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Inflation is the top concern for today’s retirees

Most say they have no idea how long their money will last

Updated:

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By:
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Mark Huffman
Reporter

Mark Huffman has covered consumer issues since 2004, with a special focus on protecting and empowering older adults. A former news correspondent for the Associated Press Radio Network, Westwood One, and ConsumerAffairs, Mark brings decades of journalistic experience to RetirementLiving.com. He is passionate about giving consumers a voice and helping them make informed decisions. Mark has also created educational content, including Senior Scam Alert, a video resource designed to help seniors recognize and avoid fraud. He holds a B.A. from the University of Kentucky and lives with his family in Richmond, Virginia.
Inflation tiles on a table: Photo by Markus Winkler on Unsplash

Photo by Markus Winkler on Unsplash

Key Insights

  • Inflation weighs heavily on retirees, with 92% concerned about its impact on their assets.
  • 62% of retired Americans have no idea how long their savings will last.
  • Nearly half (45%) report higher-than-expected expenses in retirement.

Rising prices continue to erode the sense of security among America’s retirees, as revealed by the Schroders 2025 US Retirement Survey. With inflation persisting and the future impact of new tariffs uncertain, retirees are feeling mounting pressure on their savings. 

The study, which surveyed 1,500 investors nationwide – including 373 retired Americans – found that the top concern is the diminished value of retirement assets due to inflation, cited by an overwhelming 92% of respondents, up from 89% in 2024. Higher-than-expected costs for essentials like housing, food, and especially healthcare have become significant stressors for this population.

Uncertainty and the risk of outliving savings

The study found that 62% of retired Americans admit they do not know how long their money will last, suggesting widespread anxiety over longevity risk and financial planning. Just two in five retirees (40%) believe they have enough money saved for retirement, while nearly half (45%) say their expenses have exceeded initial expectations. 

In addition, 70% are concerned about the possibility of outliving their assets, and 71% express uncertainty about the best strategies to generate income or draw down retirement savings, both figures rising since last year.

Retirees now allocate roughly 15% of their total monthly income to healthcare-related expenses, yet more than half (58%) were surprised by how little Medicare covered. Financial stress has tangible effects: 36% of retirees now worry their financial struggles could impact their overall health, up from 33% in 2024. As stress intensifies, one-in-four say they’ve lost sleep over their financial situation, and over a quarter spend an hour or more each day worrying about money.

Need for advice

Despite these anxieties, 64% of retirees do not work with a professional financial advisor, and 44% lack a concrete plan for estimating expenses or developing an investment strategy. The study underscores the importance of proactive retirement planning, risk management, and access to personalized advice in today’s uncertain economic climate.

“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.”