Retirees face growing financial strain, study shows

A new report from Clever Real Estate paints a sobering picture of retirement in America, revealing a widening disconnect between what retirees have saved and what they believe they need to live comfortably.

According to the St. Louis–based real estate company, the typical retiree currently has $288,700 in retirement savings. Yet respondents say it would take an average of $823,800 to retire comfortably in 2026 — a dramatic jump from last year, when retirees estimated they needed about $580,000. At the same time, actual savings are moving in the opposite direction, declining by roughly $20,000 from 2024 levels.

The shortfall is especially stark for a sizable portion of the population. Nearly three in 10 retirees report having no retirement savings at all, underscoring what many see as a systemic problem rather than an individual one.

Concerns about the ability to retire

Overall, 64% of retirees say the U.S. is in the midst of a retirement crisis, and just 41% believe the typical American will be able to retire at all 25 years from now.

Mounting costs are a central driver of that anxiety. More than half of retirees say they are prioritizing preserving their finances over enjoying retirement, with everyday expenses proving especially difficult to manage. About two-thirds report spending more than expected on groceries, while 60% say insurance costs are higher than planned.

Those pressures are forcing some retirees into painful trade-offs. Nearly half say they are not confident they can sustain their quality of life long term, and almost a quarter doubt they can manage financially even for the next year. In an effort to stretch limited resources, 14% of retirees say they have avoided medical appointments, and 12% report skipping meals.

Economic pessimism

The fear of running out of money looms large. A majority of retirees say they have no plan in place if their savings are exhausted, and 43% say they would prefer to die rather than face that scenario.

Economic pessimism is also widespread. One year into the Trump administration, 55% of retirees say they feel more pessimistic about the U.S. economy, compared with 24% who feel more optimistic. Many say broader policy shifts are affecting their personal finances: nearly six in 10 believe their retirement strategies are not keeping pace with higher costs tied to tariffs, and only 14% say they trust the government to act in their best interest on retirement policy.

Housing remains both a lifeline and a vulnerability. About half of retirees say a significant drop in their home’s value would undermine their long-term financial plans, and one-quarter are not confident they can afford their current housing costs a year from now. While 45% believe homeownership is the key factor enabling a comfortable retirement, nearly three-quarters say they could not afford to buy a home in today’s market.

With 90% of retirees viewing retirement communities as unaffordable, most are determined to stay put. Roughly 73% say they would do everything possible to remain in their homes — even if it meant barely getting by.