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Why So Many Americans Don’t Feel Prepared for Retirement
By Liliana Hall MONEY RESEARCH COLLECTIVE
Rising costs and Social Security fears are shaking Americans’ retirement confidence.
Retirement jitters are intensifying for older Americans as confidence in long-term financial security slips.
According to a new survey from CNO Financial Group, 32% of middle-income adults ages 50 to 85 say their confidence in their retirement plans has declined over the past year. Another 41% question whether they’ll have enough money to live comfortably.
Together, the findings point to a growing mix of financial anxiety, inflation worries and doubts about the future of Social Security and Medicare.
“Middle-income Americans are under pressure as they navigate rising costs, market volatility and questions about the future of government programs and safety nets,” Scott Goldberg, president of CNO Financial Group’s consumer division, says in the report. “This economic environment is challenging their sense of preparedness.”
The unease isn’t limited to the CNO survey. A recent Pew Research Center study found that roughly 4 in 10 U.S. adults say they aren’t confident they’ll have enough income and assets to last throughout retirement, and only about a quarter report being “very confident” in their financial readiness. Among adults under 65, confidence levels are even lower.
Rising financial anxiety extends beyond retirement savings
As the traditional retirement age becomes less defined, the pressure to keep saving — and the uncertainty about when work will actually end — is fueling broader financial stress. Nearly half of those surveyed (44%) say they feel more anxious about their personal finances than they did a year ago. Those who have not yet retired are about twice as likely as retirees to report increased anxiety.
At the same time, many workers feel they’re already behind. According to the Federal Reserve’s most recent Economic Well-Being of U.S. Households report, which reflects survey data collected in 2024, only about 35% of non-retired adults say their retirement savings are on track — down from 40% in 2021.
The decline in confidence is also showing up in day-to-day finances. About one-third of respondents (34%) say they feel less confident in their ability to cover routine expenses like housing, groceries and utilities compared with a year ago. That share rises to 48% among those with less than $50,000 in investible assets, highlighting how unevenly higher costs are hitting middle-income households. Prices for essentials have remained significantly above pre-pandemic levels, with food prices up roughly 24% and housing prices climbing in step since 2020.
Women, in particular, report lower levels of confidence. About a quarter say they aren’t confident they’ll have enough to live comfortably in retirement — nearly twice the share of men — reflecting longstanding income and savings gaps that can leave women more financially vulnerable later in life.
Concerns about the stability of major federal programs are compounding the anxiety. More than four in 10 respondents say they feel less certain Social Security will be there when they need it — a worry that comes as a recent economic outlook from the Congressional Budget Office projects that the program’s trust fund will run out by 2032, potentially triggering automatic benefit cuts unless Congress intervenes. Nearly half also expect Medicare benefits to be reduced.
At the same time, many appear to underestimate potential health costs as they age: About half of respondents believe Medicare will fully cover long-term care, even though coverage is limited.
“As financial confidence declines, middle-income Americans need to evaluate their retirement timelines, savings strategies and long‑term care plans,” Goldberg notes in the report. “Important steps to mitigate risk and improve financial security include seeking professional guidance, diversifying retirement income sources and making use of valuable products such as annuities and long-term care insurance.”
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Liliana Hall is an Austin-based reporter for Money, where she covers a range of topics, including financial news, policy, banking, investing, passive income, financial planning and student loan debt. Passionate about accessibility and financial literacy, she’s dedicated to helping readers navigate the complexities of money management and feel empowered to make informed decisions about their financial futures. Previously, Liliana covered all angles of personal finance as a writer and editor at CreditCards.com, Bankrate and CNET. Before she ever wrote about money, she worked in a handful of newsrooms across Austin, Texas, covering everything from the Texas Legislature to SXSW and the 2019 Men’s NCAA Swimming and Diving Championships. Her work has been featured in The Daily Texan, Austin Chronicle and KUT. A Texas native, Liliana graduated from the University of Texas at Austin with a bachelor’s degree in Journalism. When she’s offline, you can probably find her paddle boarding on Lady Bird Lake, riding her moped around town or reading for her book club.