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For many Americans, thinking of retirement doesn’t inspire visions of carefree days spent traveling and indulging in their favorite hobbies — instead, it brings up worries about being able to afford it in the first place.
According to a survey commissioned by asset management firm Schroders (1), 69% of Americans who participate in a workplace plan believe expenses including healthcare and housing costs will make retirement impossible for their generation.
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And while 74% say their workplace accounts are their most important retirement asset, 55% say they can’t allocate 10% of their salary to contributions because of other expenses. Those participating in retirement plans also think they’ll need around $1.2 million to be comfortable, but 51% say they believe they’ll have less than $500,000 at retirement, while 24% project they’ll have less than $250,000, according to the survey.
No wonder 53% of participants also said they spent at least an hour a day worrying about money.
The Bureau of Labor Statistics also reports (2) that 18.4% of the civilian workforce is made up of people over the age of 65. A 2026 AARP survey (3) found that 6% of retirees in this age group had to return to work within the past six months, largely because of economic need.
All of this illustrates how a growing number of U.S. workers and retirees are worried about the impact of rising prices on their future.
What fuels retirement anxiety
“Rising costs are forcing tough tradeoffs, and saving for retirement is often the first thing that gets deprioritized,” Deb Boyden, head of U.S. defined contributions at Schroders, said in a statement.
Here are the top five worries cited by retired Schroders respondents in their 2025 survey:
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Inflation eroding savings: 92% are worried about cost-of-living increases impacting asset value.
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Healthcare costs exceeding expectations: 86% are concerned about the cost of medical bills in retirement.
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A steep market downturn: 80% flagged a significant downturn in the market as a major worry.
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Confusion over how to draw down savings: 71% are uncertain about an optimal spending and income-generating strategy.
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Outliving their money: 70% of respondents fear longevity.
So what can workers who are nearing retirement, or even already in retirement but worried about outliving their nest eggs, do? Below are some tips that should help you sleep better at night.
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Plan for health care costs
According to Fidelity Investments’ latest health care cost report (4), a 65-year-old retiring in 2026 can expect to spend an average of $185,500 on health care and medical expenses in retirement — a 7.5% increase from the previous year.
While Medicare helps cover many health care expenses for Americans 65 and older, it doesn’t cover everything. Premiums, deductibles, copayments and services that fall outside a plan’s coverage can add up quickly, making it important to understand what you’ll be responsible for paying.
One place to start is by reviewing your existing Medicare coverage and comparing it with other available options. Depending on your health needs, budget and location, a different plan may offer a better fit.
HealthCare.com makes it easier to shop for coverage by connecting you with Medicare plan options available in your area. More than 5 million customers have used HealthCare.com to help find health insurance coverage.
Simply enter your ZIP code to explore available options. If you need help comparing coverage and prices, you can speak with a licensed insurance agent who can answer your questions and help you find a plan that fits your needs and budget.
Once you’ve chosen your coverage, HealthCare.com lets you enroll the way you want — online or over the phone, so you can complete the process however you prefer.
Diversify income and asset streams
Adding inflation-resistant assets to your portfolio can help diversify your portfolio as you move closer toward retirement. For example, Treasury Inflation Protected Securities (TIPS) are sold for 5-, 10- or 30-year terms and offer fluctuating principals over that time. At maturation, if the principal is higher than the original amount, the increased amount stands, but if the principal is equal to or lower than the original amount, the original amount stands.
Dividend-growing equities and annuities are other options to explore that can bolster fixed income sources against rising prices.
Then there’s real estate, which to many means buying a house. However, there are other options besides buying a property outright, especially for investors who don’t have the savings or desire to purchase and maintain an additional property.
Fractional real estate investing platforms, for example, allow individuals to purchase shares in rental properties without taking on the responsibilities of managing them. While returns aren’t guaranteed and real estate investments carry risks, this approach can provide another way to diversify a retirement portfolio.
Arrived, a real estate platform company backed by investors such as Jeff Bezos, helps investors get into SEC-qualified investments in real estate, including rental homes, vacation rentals and diversified funds.
In addition to any property appreciation, Arrived’s properties can help you earn a passive income stream without any of the extra work that comes with being a landlord. No midnight maintenance calls over burst pipes required.
All you have to do is sign up, then you can view a selection of vetted properties and start investing with just $100. That way, you can make sure the platform is right for you.
Once you become an investor with Arrived, you’ll have access to more than 596 properties in 67 plus markets. Eligible investors can also take advantage of Arrived’s secondary market if you want to reshuffle your portfolio.
And, for a limited time, investors can get a 2% account match when opening an account and adding $2,000 or more.
Smart withdrawal strategies
A long-standing retirement withdrawal strategy is the 4% rule, which involves withdrawing 4% of savings in the first year of retirement, then adjusting that dollar amount for inflation each year. This approach was originally designed to help a diversified portfolio last approximately 30 years, although actual outcomes depend on market performance and other factors.
But the 4% rule isn’t the only withdrawal strategy available. One alternative is a dynamic, flexible approach that adjusts spending based on changing needs, investment performance and life expectancy.
Determining which strategy makes sense can be complicated, particularly when accounting for taxes, Social Security benefits and the possibility of living longer than expected.
That’s where professional guidance may be helpful. A financial advisor can evaluate your savings, anticipated expenses and retirement goals to help develop a withdrawal strategy tailored to your circumstances.
But hiring an advisor can be a lifelong commitment, which might make or break your retirement. That’s why finding reliable advisors is crucial.
That’s where Advisor.com can come in. The platform connects you with an expert near you for free.
Advisor.com does the heavy lifting for you, vetting advisors based on track record, client ratios and regulatory background. Plus, their network comprises fiduciaries, who are legally required to act in your best interests.
Just enter a few details about your finances and goals, and Advisor.com’s AI-powered matching tool will connect you with a qualified expert best suited for your needs based on your unique financial goals and preferences.
Finding the right advisor isn’t always easy — there’s no one-size-fits-all solution. That’s why Advisor.com lets you set up a free initial consultation, with no obligation to hire, to see if they’re the right fit for you.
Once you’ve got the right financial advisor in your corner, the next step is getting a clear picture of where your money’s actually going. That starts with the basics — budgeting and tracking your spending.
Boost financial literacy
Understanding how your money works is another important part of preparing for retirement. Even with a withdrawal strategy in place, changing expenses, inflation and unexpected financial setbacks can make it difficult to stay on track.
Building financial literacy can help retirees make more informed decisions about everything from managing debt to adjusting household spending.
One practical starting point is reviewing your monthly budget and identifying where your money goes. Tracking recurring expenses, comparing costs and accounting for irregular bills can provide a clearer picture of how much income you’ll need to maintain your lifestyle throughout retirement.
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Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
Schroders (1); Google (2), (3); Fidelity (4)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
