Half of Retirees Report Expenses Higher Than Expected: Schroders
The impact of rising prices continues to trouble retirees. According to Schroders’ 2026 US Retirement Survey, nearly half (49%) of retirees report that their expenses in retirement are higher than they expected, and more than half (58%) don’t know how long their savings will last.
“Retirees are fighting the affordability crisis with a fixed pool of assets and no second chances.”
Deb Boyden, Schroders
On average, retirees report spending 16% of their total monthly income on healthcare costs, including insurance premiums, prescription costs, and out-of-pocket expenses, and the majority (58%) say that they expected Medicare to cover a greater share of their healthcare costs.
Notably, 64% of retirees wish they had done more planning prior to retirement, and just 32% currently work with a financial advisor.
“Retirees are fighting the affordability crisis with a fixed pool of assets and no second chances,” said Deb Boyden, Head of US Defined Contribution at Schroders. “What often gets overlooked is that investing for retirement and investing in retirement are fundamentally different challenges. Once you retire, protecting against losses is just as important as capturing gains. With lifespans extending well into the 80s and beyond, your savings may need to work for you for three or four decades.”
According to the Schroders survey data released today, the top five concerns weighing on retired Americans in 2026 include (% at least slightly concerned):
• Inflation lessening the value of assets (90%)
• Higher than expected healthcare costs (87%)
• A major market downturn significantly reducing assets (81%)
• Not knowing how to best take retirement income and/or draw down assets (69%)
• Outliving assets (68%)
Amid all these economic pressures, the survey reveals that retirees appreciate the gift of time. Despite their financial distress, the vast majority of retirees (79%) say retirement is a time of freedom to pursue their passions/hobbies, and 68% say leaving the workforce provided an opportunity to try things they’ve never done before.
When survey participants describe their current financial situation:
• 4% are “living the dream”
• 37% are “comfortable”
• 35% are “not great but not bad”
• 19% are “struggling”
• 5% are “living the nightmare”
Against this backdrop, more than a third of retirees (36%) are concerned that financial stress will impact their overall health, 28% have lost sleep worrying about their financial situation, and 27% spend an hour or more per day worrying about money.
The Schroders 2026 US Retirement Survey was conducted by 8 Acre Perspective among 1,500 US investors nationwide ages 30-79, including 382 retired Americans. The survey was conducted from March 20 to April 15 in 2026. The complete Living in Retirement: Schroders US Retirement Survey can be found here.
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Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.