More Americans say they're 'living a nightmare' in retirement than 'living the dream.' Here's what's tarnishing their golden years

“Retirees are fighting the affordability crisis with a fixed pool of assets and no second chances,” said Deb Boyden, who works as the head of U.S. defined contribution at Schroders. “With lifespans extending well into the 80’s and beyond, your savings may need to work for you for three or four decades.”

Here’s what’s making retirees so stressed — and why some working Americans are giving up hope of ever retiring.

Retirees experience significant stress over their finances — and it’s hurting their health

According to Schroders, over a third of retirees are worried that stress over their finances will impact their physical health. Almost 30% have lost sleep over it, compared to 25% in 2025.

Retirees were given five options to describe their current financial situation: “living the dream,” “comfortable,” “not great but not bad,” “struggling,” and “living the nightmare.” In 2025, 5% of respondents said they were “living the dream,” while 3% said they were “living the nightmare.”

In 2026, only 4% of respondents said they were living the dream, while 5% of respondents said they were living the nightmare. More respondents reported they were struggling in 2026 than 2025, at a rate of 19% versus 16%.

Retirees’ major concerns included inflation weakening their retirement assets, high healthcare costs, and fear of a market downturn.

Healthcare costs have been steadily increasing for retirees. Fidelity’s 2025 Retiree Health Care Cost Estimate says that the average 65-year-old retiring in 2025 should expect to pay $172,500 in health care during retirement — up 4% versus 2024.

In 2002, the first year Fidelity published an estimate, it said a retiree that year could expect to pay only $80,000 for healthcare during retirement.