United States retirement confidence drops as Social Security solvency concerns rise

A 2026 Retirement Confidence Survey of 2,544 Americans found overall confidence falling to 64%, down from the previous year. Workers’ confidence slipped to 61% and retirees’ to 73%, driven by higher inflation, mounting debt, rising health‑care and housing costs, and worries about changes to Social Security and Medicare.

The survey also highlighted that 65% of workers view debt as a household problem, with half carrying credit‑card balances and one‑third holding more than $25,000 in non‑mortgage debt. At the same time, trustees of the Social Security Administration warned that the program will lack sufficient funds to pay full benefits by 2032, earlier than earlier projections. The shortfall is linked to record‑high U.S. public debt of $31 trillion and a May inflation rate of 4.2%.

Experts suggest that closing the gap would require several trillion dollars, such as raising the payroll‑tax rate by about 2%, expanding taxable earnings, or cutting benefits. The combined effect of financial pressure on households and the looming Social Security funding crisis is eroding Americans’ confidence in their retirement security.