Workers are even less optimistic: Only 61% feel good about their retirement prospects, a six-point drop from 2025. Among retirees, confidence slid five points to 73%.<\/p>\n
These aren\u2019t abstract numbers. They\u2019re people lying awake at night wondering if the money will last.<\/p>\n
I\u2019ve been covering personal finance since 1991, and I can tell you that confidence doesn\u2019t just evaporate for no reason. It crumbles when the math stops working.<\/p>\n
Here are six forces doing the damage right now \u2014 and the one thing you can do to fight back.<\/p>\n
1. Debt is eating people alive<\/p>\n
This one\u2019s ugly. According to the EBRI survey, 65% of workers say debt is a problem for their household; 1 in 4 calls it a major problem.<\/p>\n
Half of all workers are carrying credit card balances. Nearly 1 in 3 have more than $25,000 in non-mortgage debt.<\/p>\n
You can\u2019t save for a future that\u2019s 20 years away when you\u2019re drowning in 22% interest today. About 3 in 5 workers say their debt is actively hurting their ability to save for retirement.<\/p>\n
If that\u2019s you, get some free help before debt swallows your future. If you have over $15,000 of debt, National Debt Relief<\/a> is one of the most respected providers of debt relief in the U.S.<\/p>\n They\u2019ve helped more than 500,000 people, are A+ rated by the Better Business Bureau and also are top-rated by Top Consumer Reviews, Top Ten Reviews, ConsumersAdvocate.org and ConsumerAffairs.<\/p>\n 2. Healthcare costs keep climbing<\/p>\n Nearly 6 in 10 workers told EBRI that healthcare expenses are making it harder to save for retirement. And 2 in 5 retirees said their medical costs have been higher than expected.<\/p>\n That tracks with what we\u2019ve been seeing for years. A 65-year-old retiring today can expect to spend six figures on healthcare \u2014 even with Medicare. Some couples could need more than $200,000 just for medical bills<\/a>.<\/p>\n Yet fewer than half of workers and retirees have even bothered to calculate how much they\u2019ll need for healthcare.<\/p>\n That\u2019s like boarding a plane without asking where it\u2019s going.<\/p>\n 3. Housing is squeezing everyone<\/p>\n Seven in 10 workers and half of retirees are worried that rising housing costs will damage their retirement.<\/p>\n Three in 5 workers say high housing costs are already hurting their ability to save. And one-third of retirees say the same thing.<\/p>\n Whether it\u2019s a mortgage that hasn\u2019t been paid off, property taxes that keep climbing, or rent that\u2019s gone through the roof, housing is swallowing a bigger chunk of people\u2019s budgets. There\u2019s less left over for the 401(k).<\/p>\n 4. Social Security anxiety is through the roof<\/p>\n Four out of 5 workers and 7 out of 10 retirees told EBRI they\u2019re concerned the government will make changes to the U.S. retirement system. Only about half of workers say they\u2019re confident Social Security and Medicare will continue paying benefits at their current value.<\/p>\n That fear isn\u2019t irrational. Recent reports suggest Social Security\u2019s trust fund could be depleted sooner than expected<\/a>. And when politicians start talking about \u201creforms,\u201d what they usually mean is cuts.<\/p>\n If your entire retirement plan depends on a government check that may shrink, you\u2019ve got a problem. It\u2019s worth understanding how Social Security is changing in 2026<\/a> so you can plan accordingly.<\/p>\n 5. Emergency savings are slipping<\/p>\n Here\u2019s a number that should terrify you: Fewer than 3 in 5 workers say they have enough savings to cover an emergency expense. That\u2019s down from 64% in 2025.<\/p>\n Among retirees, fewer than 7 in 10 feel prepared for a financial surprise \u2014 down from 74%.<\/p>\n When you can\u2019t handle a $1,000 car repair, you\u2019re not saving for retirement. You\u2019re just surviving. And surviving isn\u2019t a plan.<\/p>\n 6. People plan to retire late \u2014 but life has other ideas<\/p>\n The median expected retirement age for workers is 65. But a growing share say they don\u2019t plan to retire at all. Nearly 1 in 4 workers adjusted their retirement target last year, and most pushed it later.<\/p>\n Here\u2019s the kicker: Retirees report a very different reality. Most actually retired before 65, with a median age of 62. And nearly half retired earlier than planned \u2014 often because of health issues, layoffs, or caregiving responsibilities.<\/p>\n You can plan to work until 70. But your body, your boss, or your aging parents might have something to say about that. That gap between expectations and reality is one of the biggest regrets new retirees report<\/a>.<\/p>\n The simple, 3-minute fix<\/p>\n According to Northwestern Mutual\u2019s 2026 Planning & Progress Study<\/a>, 74% of Americans who work with a financial advisor believe they\u2019ll be financially prepared for retirement. Among those without an advisor? Just 43%.<\/p>\n People with advisors also plan to retire roughly two and a half years sooner \u2014 at 63.7 versus 66.1.<\/p>\n Finding a qualified, fiduciary advisor used to be tough. Now it\u2019s not.<\/p>\n