Retirement Confidence Is Plunging: Why Half of Americans Doubt Savings Will Last
Even though most Americans (61%) now have a financial strategy in place, their confidence in their long-term security is plummeting.
A recent New York Life survey found that just over half of Americans (52%) are confident their retirement savings will last a lifetime, marking a significant decrease from the nearly three-quarters (73%) that felt confident in 2025.
Check Out: 3 Retirement Pressures Mounting in Trump's Economy
You’re Savvy: 14 Subtly Genius Things All Wealthy People Do With Their Money — That You Should Do, Too
The drop in confidence comes despite more Americans creating financial plans, monitoring the economy and adjusting their investment strategies. Here's why retirement confidence is falling and what experts say can help Americans feel more secure about their financial future.
Why Americans Are Losing Confidence in Their Retirement Savings
There are several factors contributing to Americans' concerns that their retirement savings won't last.
"Economic uncertainty can affect how people feel about retirement, but confidence is shaped by more than what's happening in the market," said Sean Madgett, VP and head of planning & practice solutions at New York Life.
He believes a lack of a robust financial plan and professional guidance are major contributors to these feelings of unease.
"When people are facing rising costs or changing priorities, it's easy to question whether they're making the right financial decisions," Madgett said. "That's why having a financial strategy and someone to help you evaluate choices and stay focused on your long-term goals can make a meaningful difference when uncertainty arises."
The Majority of Americans are Suffering a Planning Crisis
The survey found that just 19% of Americans consider themselves prepared for retirement, highlighting a significant gap between planning and true readiness.
Madgett recommends asking yourself several key questions when evaluating your retirement outlook:
What kind of retirement do you want to live?
What financial responsibilities will continue?
What tradeoffs are you willing to make today to achieve your long-term goals?
"Taking the time to define those priorities with the support of a financial professional and revisiting them as life evolves will help turn retirement planning from a one-time exercise into an ongoing process that better reflects your needs," he said.
More Effort Doesn't Always Lead to More Confidence
Surprisingly, the survey found that Americans are doing more, not less, to manage their finances:
61% have a financial strategy, a 3% rise from the previous year
79% have taken steps to remedy their financial concerns, including changing their financial strategy (31%) and keeping up with what's happening in the economy (29%)
37% plan on changing their investment portfolio or strategy this year
Despite those efforts, many Americans still feel uncertain about their retirement prospects.
"Taking action is important, but confidence isn't built by checking off financial tasks," Madgett said. "It's built by understanding why you're making financial decisions and how they support your goals, both short-term and long-term."
According to Madgett, confidence comes less from monitoring markets and making frequent adjustments and more from understanding how financial decisions support long-term priorities.
"Confidence grows when financial decisions are grounded in your personal priorities and supported by an approach that can adapt as life changes," Madgett said.
Americans Who Work With Financial Advisors Feel More Secure
While many Americans remain uncertain about their retirement outlook, the survey found much higher confidence among those who work with financial professionals.
According to the findings, 86% of Americans who work with a financial professional and own protection products are confident they'll have enough for retirement, compared to the 43% of people going it alone.
"Working with a financial professional provides more than technical expertise," Madgett said. "It gives you a trusted partner to help navigate important financial decisions over time."
Life doesn't always unfold according to plan, and market volatility or major life events can make it tempting to react emotionally.
"Having someone who can provide perspective, help evaluate tradeoffs and keep your decisions aligned with your long-term goals can make it easier to stay the course and feel more confident about your financial future," Madgett said.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
More From MoneyLion: