Americans heading into retirement are facing a hefty gap between what they have saved and what they believe they need — a difference that has ballooned by roughly half a million dollars.
Recent research from Clever Real Estate suggests retirees now estimate they need an average of $823,800 in savings and investments to retire comfortably in 2026. That’s a dramatic increase from last year, when respondents put the number at $580,310.
Meanwhile, the average retiree reports having just $288,700 tucked away.
The findings are the result of a poll of 1,000 retired Americans.
Retirees fear a national crisis
From personal finances to the broader economy, retired Americans are worried for the nation’s financial well-being.
About 64% of the survey respondents say the U.S. is in a retirement crisis, and only 41% believe retirement will even be possible for the typical American in 25 years.
About 45% say they didn’t prepare adequately, and the same number worry they’ll outlive their savings.
Meanwhile, 51% admit they have no plan if their money runs out, and 43% say they’d prefer to die rather than face that financial reality.
Essentials are stretching budgets
Retirees report spending more on essential expenses, leaving less room for the leisure activities and travel that many associate with their golden years.
Almost half of respondents say they’re struggling to pay for expenses. Here are the biggest pain points, according to the survey, along with the percentage of respondents citing them as a financial struggle:
Groceries: 28%
Utility bills: 22%
Credit card bills: 18%
Insurance bills: 17%
Taxes (income taxes, property taxes, etc.): 17%
Phone, internet and cable bills: 16%
Medical bills, prescriptions, copays, appointments, etc.: 15%
Transportation (car maintenance, repairs, etc.): 14%
Gasoline: 12%
Mortgage or rent: 12%
When groceries, utilities and medical bills consume an increasing share of fixed income, the retirement lifestyle that seemed achievable a decade ago may now feel out of reach.
This squeeze on discretionary spending could explain why so many retirees have revised their estimates upward for what constitutes a comfortable retirement.
Other ways retirees struggle
The financial pressure is forcing many retirees to make big sacrifices. To preserve dwindling savings, 14% of respondents say they’ve avoided medical appointments or treatments, and 12% admit to skipping meals.
Income instability is driving others back into the workforce. About 31% of retirees say they have considered returning to work part-time or full-time to make ends meet.
This reliance on additional income stems from the limitations of government benefits. While 90% of retirees receive Social Security, it accounts for 57% of the average retiree’s income — and for 22%, it’s their sole source of funds.
Meanwhile, traditional safety nets are fading, with retirement funds like 401(k)s and IRAs now outpacing pensions as common income sources.
The survey findings show that over a third of retirees aren’t sticking to budgets despite rising expenses. And about the same number say they’re still helping adult children or grandchildren financially.
Big challenges ahead for retirees
This savings shortfall points to broader challenges down the road as more baby boomers leave the workforce and more Americans face retirement with inadequate resources.
Whether this leads to policy changes, shifts in how families support older members or more retirees working longer than planned remains to be seen. However, these numbers suggest that the gap between retirement dreams and retirement reality isn’t closing anytime soon.
For anyone thinking about retirement, now is the time to plan and take action.
If you have $10,000 or more to invest Anthem Gold Group is committed to helping you protect your wealth and retirement with physical precious metals.
