Survey Finds Retirees Cite Inflation and Health Costs as Top Concerns

Inflation, rising health care costs and fears of outliving savings are the leading financial concerns among retirees, according to new research from investment firm Schroders. A survey of about 400 retirees found that 90 percent said they worry inflation will erode the value of their assets.

Eighty-seven percent cited higher than expected health care costs, while 81 percent pointed to a major market downturn reducing assets. Sixty-nine percent expressed concern about not knowing how to best draw down retirement assets, and 68 percent worried about outliving their savings.

One in five retirees said they are struggling financially.

8 percent in April from a year earlier. 8 percent cost-of-living adjustment for 2026, below the April inflation rate. Kelly LaVigne, vice president of consumer insights at Allianz Life, said a 3 percent inflation rate would double the cost of living in 24 years.

She noted that retirees must plan for income lasting 30 years. U.S. defined contribution at Schroders, said retirees face an affordability crisis with a fixed pool of assets.

A separate Allianz study of 1,000 people found that 42 percent of Americans retire earlier than planned. Health issues and unexpected job loss were cited as common reasons. LaVigne said workers who retire at 62 instead of 65 must fund three additional years and secure health insurance before Medicare eligibility.

About half of Americans lack a written financial plan. LaVigne said contingency planning is essential because most people will not return to work later in life.