Inflation is squeezing Americans’ confidence in their retirement plans, a recent Fidelity study found. Seventy percent of retirees surveyed say rising costs of living have eaten into their savings. If they could go back in time, nearly half of retirees say they would have started saving sooner, and about a fifth say they would have prepared for inflation better.
As a record number of Americans near retirement age in 2025, these inflation worries are more pressing. While two-thirds of Americans in their retirement-planning years say they are confident about their retirement prospects, that number is down seven points from a year ago, amid rising costs of living.
Inflation impacts retirement savings confidence
More than two-thirds, or 70%, of current retirees surveyed said rising costs of living have eaten into their savings, with health care representing one of the largest sources of expenses in retirement. Most pre-retirees said they are concerned about health care costs, with the average American expected to spend upward of $165,000 on health care during retirement, up 5% from a year ago. Americans not yet in retirement expect they may need to be more self-reliant when it comes to retirement income compared to current retirees.
Over 60% of pre-retirees are uncertain their retirement savings will last, according to Fidelity. Looking back, two-thirds of retirees said they would advise others to start saving for retirement as soon as possible—even in small increments. If they could go back in time, almost 40% of today’s retirees say they would start saving sooner, and about a fifth say they would have prepared for rising costs and inflation better, according to the study.
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