Happy retiree couple outside during the holidays
More than five years after the onset of the worst U.S. inflation outbreak in a generation, the impact of rising prices continues to trouble retirees. That's according to Schroders' 2026 US Retirement Survey, in which 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.
On average, retirees spend 16% of their total monthly income on healthcare costs, including insurance premiums, prescription costs, and out-of-pocket expenses, and the majority (58%) say 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 U.S. Defined Contribution at Schroders, a multinational wealth management firm based in London. "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."
Here are the top five concerns weighing on retired Americans this year:
- 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%)
Against this backdrop, more than a third of retirees (36%) say they 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.
On the bright side, most retirees (79%) also 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.
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