Americans are saving more money for retirement on paper, yet their confidence that these savings will suffice has decreased. The latest survey from the Employee Benefit Research Institute (EBRI) revealed that only 64% of Americans feel secure they can live comfortably throughout retirement, marking a notable decline from the previous year as financial pressures mount.
This drop in confidence affects both workers and retirees. Worker confidence fell by six percentage points to 61%, while retiree confidence decreased by five points to 73%. The survey attributes the growing unease to a combination of high inflation, increasing debt loads, rising health care and housing costs, and concerns over potential adjustments to retirement policies like Social Security and Medicare.
Financial strain extends beyond long-term planning; it weighs heavily on day-to-day living. About 65% of workers identified household debt as an issue, with one in four considering it a major problem. Credit card debt affects half of the workforce, and nearly a third carry over $25,000 in non-mortgage debt, complicating efforts to build retirement savings.
Worries over the future of the retirement system also loom large. Seven in ten retirees and 80% of workers expressed fears that government changes could affect their benefits. This uncertainty contributes to the disconnect between increased savings and feelings of financial security, with fewer than half the workers and only half the retirees rating their household finances as very good or better.
EBRI’s comprehensive survey included over 2,500 respondents and is the longest-running measure of its kind. It highlights how today’s economic challenges and policy anxieties are shaping Americans’ retirement outlook, blending immediate financial burdens with long-range concerns.