Retirement Confidence Slips for Older Americans
Retirement jitters are heating up for older Americans as confidence slips into long-term financial security.
According to a new study by CNO Financial Group, 32% of middle-income adults ages 50 to 85 say their confidence in their retirement plans has decreased in the past year. Another 41% question whether they will have enough money to live comfortably.
Together, the findings point to a growing mix of financial concerns, 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,” said Scott Goldberg, president of consumer affairs at CNO Financial Group, in the report. “This economic climate is challenging their sense of preparedness.”
The discomfort is not limited to the CNO survey. A recent Pew Research Center study found that nearly 4 in 10 US adults say they are not confident they will have enough money and assets to last them through retirement, and nearly a quarter report they are “very confident” about their financial preparedness. For adults under 65, confidence levels are even lower.
Growing financial concerns extend beyond saving for retirement
As the traditional retirement age becomes less and less defined, the pressure to keep saving — and uncertainty about when work will actually end — is fueling widespread financial stress. Almost half of those surveyed (44%) said they felt more worried about their finances than last year. Those who have not yet retired are twice as likely as those who have retired to report increased anxiety.
At the same time, many workers feel that they are lagging behind. According to the most recent Federal Reserve’s Economic Well-Being of US Households report, which shows survey data collected in 2024, about 35% of non-retired adults say their retirement income is on track – down from 40% in 2021.
The decline in confidence is also reflected in daily incomes. About one-third of respondents (34%) said they felt less confident in their ability to pay for common expenses such as housing, groceries and utilities compared to last year.. That share rises to 48% among those with less than $50,000 in invested assets, highlighting how disproportionately high costs hit middle-income households. Prices of essential items remain well above pre-pandemic levels, as food prices have risen by around 24% and house prices have risen slightly since 2020.
Women, in particular, report lower levels of self-esteem. Almost a quarter say they don’t feel confident they will have enough to live comfortably in retirement – almost twice the share of men – indicating income and savings gaps that can leave women at greater financial risk later in life.
Concerns about the sustainability of large government programs are increasing concerns. More than four in 10 respondents said they feel some Social Security will be there when they need it — a concern that comes as the latest economic outlook from the Congressional Budget Office projects that the program’s trust fund will run out in 2032, which could trigger automatic benefit cuts unless Congress intervenes. About half expect Medicare benefits to be cut.
At the same time, many seem to underestimate the potential health costs as they age: About half of respondents believe that Medicare will fully cover long-term care, even though coverage is limited.
“As financial confidence declines, middle-income Americans need to reevaluate their retirement, savings strategies and long-term care plans,” Goldberg noted in the report. “Important steps to reduce risk and improve financial security include seeking professional guidance, diversifying retirement income sources and using valuable products such as annuities and long-term care insurance.”
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