A new poll of U.S. retirees identifies widespread and growing concerns about the effects of inflation on their financial prospects after working — especially regarding the high cost of health care and the limited amount of support from states and federal governments.
Nearly half (45%) of respondents to Schroders’ 2025 U.S. Retirement Survey report that their expenses in retirement are higher than they expected, and 62% acknowledge that they have “no idea” how long their savings will last. Related, just 2 in 5 retirees believe that they have saved enough money to last their lifetime.
“Rising prices on essentials like housing, food and healthcare have significantly diminished the purchasing power and financial security of retirees,” Deb Boyden, head of U.S. defined contribution at Schroders, said in a statement. “The uncertainty that’s currently plaguing so many retirees is a poignant reminder of the value of proper planning, products and personalized advice.”
Despite the financial challenges affecting many retired Americans, 64% don’t work with a professional advisor. Likewise, 44% don’t have a plan for estimating expenses, determining how much income is needed and developing an investment strategy to meet their goals.
“As pension plans continue to be replaced by defined contribution plans like the 401(k), the importance of being proactive in saving and planning for retirement can not be overstated,” Boyden said.
Health Care Cost Concerns
According to the survey, retirees report spending an average of 15% of their total monthly income on health care costs such as insurance premiums, prescription costs and out-of-pocket expenses. In addition, 58% of respondents said that they expected Medicare to have covered a greater portion of their health care expenses.
This year, the percentage of retirees concerned that financial stress will affect their overall health once again ticked higher, increasing from 33% in 2024 to 36%. Some 25% of retirees say they have lost sleep worrying about their financial situation, and 27% spend an hour or more per day worrying about money.
Few Are ‘Living the Nightmare’
Asked to assess their overall financial situation across five potential responses, 39% reported that their situation as “not great but not bad.” Just 5% said they are “living the dream,” however, with 3% saying they are “living the nightmare.” That leaves 37% feeling “comfortable” and 16% who are “struggling.”
The top five concerns plaguing retired Americans in 2025 all grew in prevalence relative to 2024. These include inflation lessening the value of assets (cited by 92% in 2025 versus 89% in 2024); higher than expected health care costs (86% versus 85%); a major market downturn significantly reducing assets (80% versus 76%); not knowing how to best take retirement income (71% versus 69%); and outliving assets (70% versus 68%).
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