Retirement Outlook Stable, but Inflation and Policy Risks Remain, Report Finds
Americans remain largely confident in their retirement prospects, even as inflation, health care costs, and concerns about Social Security persist, according to the 2025 Retirement Confidence Survey.
The survey, recently released by the Employee Benefit Research Institute and conducted in partnership with Greenwald Research, found that 67% of workers and 78% of retirees feel confident they will have enough money to comfortably retire. Retiree confidence rose from 74% in 2024, while worker confidence remained steady.
Now in its 35th year, the Retirement Confidence Survey is the longest-running of its kind. The 2025 study included responses from 2,767 Americans ages 25 and older, including an oversample of Black workers and retirees.
Despite the overall optimism, the report highlights persistent worries about changes to the U.S. retirement system. Seventy-nine percent of workers and 71% of retirees said they were concerned about potential policy changes, including reductions in Social Security and Medicare benefits.
Among those who expressed concern, 60% of workers and 80% of retirees cited possible cuts to Social Security as their top worry.
Inflation also remains a key issue. Eighty-one percent of workers and 66% of retirees said the rising cost of living could make it harder to save or sustain their income in retirement. Healthcare expenses were another common concern, with 56% of workers and 35% of retirees saying the cost of care impacts their financial readiness.
The survey also looked at the sources of income Americans rely on or expect to use in retirement. Social Security remains the dominant source, with 87% of workers expecting to use it and 94% of retirees receiving benefits. Workplace savings plans, such as 401(k)s, were cited by 84% of workers and 54% of retirees. Seventy-eight percent of workers and 73% of retirees reported personal savings and investments.
Other notable findings include:
- 72% of workers expect to earn income from working in retirement, but only 29% of retirees report doing so.
- 68% of workers and 59% of retirees use or expect to use individual retirement accounts.
- 63% of workers and 64% of retirees rely on defined benefit pension plans.
- 60% of workers and 35% of retirees report relying on Roth IRAs.
- 56% of workers expect to use home equity, real estate, or rental property for income, compared to 33% of retirees.
- 55% of workers plan to use a product that guarantees a monthly income for life, while only 33% of retirees currently do.
When it comes to financial advice, most Americans prefer working with professionals. Fifty percent of survey respondents said they trust financial professionals most for retirement guidance. By comparison, only 10% said they trust social media, 9% trust artificial intelligence tools, and 7% trust influencers or podcasters.
Still, workers seek information from a range of sources. Forty-three percent rely on family and friends, 36% use online resources, and 34% work with a personal financial advisor. Eleven percent reported using AI tools like ChatGPT.
Craig Copeland, director of wealth benefits research at the Employee Benefit Research Institute, said in a press release that Americans are confident but cautious.
"Workers and retirees generally appear to be remaining confident about their retirement prospects," he said. "However, they are concerned that federal government programs for retirees such as Social Security and Medicare will be cut."
About the Author: Allen Jones is the director of communications and event marketing for TEXPERS. He joined the Association in 2017. Before TEXPERS, he worked in the news media industry, producing content for newspapers, magazines, and online publications and leading newsrooms as an editor and publications manager. [email protected]