Despite Economic Uncertainty, Americans Remain Confident About Retirement, Survey Shows

A retired woman sits on her couch smiling.

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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.

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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.

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.

Donna Fuscaldo is the retirement writer at Kiplinger.com. A writer and editor focused on retirement savings, planning, travel and lifestyle, Donna brings over two decades of experience working with publications including AARP, The Wall Street Journal, Forbes, Investopedia and HerMoney.