Schroders Study Reveals How Retirees Are Responding to the Affordability Crisis

Half of Retirees Report Their Expenses Are Higher Than Expected

Nearly One-In-Five Struggling Financially

NEW YORK--(BUSINESS WIRE)--More than five years after the onset of the worst US inflation outbreak in a generation, the impact of rising prices continues to trouble retirees. According to Schroders’ 2026 US Retirement Survey, 49% of retirees report that their expenses in retirement are higher than they expected, and more than half (58%) don’t know how long their savings will last.

The top five concerns weighing on retired Americans in 2026 include (% at least slightly concerned):

• Inflation lessening the value of assets (90%)
• Higher than expected healthcare costs (87%)
• A major market downturn significantly reducing assets (81%)
• Not knowing how to best take retirement income and/or draw down assets (69%)
• Outliving assets (68%)

On average, retirees report spending 16% of their total monthly income on healthcare costs, including insurance premiums, prescription costs, and out-of-pocket expenses, and the majority (58%) say that they expected Medicare to cover a greater share of their healthcare costs.

Notably, 64% of retirees wish they had done more planning prior to retirement, and just 32% currently work with a financial advisor.

“Retirees are fighting the affordability crisis with a fixed pool of assets and no second chances,” said Deb Boyden, Head of US Defined Contribution at Schroders. “What often gets overlooked is that investing for retirement and investing in retirement are fundamentally different challenges. Once you retire, protecting against losses is just as important as capturing gains. With lifespans extending well into the 80s and beyond, your savings may need to work for you for three or four decades.”

Amid Economic Pressures, Retirees Appreciate the Gift of Time

Further evidence of the challenges facing today’s retirees is revealed when survey participants describe their current financial situation:

• 4% are “living the dream”
• 37% are “comfortable”
• 35% are “not great but not bad”
• 19% are “struggling”
• 5% are “living the nightmare”

Against this backdrop, more than a third of retirees (36%) are concerned that financial stress will impact their overall health, 28% have lost sleep worrying about their financial situation, and 27% spend an hour or more per day worrying about money.

However, despite their financial distress, the vast majority of retirees (79%) say retirement is a time of freedom to pursue their passions/hobbies, and 68% say leaving the workforce provided an opportunity to try things they’ve never done before.

For more information visit: Living in Retirement: Schroders US Retirement Survey

About the Survey

The Schroders 2026 US Retirement Survey was conducted by 8 Acre Perspective among 1,500 US investors nationwide ages 30-79, including 382 retired Americans. The survey was conducted from March 20 to April 15 in 2026.

For more information visit: Living in Retirement: Schroders US Retirement Survey

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Schroders plc

Schroders is a global investment manager which provides active asset management, wealth management and investment solutions, with £823.7 billion (€943.4 billion; $1107.9 billion) of assets under management at 31 December 2025. As a UK listed FTSE100 company, Schroders has a market capitalisation of circa £6.5 billion and operates across 38 locations. Established in 1804, Schroders remains true to its roots as a family-founded business. The Principal Shareholder Group continues to be a significant shareholder, holding approximately 44% of the issued share capital.

Schroders' success can be attributed to its diversified business model, spanning different asset classes, client types and geographies. The company offers innovative products and solutions through four core business divisions: Public Markets, Solutions, Wealth Management, and Schroders Capital, which focuses on private markets, including private equity, renewable infrastructure investing, private debt & credit alternatives, and real estate.

Schroders aims to provide excellent investment performance to clients through active management. This means directing capital towards resilient businesses with sustainable business models, consistently with the investment goals of its clients. Schroders serves a diverse client base that includes pension schemes, insurance companies, sovereign wealth funds, endowments, foundations, high net worth individuals, family offices, as well as end clients through partnerships with distributors, financial advisers, and online platforms.

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