Retired Americans reveal feeling nervous about the impact of rising prices on their retirement, just weeks after President Donald Trump announced sweeping tariffs on imports.
Initial findings from Schroders’ 2025 US Retirement Survey reports that 62% of retired Americans are uncertain with how long their retirement savings will last, and another 45% say they have higher retirement expenses than initially expected, including day-to-day costs and healthcare expenses.
As a result, close to all (84%) of retirees say they wish they could protect their savings from the impacts of inflation.
“Rising prices on essentials like housing, food, and healthcare have significantly diminished the purchasing power and financial security of retirees,” explains Deb Boyden, head of U.S. Defined Contribution at Schroders. “The uncertainty that’s currently plaguing so many retirees is a poignant reminder of the value of proper planning, products and personalized advice for a comfortable retirement.”
Retired Americans also reported slightly heightened concerns over retirement assets and healthcare costs, compared to 2024. This year, 92% of retirees say they worry over inflation lessening the value of assets, up from 89% in 2024. Eighty-six percent are concerned over increased healthcare costs—up from 85% last year—and 71% are unsure on the best way to take retirement income and/or draw down assets, an increase from 69% in 2024.
As they age, retirees report spending an average of 15% of their total monthly income on healthcare costs like insurance premiums, prescription costs, and out-of-pocket expenses. Prior to retiring, these individuals said they believed Medicare would cover most of their healthcare expenditures.
Studies show that Americans severely underestimate the amount they’ll spend on healthcare costs in retirement. A January report by the Center for Retirement Research (CRR) at Boston College found that nearly two-thirds of pre-retired investors anticipate spending at least $1,220 below the $8,600 annual estimate in costs. Only 27% of respondents imagine they’ll need long-term care in retirement.
Well over half (64%) of retirees in Schroders’ study said they don’t work with a financial advisor, possibly explaining why many miscalculate their initial expectations of expenses. An additional 44% don’t have a plan for estimating expenses, determining how much income they’ll need, or developing an investment strategy for their goals.
Boyden notes that as pension plans are replaced by defined contribution (DC) plans, retired Americans will need to be more proactive with their planning. Partnering with a financial advisor can help retirees better prepare for the long-term.
“The path to closing the retirement savings gap is paved with better planning, products, and access to advice,” said Boyden.
Schroders’ 2025 US Retirement Survey interviewed 1,500 U.S. investors, including 373 retired Americans.
SEE ALSO:
More U.S. Working Adults Allocated Cash to Retirement Savings in 2022: Schroders
Americans Miscalculate Healthcare Expenses
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.