Worker retirement confidence dips to lowest level in a decade

Worker confidence in their retirement readiness reached its lowest level since 2017, and healthcare concerns, along with a decrease in savings, are driving that decline in confidence.

The Employee Benefit Research Institute announced the results of its 2026 Retirement Confidence Survey, which is in its 36^th year.

Workers’ confidence in their ability to live comfortably in retirement is down, the survey showed. Only 61% of workers surveyed said they believe they will have enough money for a comfortable retirement. That is down from a record high of 72% in 2021 and up slightly from the 60% who said they felt that way in 2017.

Savings are at the heart of whether workers feel confident about their retirement, Craig Copeland, EBRI’s director of wealth benefits research, said. Among workers who feel confident, having enough money to cover their bills and having money in retirement funds and investments were the top reasons given for that confidence. On the other side, workers who don’t feel confident cited having little to no savings as the top reason for that feeling. Inflation and economic uncertainty also were top reasons why workers don’t feel confident about their retirement.

No matter their retirement confidence level, workers are concerned about possible scenarios that could impact their retirement. Topping the list of concerns are the federal government making significant changes to the American retirement system, an economic recession that will impact retirement plans, and rising housing costs.

Debt impacts retirement confidence

Debt also impacts retirement confidence, the survey showed, with 58% of workers saying debt interferes with their ability to save for retirement. Other factors interfering with retirement saving include the cost of healthcare and housing.

The percentage of workers who are saving for retirement is down from 2025, with 59% of workers saying they are currently saving – down from 64% last year – said Lisa Greenwald, CEO of Greenwald Research, who conducted the survey with EBRI.

A disconnect among workers

But the research found a disconnect between workers who believe they are saving in their employer’s retirement plan and those who are actively participating in it.

Daniella Moiseyev, head of retirement income solutions content strategy with Principal Financial Group, said her company researched workers who have access to an employer retirement plan but don’t participate in it. Among the reasons workers gave for not participating are high levels of debt and an income that leaves them with diminished saving capacity.

But researchers also found that 6 in 10 workers surveyed said that they are saving in their employers’ retirement plan, although they are not. Reinforced by existing balances or rollovers, many assumed they’ve been enrolled or they expect to be auto-enrolled in plans.

These nonsavers represent an opportunity for the industry, Moiseyev said.

“What can we do to get these participants to take action?” she asked. She listed what she called four clear levers to pull.

1. Make workers’ contribution status visible as many workers can’t tell whether they are contributing to the plan.
2. Use re-enrollment as a way to encourage contributions.
3. Use trigger moments, such as onboarding and benefits enrollment season, to encourage retirement plan participation.
4. Provide guidance to workers; employees indicated that they want help.

Interest in guaranteed lifetime income

Only 2 in 10 workers said they feel confident they will have enough money to last their entire life, Greenwald said. In addition, about one-third of workers don’t know how much they can comfortably withdraw from their retirement savings.

More than one-third of workers would find guaranteed lifetime income options the most valuable improvements to their workplace retirement savings plan, and more than 4 in 5 workers would be interested in purchasing a guaranteed income product with retirement savings.

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