Key Takeaways
- Inflation is squeezing Americans’ confidence in their retirement plans, a recent Fidelity study found.
- Seventy percent of retirees surveyed say rising costs of living have eaten into their savings.
- If they could go back in time, nearly half of retirees say they would have started saving sooner, and about a fifth say they would have prepared for inflation.
As a record number of Americans near retirement age in 2025, inflation is squeezing confidence in their retirement plans.
While two-thirds of Americans in their retirement-planning years say they are confident about their retirement prospects, that number is down seven points from a year ago, amid worries about rising costs of living, according to a recent Fidelity study.
More than two-thirds, or 70%, of current retirees surveyed said rising costs of living have eaten into their savings, with health care representing one of the largest sources of expenses in retirement. Most pre-retirees said they are concerned about health care costs, with the average American expected to spend upward of $165,000 on health care during retirement, up 5% from a year ago.
Americans not yet in retirement expect they may need to be more self-reliant when it comes to retirement income compared to current retirees, amid worries about whether Social Security funds could run out. Over 60% of pre-retirees are uncertain their retirement savings will last, according to Fidelity.
Looking back, two-thirds of retirees said they would advise others to start saving for retirement as soon as possible—even in small increments. If they could go back in time, almost 40% of today’s retirees say they would start saving sooner, and about a fifth say they would’ve prepared for rising costs and inflation, according to the study.