Inflation Still Weighs Heavily on Retirees

Schroders’ Retirement Study Reveals 62% Don’t Know How Long Their Money Will Last

NEW YORK--(BUSINESS WIRE)--While the impact of tariffs on inflation remains to be seen, Schroders 2025 US Retirement Survey reveals a growing number of retired Americans are worried about the impact of rising prices on their savings. Just two in five retirees (40%) believe they have saved enough money for retirement, nearly half (45%) report their expenses in retirement are higher than they expected, and most (62%) admit they have no idea how long their savings will last.

The top five concerns plaguing retired Americans in 2025 include (% at least slightly concerned):

• 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%)

Notably, 84% of retired Americans wish they could 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.”

With higher-than-expected healthcare costs top of mind, retirees report spending an average of 15% of their total monthly income on healthcare costs such as insurance premiums, prescription costs, and out-of-pocket expenses. More than half of all retirees surveyed (58%) said that they expected Medicare to have covered a greater portion of their healthcare expenses.

Nearly One-in-Five Retirees “Struggling” or Worse

Amid rising costs, economic uncertainty and financial woes, the percentage of retirees who are concerned that financial stress will impact their overall health, ticked higher from 33% in 2024 to 36% in 2025. Notably, one-in-four retirees (25%) say they have lost sleep worrying about their financial situation, and 27% spend an hour or more per day worrying about money.

When survey participants were asked to describe their financial situation, their responses revealed the toll insufficient savings has on a significant portion of retirees:

• 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”

Despite the financial challenges and stress impacting many retired Americans, 64% don’t work with a professional financial advisor, and 44% don’t have a plan in place for estimating expenses, determining how much income is needed, and developing 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,” said Boyden. “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.

For more information on the Schroders 2025 U.S. Retirement Survey, visit here.

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