Despite a changing of the guard at the White House and the prospects for increased inflation, American workers and those already in retirement are confident they will have enough money to live comfortably during their golden years.
That’s according to the 35th annual Retirement Confidence Survey, conducted by the Employee Benefit Research Institute (EBRI) and Greenwald Research. It’s the longest-running survey measuring worker and retiree confidence in America.
The polling of American adults aged 25 and older took place between January 2, 2025 and February 3, 2025, before President Trump announced the sweeping tariffs that pummeled the stock market. However, the survey does reflect a period in which the Department of Government Efficiency was slashing jobs and overhauling federal agencies, including Social Security and Medicare.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Of the roughly 2,700 survey respondents, 67% of workers and 78% of retirees indicated they think they will have enough money to live a comfortable retirement. Confidence among retirees is up from 74% last year. Among workers, it stayed the same as last year.
“Workers and retirees generally appear to be remaining confident about their retirement prospects,” said Craig Copeland, director, Wealth Benefits Research, EBRI.
Social Security, Medicare changes spark concerns
Despite the optimism, there are concerns among workers and retirees about the changes to the U.S. retirement system, namely Social Security and Medicare. Of those surveyed, 79% of workers and 71% of retirees are somewhat concerned about the impact changes will have on their benefits.
Social Security is a big area of worry, with 60% of workers and 80% of retirees concerned the changes could reduce their Social Security benefits. Under DOGE, the Social Security Administration has laid off workers, closed field offices and reduced some in-person services. The SSA’s website has also faced intermittent outages that have impacted some beneficiaries.
It’s not surprising that changes to Social Security are causing anxiety among retirees. Of the surveyed Americans in retirement, 66% of retirees said Social Security is a major source of income, compared to the 36% of people still working, who expect that it will be a major source of income when they retire someday. Almost 8 out of 10 retirees report worrying about a reduction to their Medicare benefits.
Spending and saving worries grow
Survey respondents are also concerned about their ability to spend and save because of inflation, the volatile stock market and rising housing costs. About 7 in 10 workers indicated they are worried they may have to make substantial cuts to spending.
The cost of healthcare is also hurting workers' savings rate, with more than half surveyed pointing to it as something that is negatively impacting their savings. Meanwhile 2 in 5 retirees indicated health expenses have been higher than expected in retirement.
As a result, more workers indicated they expect to retire later and continue to work in retirement. While the median expected retirement age for workers is still 65, the survey found a growing number expect to work until 70 and beyond.
Retirees remain hopeful despite current challenges
There are lots to keep workers and retirees up at night but this survey shows people are keeping those fears at bay.
While some workers and retirees may not be able to spend as much as they like or may have to work a little longer than planned, they are confident they can live a comfortable retirement even as the stock markets whipsaw between highs and lows.
Related content
-
Original Medicare vs Medicare Advantage Quiz: Which is Right for You?Quiz Take this quick quiz to discover your "Medicare Personality Type" and learn whether you are a Traditionalist, or a Bundler.
-
Ask the Editor: Capital Gains and Tax PlanningAsk the Editor In this week's Ask the Editor Q&A, Joy Taylor answers questions on capital gains tax rates and end-of-year tax planning
-
Time Is Running Out to Make the Best Tax Moves for 2025Don't wait until January — investors, including those with a high net worth, can snag big tax savings for 2025 (and 2026) with these strategies.
-
Original Medicare vs Medicare Advantage Quiz: Which is Right for You?
Quiz Take this quick quiz to discover your "Medicare Personality Type" and learn whether you are a Traditionalist, or a Bundler.
-
Time Is Running Out to Make the Best Moves to Save on Your 2025 Taxes
Don't wait until January — investors, including those with a high net worth, can snag big tax savings for 2025 (and 2026) with these strategies.
-
4 Smart Ways Retirees Can Give More to Charity, From a Financial AdviserFor retirees, tax efficiency and charitable giving should go hand in hand. After all, why not maximize your gifts and minimize the amount that goes to the IRS?
-
My Adult Child Was Laid Off. Can We Discuss It Without Ruining the Holidays?We asked mental health and financial experts for advice.
-
3 Year-End Tax Strategies for Retirees With $2 Million to $10 MillionTo avoid the OBBB messing up your whole tax strategy, get your Roth conversions and charitable bunching done by year's end.
-
'Politics' Is a Dirty Word for Some Financial Advisers: 3 Reasons This Financial Planner Vehemently DisagreesYour financial plan should be aligned with your values and your politics. If your adviser refuses to talk about them, it's time to go elsewhere.
-
For a Move Abroad, Choosing a Fiduciary Financial Planner Who Sees Both Sides of the Border Is CriticalWorking with a cross-border financial planner is essential to integrate tax, estate and visa considerations and avoid costly, unexpected liabilities.
-
15 Costly Drugs Will Get Medicare Price Cuts in 2027: Will You Save?The Centers for Medicare & Medicaid Services extended a safety net to older Americans by announcing significant price reductions on 15 high-cost prescription drugs, effective in 2027.
