Retirement Update: Confidence Down, Accounts Up
There’s good news and bad news on the state of retirement. Americans are saving more for the future but are anxious about their ability to do enough. In its 2026 Retirement Confidence Survey (RCS), the Employee Benefit Research Institute (EBRI) found that among those who are working and those who are already retired, confidence in having enough money to live comfortably throughout retirement dropped significantly this year from a year ago.
EBRI found that among those who are still working, confidence in having enough money to live comfortably in retirement fell to 61 percent, down by 6 percentage points from a year ago and by 11 percentage points from five years ago. Retirees’ confidence slid to 73 percent, down 5 percentage points from a year ago and 7 percentage points from five years ago. While both groups are stressed about the increase in inflation and high overall prices, retirees are also worried about potential policy changes to Medicare and Social Security, even though no changes have been announced.
Perhaps anxiety about the future prompted some workers to step up their retirement contributions. According to Fidelity Investments, the total savings rate for 401(k) retirement plan participants, worker contributions plus employers’ matches, reached 14.4 percent, just shy of the generally recommended 15 percent target. Additionally, IRA contributions were up 29 percent from a year ago.
The report also noted some warning signs. The share of workers with an outstanding 401(k) loan climbed to 19.2 percent, up from 18.8 percent a year earlier. And hardship withdrawals, which require proof of an immediate and heavy financial need, rose to 2.5 percent of participants, up from 2.3 percent a year ago. Those numbers are not worrisome yet but indicate that some are in financial distress. As a reminder, tapping retirement assets should be a last resort.
For those looking for specific retirement action items, here’s a breakdown by age group:
BOOMERS (born 1946-64): If still working, pay attention to new catch-up contribution levels. This year, you can save $24,500 in workplace plans (plus an extra $8,000, for a total of $31,000 if you are over 50). There is also a special extra amount you can contribute if you are 60, 61, 62, or 63 this year, instead of an extra $8,000, these folks can put in an additional $11,250.
Regardless of your contribution amount, if you have not done so already, determine if you have enough money to last through retirement, use one of the many calculators out there. Remember, retirement could last for 20-30 years. You should also familiarize yourself with the options for Social Security retirement benefits.
GEN X (born 1965-80): Presuming that you've paid off all your debt (student loans, auto, credit card), it’s time to maximize your retirement contribution up to the federal limit: If you don't have a plan at work, use a Traditional or Roth IRA. This year, you can contribute $7,500, and another $1,100 for those over the age of 50.
MILLENNIALS (born 1981-1996) and GEN Z (born 1997-2012): Start with the “Big 3”: establish an emergency reserve fund that can cover 6-12 months of living expenses, pay down high interest debt and contribute 5-6 percent of your income toward retirement. When cash flow allows, continue to increase the contribution amount until you reach the maximum.
One last note: If you run your retirement numbers and think that the way you will solve your shortfall is to work longer, EBRI notes that nearly half of retirees say they retired earlier than planned, primarily due to “something out of their control, including having a health problem or disability as well as changes at their workplace.”