An increasing number of retirees are worried about the impact of inflation on their savings, with 45% saying their expenses are higher than they expected, and 62% reporting they have no idea how long their savings will last.
The effect of tariffs on inflation remains to be seen, but the Schroders 2025 U.S. Retirement Survey found plenty of worries. The top five concerns for retired Americans in 2025 are:
Inflation lessening the value of assets (92%, up from 89% in 2024)
Higher than expected healthcare costs (86%, up from 85%)
A major market downturn significantly reducing assets (80%, up from 76%)
Not knowing how to best take retirement income and/or draw down assets (71%, up from 69%)
Outliving assets (70%, up from 68%)
Importantly, 84% of retirees want to better protect their savings from the effects of inflation.
“Rising prices on essentials like housing, food, and healthcare have significantly diminished the purchasing power and financial security of retirees,” said Deb Boyden, Head of U.S. Defined Contribution at Schroders. “The uncertainty that’s currently plaguing so many retirees is a poignant reminder of the value of proper planning, products and personalized advice for a comfortable retirement.”
Higher-than-expected healthcare costs are a major concern, with retirees spending an average of 15% of their total monthly income on healthcare costs including insurance premiums, prescriptions, and out-of-pocket expenses. Among retirees surveyed, 58% had expected that Medicare would cover more of their healthcare expenses.
More retirees fear that financial stress will impact their overall health, going from 33% in 2024 to 36% in 2025. And 25% say they have lost sleep worrying about their financial situation, while 27% spend an hour or more per day worrying about money.
Survey participants were asked to describe their financial situation:
5% say they are “living the dream”
37% are “comfortable”
39% are “not great but not bad”
16% are “struggling”
3% are “living the nightmare”
Although many retirees face financial challenges and stress, 64% don’t work with a professional financial advisor, and 44% lack a plan for estimating expenses, calculating how much income is needed, and formulating an investment strategy to meet their goals.
“The path to closing the retirement savings gap is paved with better planning, products, and access to advice,” Boyden said. “As pension plans continue to be replaced by defined contribution plans like the 401k, the importance of being proactive in saving and planning for retirement can not be overstated. It’s one of the greatest challenges and opportunities facing plan participants and the firms striving to provide solutions that can improve their retirement readiness.”
About the Survey
The Schroders 2025 US Retirement Survey was conducted by 8 Acre Perspective among 1,500 US investors nationwide ages 29-79, including 373 retired Americans. The survey was conducted from March 25 to April 17 in 2025.
