Retirees fear inflation, health costs will erode savings

A Schroders survey of U.S. retirees found widespread concern that inflation and rising medical bills will erode retirement savings. Ninety percent of the 382 respondents reported they worry inflation will reduce their assets, and 87% reported fear of unexpectedly high health care costs. Schroders released the results on May 19.

The 2026 U.S. Retirement Survey was conducted online from March 20 to April 15 and included retirees across the United States. The poll also found 81% of respondents worried a major market downturn could significantly reduce their assets, and 68% were concerned about outliving their savings.

Sixty-nine percent reported they are unsure about the best way to draw down retirement income, and 32% said they work with a financial advisor. More than one-third of respondents reported that financial stress could affect their overall health.

Research from the AARP Public Policy Institute shows medical costs are rising faster than many retirees’ incomes, a factor noted in the Schroders summary as helping explain why health care costs ranked highly as a financial concern.

Deb Boyden, head of U.S. defined contribution at Schroders, noted in a statement that ‘Investing for retirement and investing in retirement are fundamentally different challenges.’ She added that longer lifespans can require savings to support retirees for ‘three or four decades.’

Schroders did not provide a detailed demographic breakdown of the 382 respondents. The firm suggested advisers and retirement plan sponsors could help retirees manage drawdown strategies, health care planning and longevity risk.