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A comfortable retirement is beginning to seem less attainable for many middle-class Americans. New research from CNO Financial Group found that nearly 1 in 3 middle-income Americans ages 50 to 85 feel less confident about their retirement plans than they did a year ago.
The growing unease reflects financial stress coming from multiple directions, according to Scott Goldberg, president of CNO Financial Group’s consumer division.
“Middle-income Americans face continued economic pressures due to rising costs, market volatility and doubts about the future of key government programs,” he said. “These factors are reshaping expectations and making many people feel less prepared for retirement.”
Here’s a closer look at the main factors driving retirement confidence among Americans over 50.
Rising cost of living is outpacing retirement savings
Concerns about everyday affordability are weighing heavily on people approaching retirement. The survey found that 41% of middle-income Americans ages 50 to 85 doubt that they will have enough money to live comfortably in retirement, including nearly half (49%) of those who have not yet retired.
“Rising everyday expenses and health care costs are forcing many people to reevaluate what retirement really looks like, especially as people are living longer and may spend decades in retirement,” Goldberg said. “It’s understandable that many middle-income Americans question whether their savings will last.”
Although these concerns are widespread, Goldberg said proactive planning can help address higher costs over time. Creating a retirement strategy that takes into account longevity, health care expenses and spending flexibility can reduce the risk of depleting savings too quickly.
Inflation is destroying retirement purchasing power
Inflation remains the top retirement concern for middle-income Americans over 50, with 27% citing it as their primary concern.
“Inflation directly affects purchasing power, and middle-income Americans feel it the most,” Goldberg said. “Even though inflation subsides, its impact still persists. This makes people worried about how future inflation could limit access to their retirement savings.”
Planning for inflation is important, especially for those who may rely on a fixed income for decades. A diversified retirement strategy that balances growth, security and reliable income can help reduce risk. Practical steps can also strengthen retirement security, such as delaying Social Security or working part-time when possible to avoid draining savings early.
Uncertainty remains over Social Security benefits
Social Security plays a central role in retirement income for millions of Americans, which is why concerns are growing about potential benefit cuts. The survey found that 18% of middle-income Americans over the age of 50 identify potential cuts to Social Security as their top retirement concern.
“When people start worrying that benefits could be reduced, it raises broader concerns about their financial security and retirement preparedness,” Goldberg said.
He stressed the importance of creating retirement income plans that do not rely solely on Social Security. Disciplined spending and diversifying portfolios and income streams can help retirees remain more flexible if government benefits change in the future.
What this means for middle-class Americans approaching retirement
Perhaps the most worrying thing the survey revealed is that 15% of middle-income Americans over the age of 50 do not believe they will ever be able to afford to retire.
“Middle-income Americans are concerned about their ability to retire, especially amid growing economic uncertainty,” Goldberg said. “However, it is never too late to take steps to secure your financial future, such as using valuable products such as annuities and long-term care insurance, increasing retirement contributions and taking advantage of catch-up provisions.”
With thoughtful planning and professional support, many of these risks can be addressed to strengthen retirement confidence.