Retirement Confidence High Amid Social Security, Medicare Concerns

The 35th annual Retirement Confidence Survey (RCS) by the Employee Benefit Research Institute (EBRI) and Greenwald Research reveals that a majority of U.S. workers and retirees maintain confidence in their retirement savings, with 67% of workers and 78% of retirees feeling prepared for a comfortable retirement. However, there is growing concern regarding potential reductions to Social Security and Medicare benefits, with 79% of workers and 71% of retirees expressing worries over changes to these federal programs.

Social Security remains the primary source of retirement income, with 87% of workers expecting to rely on it and 94% of retirees currently receiving benefits. Notably, retirees report Social Security as a major income source at nearly double the rate expected by workers. This reliance underscores the anxiety around potential benefit cuts that could impact retirement financial security.

Economic factors like inflation, volatile stock markets, and rising housing costs compound the difficulty for workers trying to save for retirement. Approximately 70% of workers are concerned about the need to reduce spending, and over half cite healthcare costs as a significant barrier to saving. Retirees also face higher than anticipated healthcare expenses, which can affect their post-retirement financial stability.

Despite these challenges, most retirees feel their retirement lifestyle aligns with their expectations, with 70% indicating they are living as envisioned. However, many express cautious spending habits due to fears of outliving their savings. The survey also highlights a gap in retirement planning resources: while 80% of retirees and 75% of workers believe they have access to educational support, a sizable portion remain uncertain about where to seek financial advice or planning guidance.

The RCS findings underscore the importance of workplace and federal retirement programs and the need for accessible financial education and planning. Ongoing concerns about Social Security, Medicare, inflation, and healthcare costs signal areas where insurers, policymakers, and financial advisors must engage to support retirement readiness in the evolving U.S. economic landscape.