & Progress Study, 74% of Americans who work with a financial advisor believe they’ll be financially prepared for retirement. Among those without an advisor? Just 43%.
People with advisors also plan to retire roughly two and a half years sooner — at 63.7 versus 66.1.
Finding a qualified, fiduciary advisor used to be tough. Now it’s not.
If you have $100,000 or more in assets, SmartAsset's free advisor matching service connects you with up to three pre-screened, fiduciary financial advisors in your area. Each advisor is vetted for credentials, experience, and client satisfaction — no cold calls, no sales pressure.
Answer a few simple questions about your financial situation and goals. Get matched instantly. No cost, no obligation, and your information stays secure. Over 50,000 people matched last month.
Get Matched with 3 Vetted Advisors in 3 Minutes (Free Service)
Add a Comment