While 64% of Americans feel confident in their ability to retire comfortably, the figure is a reported drop from last year, finds a 2026 Retirement Confidence Survey from the Employee Benefit Research Institute (EBRI) and Greenwald Research.
The sentiment of living comfortably in retirement dropped six percentage points for workers, to 61%, while retirement confidence among seniors fell five percentage points to 73%. This is likely due to increasing financial strain on participants, rising costs, and mounting concerns over the future of Social Security and Medicare, said Craig Copeland, director of wealth benefits research at EBRI.
“Retirement confidence has clearly softened this year and the data show why,” Copeland stated. “Americans are contending with a mix of immediate financial pressures and long-term uncertainty. Many workers are struggling with debt, inflation and rising housing and health care costs, while retirees are increasingly worried about the future of Social Security and Medicare. Together, those pressures are making it harder for people to feel secure about their retirement.”
Debt, healthcare expenses remain major barriers
As households struggle to compete with rising costs, debt remains a major hurdle in saving for the short- and long-term. Sixty-five percent of workers in the survey list debt as a problem for their household, with one-quarter describing it as a major hindrance. Half of workers have credit card debt, and close to one in three have over $25,000 in non-mortgage debt. Over half of workers (three in five) and three in 10 retirees say this debt has impacted their ability to save or live comfortably in retirement.
At the same time, climbing healthcare costs are straining individuals before and during retirement, EBRI notes in its findings. Nearly six in 10 workers say the cost of healthcare is hurting their ability to save for the future, and two in five retirees report higher healthcare expenses than initially anticipated.
These expenses are only expected to climb further. Recent findings from HealthView Services’ shows that despite legislative efforts to address rising expenses, health-related cost inflation is expected to remain higher with a projected long-term inflation rate of 5.8%.
As alarms over Social Security insolvency mount, workers report feeling concerned over possible shifts to the U.S. retirement system. According to the findings, seven in 10 retirees and four in five workers are concerned the government will make changes to the system, while about half of workers and six in 10 retirees believe the future value of Social Security and Medicare will decline.
Given their fears, two-thirds of workers expressed interest in a Social Security bridge annuity that would provide income until age 70, and more than four in five workers would possibly purchase a guaranteed monthly income product with retirement savings.
Others expect to retire later or keep working throughout retirement. Close to one-quarter of workers adjusted their target retirement age in 2025, with most moving it later, reported EBRI.
The 2026 Retirement Confidence Survey was conducted online from Jan. 2 through Jan. 28, 2026, among 2,544 Americans ages 25 and older. The survey included a general population sample of 2,052 Americans, including 1,007 workers and 1,045 retirees, as well as an oversample of 492 caregiver respondents.