Retirement Confidence Is Falling for Middle-Class Americans Over 50: Here’s Why
Written by
Gabrielle Olya
Edited by
Molly Sullivan
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A comfortable retirement is starting to feel less attainable for many middle-class Americans. New research from CNO Financial Group found that nearly 1 in 3 middle-income Americans ages 50 to 85 feel less confident about their retirement plans than they did just a year ago.
That growing unease reflects ongoing financial stress coming from multiple directions, according to Scott Goldberg, president of the consumer division at CNO Financial Group.
“Middle-income Americans are facing sustained economic pressure driven by rising costs, market volatility and doubts surrounding the future of key government programs,” he said. “These factors are reshaping expectations and leaving many people feeling less prepared for retirement.”
Here’s a closer look at the main factors driving down retirement confidence among Americans over 50.
Rising Living Costs Are Outpacing Retirement Savings
Concerns about day-to-day affordability are weighing heavily on people approaching retirement. The survey found that 41% of middle-income Americans ages 50 to 85 doubt they’ll have enough money to live comfortably throughout retirement, including nearly half (49%) of those who have not yet retired.
“Rising everyday expenses and healthcare costs are forcing many people to reassess what retirement realistically looks like, especially as people are living longer and may spend decades in retirement,” Goldberg said. “It’s understandable that many middle-income Americans question whether their savings will last.”
While those concerns are widespread, Goldberg noted that proactive planning can help address higher costs over time. Building a retirement strategy that accounts for longevity, healthcare expenses and spending flexibility can reduce the risk of drawing down savings too quickly.
Inflation Is Eroding Retirement Purchasing Power
Inflation remains the top retirement concern for middle-income Americans over 50, with 27% citing it as their primary worry.
“Inflation directly affects purchasing power, and middle-income Americans tend to feel it most,” Goldberg said. “Even as inflation eases, its effects linger. It leaves people concerned about how future inflation could limit the reach of their retirement savings.”
Planning for inflation is critical, particularly for those who may rely on a fixed income for decades. A diversified retirement strategy that balances growth, protection and reliable income can help mitigate risk. Practical steps can also strengthen retirement security, such as delaying Social Security or working part time when possible to avoid drawing on savings too early.
Uncertainty Surrounds Social Security Benefits
Social Security plays a central role in retirement income for millions of Americans, which is why concerns about potential benefit cuts are fueling anxiety. The survey found that 18% of middle-income Americans over age 50 identify possible reductions to Social Security as their top retirement concern.
“When people start to worry that benefits could be reduced, it raises broader concerns about their financial security and retirement readiness,” Goldberg said.
He stressed the importance of building retirement income plans that don’t rely solely on Social Security. Disciplined spending and diversifying portfolios and income streams can help retirees remain more resilient if government benefits change in the future.
What This Means for Middle-Class Americans Nearing Retirement
Perhaps the most concerning stat uncovered by the survey is that 15% of middle-income Americans over age 50 don’t believe they’ll ever be able to afford to retire.
“Middle-income Americans are understandably concerned about their ability to retire, especially amid increased economic uncertainty,” Goldberg said. “However, it’s never too late to take steps to secure your financial future, such as making use of valuable products like annuities and long-term care insurance, increasing retirement contributions and taking advantage of catch-up provisions.”
With thoughtful planning and professional support, many of these risks can be addressed to strengthen retirement confidence.
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