Is the US in a Retirement Crisis? Why Two-Thirds of Retirees Think So
Written by
G. Brian Davis
Edited by
Jenna Klaverweiden
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In its 2026 retirement survey, Clever found that 64% of retirees believe the U.S. is in a retirement crisis. The average retiree has $288,700 saved but claims you need $823,800 to retire comfortably.
Why do so many see a retirement crisis?
Also see five retirement shifts coming in 2026.
Looming Social Security Insolvency
The Social Security Administration currently forecasts insolvency by 2032. If that happens, retirees could face a 24% benefit cut across the board, as detailed by the Committee for a Responsible Federal Budget.
That fast-approaching deadline doesn’t exactly reassure the average retiree.
High Housing Costs
Since the start of 2020, the average home price has shot up over 46%, according to Zillow. Meanwhile, mortgage rates rose from under 3% to around 6% to 7% over the last few years. That has locked many retirees into homes that no longer fit their needs.
Housing costs only get worse from there, according to financial strategist Shavon Roman of Heal Plan Invest. “Even homeowners who own their homes free and clear often see their property taxes and insurance premiums jump 30-60% in a single year,” Roman said.
Healthcare Costs
Medicare doesn’t cover every medical cost, as too many retirees discover the hard way.
“From doctor visit copays to prescription drugs, Medicare supplemental insurance to dental and vision costs, healthcare costs add up quickly in retirement,” Roman said.
Long-Term Care
Even one or two years in a nursing home or assisted living facility can drain your entire nest egg.
The American Council on Aging reported the average shared room costs $119,340 a year, and private rooms average $136,948. “With men spending 2.2 years in care and women averaging 3.7, we tell all of our clients that they are not ready for retirement until they have a plan for long-term care,” said financial planner Jay Zigmont of Childfree Trust.
Retirement Responsibility Shift
Two generations ago, retirees largely relied on pensions and Social Security to fund their retirement. They didn’t need to know much about asset allocations or safe withdrawal rates to retire comfortably.
Today, workers shoulder the responsibility for planning and funding their own retirement through investments. The Federal Reserve graphed this shift over time, noting that only around 20% of workers now have access to a pension.
The problem? Too many workers and retirees don’t know the first thing about retirement planning. “Americans must now navigate increasingly complex financial waters if they want a comfortable retirement,” said Robert Johnson, finance professor at Creighton University.
Word to the wise: The more you learn about personal finance, the more likely you are to enjoy financial success — or at least stay solvent in retirement.
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