Americans Show Retirement ‘Confidence Paradox,’ Prudential Survey Finds

A growing number of Americans may be overestimating their financial readiness for retirement, according to new survey data from Prudential, which found that many adults feel prepared despite overlooking key factors such as inflation and future Social Security benefits. Experts warn that this disconnect could leave retirees vulnerable as the baby boomer generation enters what analysts call “peak 65.”

Prudential’s global survey found that 89% of wealthy U.S. adults are confident they can cover essential costs in retirement, yet only 55% said they have accounted for inflation in their financial plans. “Feeling ready is very different than actually being ready,” said Caroline Feeney, global head of retirement and insurance for Prudential. “People feel ready, so they’re not taking the necessary action and plans now to start saving and leaning into closing what may be a real retirement gap for their futures that they’re not aware of.”

The findings come as more than 11,200 Americans turn 65 each day through 2027, according to the Alliance for Lifetime Income. Inflation continues to pressure household budgets, with the consumer price index rising 3% in September from a year earlier, while the Social Security cost-of-living adjustment for 2026 will be 2.8%.

A retired couple | Source: Pexels

Retirees’ spending has outpaced inflation in recent years, and 63% of U.S. respondents in the Prudential survey expressed concern about the future of government programs like Social Security.

A separate Principal Financial Group survey found that while 54% of Americans believe their financial situation will improve, the same share fear running out of savings in retirement. Nearly 70% of Gen X respondents and half of baby boomers said their savings may not be sufficient.