Savers are feeling more optimistic about retirement, but that doesn’t mean they’re more prepared, according to a new report from State Street Global Advisors.
“Savers are more optimistic about their retirement prospects now than in 2023. Yet beneath that confidence, there are real concerns…”
State Street CEO Yie-Hsin Hung
Among those surveyed, 34% of Americans earning between $40k and $60k per year are either very or extremely optimistic about their retirement finances. Americans were also, on average, more optimistic about retirement than savers in the UK, Canada, Ireland and Australia.
But there are signs that optimism might not be rooted fully in reality. Among U.S. savers, 40% said they only “know basic information” or “nothing at all” about financial matters. Savers said their top concerns were “not knowing how much savings I need” and “not being capable of covering unexpected medical costs.”
One in three respondents said they don’t have a plan for their retirement savings once retired.
Many savers also have strong concerns about inflation, the stability of Social Security and other factors that could make retirement more difficult. U.S. savers said the top barriers to retirement confidence are inflation and increased cost of living (40%), the economy (37%) and the political climate (30%).
Women are also more likely to feel less confident about retirement and to have less planning in place. While 33% of men said they feel very or extremely optimistic about retirement, only 22% of women said the same. Women were also less likely to have a plan for their savings than men (39% of women responded ‘I don’t know’ when asked what they’d do with their retirement savings versus 23% of men).
“Our 2025 global survey reveals a hopeful picture broadly: savers are more optimistic about their retirement prospects now than in 2023,” said State Street CEO Yie-Hsin Hung in a statement. “Yet beneath that confidence, there are real concerns—from the impact of inflation and the broader economic environment, to how much they need to save and how to ensure a reliable income stream in retirement.”
On the plus side, many reported planning to seek help from financial advisors when they retire, and 60% of those respondents are U.S. defined contribution plan participants. For those who have already sought advice, 71% have done so through an advisor.
Savers also said they are open to AI-generated advice. Less than one in 10 currently use a robo-advisor, but one in four would be open to doing so, and close to half would be open to it if there’s human oversight.
Advisors will need to vary their advice by generation, the report said, as concerns varied dramatically by age group. Americans over the age of 65 said they’re most concerned about inflation and medical costs, while younger adults said they’re worried about caring for elders and navigating the complexity of retirement plans.
SEE ALSO:
• Americans Report Higher Retirement Confidence, Yet Social Security Concerns Linger
• Middle Class Retirement Confidence Crisis: 1 in 3 Unsure They Will Save Enough
• Retirement Confidence Dwindling Among Workers
Corey Dahl is assistant editor with PropertyCasualty360.com. Previously, Corey was the editor of Colorado Builder magazine andS enior Manager of Content Strategy & Development at Charles Schwab.