Retirement Confidence Remains High Despite Concerns About Inflation, Social Security

EBRI research found that most Americans are confident about retiring, but 79% of retirees and 71% of workers expressed concern about changes to Social Security.

A majority of American workers and retirees both remain confident about their retirement and have concerns about inflation and potential cuts to Social Security, according to the 2025 Retirement Confidence Survey, conducted by the Employee Benefit Research Institute and Greenwald Research, released Thursday.

EBRI’s survey, conducted from January 2 through February 3, included responses from 2,767 Americans, nearly evenly split between workers and retirees.

According to the survey, 67% of workers and 78% of retirees reported being confident that they could live comfortably throughout retirement. Retiree confidence increased four percentage points year over year, while worker confidence slipped one percentage point from last year’s survey.

Surveyed workers and retirees also expressed increasing concern about changes to the retirement system, as cuts to Social Security and Medicare benefits appear likely because of the budget resolution passed by Congress earlier this month.

The budget resolution targets a significant tax cut and a sizeable decline in federal spending, which more than likely will affect federal benefits.

“If you start changing those programs that retirees are so reliant on, there’s going to be concern and therefore a lot of times these issues fall under third-rail politics,” says EBRI’s director of wealth benefits research, Craig Copeland, noting that the survey was conducted prior to the budget resolution.

Of those surveyed, 79% of workers and 71% of retirees reported being at least somewhat concerned about Social Security and Medicare, according to the study.

Further, 60% of workers and 80% of retirees said they expect changes could reduce their Social Security benefits, with 80% of retirees also concerned about a decline in their Medicare benefits, the survey found.

The concerns likely do not come as a surprise among Social Security beneficiaries aged 65 and older; 12% of men and 15% of women rely on Social Security for at least 90% of their income, according to a Social Security Administration fact sheet.

In EBRI’s study, 94% of retirees reported Social Security as a source of income, and 87% of retirees said they expect the program to serve as a source of income in retirement.

Workers also reported being troubled by market volatility and rising health care costs. According to the EBRI study, 70% of workers fear they will need to significantly reduce spending due to inflation, stock market instability and soaring housing prices.

In addition, more than half of workers said rising medical expenses are making it harder to save for retirement. Meanwhile, 40% of retirees said their health care costs in retirement are higher than they anticipated.

In response, workers reported planning to delay retirement or continuing paid work after retirement. EBRI’s study found that 20% of workers in 2024 delayed their expected retirement. Still, expectations do not always match reality, since 60% of retirees reported having left the workforce before age 65, with the median retirement age of respondents landing at 62.

Guaranteed Income Gains Attention

Amid this uncertainty, many workers are turning to guaranteed income products to help ensure financial stability in retirement.

Roughly 30% of respondents with workplace retirement plans said guaranteed lifetime income options would be a top improvement to their plan. Nearly 70% of those surveyed find it appealing if plans have default investments that include guaranteed income, according to the survey.

The study also found that while many seek advice, professional guidance remains underutilized. Fewer than half of respondents reported working with a financial adviser, though 80% of retirees and 75% of workers surveyed said they have access to helpful financial resources. At the same time, 40% of workers and 20% of retirees said they were unsure where to find trustworthy financial advice.

Despite these challenges, confidence in the financial services industry remains strong: About 70% of respondents reported they believe financial companies understand how to support them in retirement and financial planning, according to EBRI’s survey.

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