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In a period marked by economic shifts and evolving political landscapes, American workers and retirees remain optimistic about their financial futures, anticipating a comfortable retirement. This sentiment is highlighted in the 35th annual Retirement Confidence Survey conducted by the Employee Benefit Research Institute (EBRI) and Greenwald Research, which stands as the longest-running assessment of retirement confidence in the United States.
The survey, which gathered responses from adults aged 25 and older between January 2 and February 3, 2025, was conducted prior to significant market disruptions caused by newly announced tariffs. It reflects the sentiment during a time when government agencies, including Social Security and Medicare, were facing substantial job cuts and reforms.
Among approximately 2,700 participants, 67% of employed respondents and 78% of retirees expressed confidence in their ability to afford a comfortable retirement, with retiree confidence showing an increase from 74% in the previous year. For working individuals, the confidence levels remained stable.
Craig Copeland, director of Wealth Benefits Research at EBRI, noted, “Workers and retirees generally appear to be remaining confident about their retirement prospects.”
Concerns Over Social Security and Medicare Changes
Despite the optimistic outlook, significant anxiety persists regarding potential modifications to the U.S. retirement framework, particularly concerning Social Security and Medicare. The survey revealed that 79% of workers and 71% of retirees expressed apprehension about how these changes might impact their benefits.
Specifically, Social Security has emerged as a major concern, with 60% of workers and 80% of retirees fearing that reforms may lead to a reduction in their benefits. Recent actions by the Department of Government Efficiency, which included job cuts at the Social Security Administration (SSA) and the closure of field offices, have intensified these fears. Additionally, frequent outages on the SSA website have caused disruptions for beneficiaries trying to access essential services.
Concerns surrounding Social Security are particularly pronounced among retirees, where 66% rely on it as a significant income source compared to just 36% of workers who foresee it playing a major role in their future retirement income. Furthermore, nearly 80% of retirees express anxiety regarding potential cuts to their Medicare benefits.
Growing Anxiety About Spending and Saving
Respondents also articulated worries about their financial capacity to save and spend amid rising inflation, an unstable stock market, and escalating housing costs. Approximately 70% of workers indicated fear of needing to cut their expenses significantly.
Healthcare expenses are notably affecting savings rates, as over half of the surveyed individuals cited healthcare costs as detrimental to their financial stability. In tandem, 40% of retirees revealed their health-related expenditures in retirement have exceeded their expectations.
This financial climate has prompted many to consider delaying retirement. While the median anticipated retirement age remains at 65, a notable portion of workers now expect to work until 70 or even longer.
Retirees’ Optimism Amid Challenges
Despite the multitude of factors that could instill worry in both workers and retirees, the survey underscores a prevailing sense of hopefulness. While some may face the reality of adjusting their spending habits or extending their working years, confidence persists regarding their ability to enjoy a fulfilling retirement, even in the face of fluctuating market conditions and financial instability.
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