After a year of market volatility and elevated living costs, many Americans are entering the new year uncertain about their financial futures.
About four in 10 American adults say they aren’t confident they’ll have enough income and assets to last through retirement or believe they won’t be able to retire at all, according to Pew Research (1).
Consider Carrie. Now 62, she spent nearly four decades working as a project manager in commercial construction, steadily building her retirement savings through consistent 401(k) contributions, employer matches and IRA rollovers. By her late 50s, she was ahead of schedule. Retiring at 65 felt achievable (2).
That confidence has been tested. While inflation has cooled from its post-pandemic highs, the costs most relevant to those nearing retirement, including healthcare, housing, insurance and utilities, remain elevated. Rising Medicare premiums and lingering questions about Social Security’s long-term solvency have further complicated the picture, forcing Carrie to rethink a timeline she once considered settled.
Nick Maggiulli, founder of the Of Dollars and Data blog and author of The Wealth Ladder, says those approaching retirement should focus on what remains within their control.
“There’s always something you can do,” he told Moneywise.
A record number of Americans are reaching retirement age at a time when the economic backdrop has become increasingly uncertain. An estimated 4.18 million people are expected to turn 65 in 2025, the largest wave in U.S. history (3).
That volatility has been fueled in part by policy shifts. In early April, President Donald Trump rolled out tariffs targeting key U.S. trade partners, rattling markets and sending the S&P 500 close to bear market territory, or nearly 20% below recent highs (4).
Uncertainty is also building around monetary policy. Trump is expected to name a new Federal Reserve chair to replace Jerome Powell when his term ends in May, a decision that Granite Bay Wealth Management chief investment officer Paul Stanley has described as “the big uncertainty” for investors heading into 2026 (5).
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For retirees, these forces are colliding with changes to everyday cash flow. While Social Security benefits will rise by 2.8% in 2026, about $56 more per month on average, higher Medicare costs could blunt that increase. Standard Medicare Part B premiums are set to climb to $202.90 per month in 2026, up from $185 in 2025, and those premiums are typically deducted directly from Social Security checks (6,7).
For Carrie, that kind of uncertainty is forcing many near-retirees to run the numbers again and realize that even modest increases in costs can have an outsized impact once paychecks stop.
Despite how it can feel, Maggiulli says nearing retirement doesn’t mean you’re stuck sitting on the sidelines, watching your savings rise and fall with every market swing. Taking a more conservative and diversified approach, he says, can help protect what you’ve already built without trying to guess what the market will do next.
One place to start is with bonds and, more specifically, which bonds you own. While many people know bonds are meant to add stability, Maggiulli says those approaching retirement may want to lean toward shorter-term options, like Treasury bills or notes that mature within a few years. These tend to be less sensitive to interest-rate changes than long-term bonds, meaning they’re less likely to take a hit if rates rise.
He also suggests looking at municipal bonds, particularly those issued by your home state. The income from these bonds is often exempt from federal taxes and, in some cases, state taxes as well, which can help stretch retirement income further. That said, they do carry some risk, which varies by state, so it’s worth doing your homework or talking it through with a tax professional.
But perhaps most importantly, Maggiulli says retirees should focus on the things they can control and stop stressing over the rest.
“We can control how we invest our portfolios, how we spend our money, how we spend our time, and much more,” he said. “Figure out an approach that allows you to sleep soundly at night and then stop worrying about what else might come.”
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Pew Research (1); Buzzfeed (2); Protected Income (3); BBC (4); Fox Business (5); Social Security (6); CMS (7).
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.