Retirement Optimism Dips Worldwide as Workers Struggle with Inflation, Reduced Education
Retirement optimism is diminishing worldwide as retirees and workers grapple with high inflation and smaller savings, reports T. Rowe Price in its annual Global Retirement Savers Study.
The research, which surveyed over 7,000 retirement savers worldwide, reports that just 31% of global respondents expect to live as well or better in retirement, with the highest levels of pessimism in Australia (23%) compared to the UK, at 38% who reported feeling optimistic for retirement. The U.S. did not rank as the most pessimistic or optimistic in this category, reports T. Rowe Price.
Americans, however, were likelier to say they’ll have to work “at least part time” in retirement compared to other countries, at 37%, but were optimistic in their ability to pay for healthcare in the future, also at 37%.
“Longer life spans, financial uncertainty, and shifting expectations are redefining retirement—transforming it from a fixed destination to an evolving journey that demands new thinking from both savers and the industry,” said Jessica Sclafani, a global retirement strategist at T. Rowe Price. “By studying these shifts in attitude, we can better understand what savers need today and empower them with the strategies and solutions that can build financial security, confidence, and optimism for the future.”
The findings also uncovered economic and financial uncertainty among retirees and workers. Exactly 50% of global respondents anticipate a recession by mid-2026, with 42% listing inflation as a top concern, followed by geopolitical events at 30% of savers and interest rates at 27%.
Economic pessimism was reported to be the highest in countries like Japan and Canada, with 62% and 56% of respondents, respectively, expecting a global recession in 2026. Other countries, like the U.S., Australia, and the UK, reported increased levels of optimism in this category.
These levels of pessimism and optimism could likely be tied to a proximity with workplace resources and financial guidance. In all surveyed countries, three of the four most relied-upon sources of advice were workplace-related, with the highest levels of reliance reported in the U.S. On the other hand, Japanese workers were likelier to self-direct their investments rather than rely on financial guidance.
“Low retirement confidence stems from workers’ inability to determine feasible retirement timelines and the associated financial requirements,” T. Rowe Price reported in its findings. “Without clear benchmarks, uncertainty undermines optimism and retirement confidence.”
Human advice also played a central role in advice for most respondents. Globally, human advisors tied with retirement plan recordkeepers as the most relied-upon source of advice, with strong reliance in Canada, the UK, and the U.S.
Workers in the U.S. and the UK were also likelier to prioritize retirement planning and setting/monitoring financial goals above investment selection and asset allocation guidance, whereas employees in Australia and Japan rated these at lower levels.
One-on-one consultations were ranked as the most helpful for retirement education, and particularly with older workers and women. Gen Z and Millennial clients instead preferred online courses and video tutorials.
Additional findings from the study can be found here.
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.