Jan 22, 2026
After a year of market volatility and elevated living costs, many Americans are entering the new year uncertain about their financial futures.
About four in 10 American adults say they aren’t confident they’ll have enough income and assets to last through retirement or believe they won’t be able to retire at all, according to Pew Research (1).
Advertisement
Consider Carrie. Now 62, she spent nearly four decades working as a project manager in commercial construction, steadily building her retirement savings through consistent 401(k) contributions, employer matches and IRA rollovers. By her late 50s, she was ahead of schedule. Retiring at 65 felt achievable (2).
That confidence has been tested. While inflation has cooled from its post-pandemic highs, the costs most relevant to those nearing retirement, including healthcare, housing, insurance and utilities, remain elevated. Rising Medicare premiums and lingering questions about Social Security’s long-term solvency have further complicated the picture, forcing Carrie to rethink a timeline she once considered settled.
Nick Maggiulli, founder of the Of Dollars and Data blog and author of The Wealth Ladder, says those approaching retirement should focus on what remains within their control.
“There’s always something you can do,” he told Moneywise.
A tougher backdrop for new retirees
A record number of Americans are reaching retirement age at a time when the economic backdrop has become increasingly uncertain. An estimated 4.18 million people are expected to turn 65 in 2025, the largest wave in U.S. history (3).
That volatility has been fueled in part by policy shifts. In early April, President Donald Trump rolled out tariffs targeting key U.S. trade partners, rattling markets and sending the S&P 500 close to bear market territory, or nearly 20% below recent highs (4).
Uncertainty is also building around monetary policy. Trump is expected to name a new Federal Reserve chair to replace Jerome Powell when his term ends in May, a decision that Granite Bay Wealth Management chief investment officer Paul Stanley has described as “the big uncertainty” for investors heading into 2026 (5).
For retirees, these forces are colliding with changes to everyday cash flow. While Social Security benefits will rise by 2.8% in 2026, about $56 more per month on average, higher Medicare costs could blunt that increase. Standard Medicare Part B premiums are set to climb to $202.90 per month in 2026, up from $185 in 2025, and those premiums are typically deducted directly from Social Security checks (6,7).
Advertisement
For Carrie, that kind of uncertainty is forcing many near-retirees to run the numbers again and realize that even modest increases in costs can have an outsized impact once paychecks stop.
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Robert Kiyosaki begs investors not to miss this ‘explosion’ — says this 1 asset will surge 400% in a year
- Vanguard reveals what could be coming for U.S. stocks, and it’s raising alarm bells for retirees. Here’s why and how to protect yourself
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
What is in your control
Despite how it can feel, Maggiulli says nearing retirement doesn’t mean you’re stuck sitting on the sidelines, watching your savings rise and fall with every market swing. Taking a more conservative and diversified approach, he says, can help protect what you’ve already built without trying to guess what the market will do next.
One place to start is with bonds and, more specifically, which bonds you own. While many people know bonds are meant to add stability, Maggiulli says those approaching retirement may want to lean toward shorter-term options, like Treasury bills or notes that mature within a few years. These tend to be less sensitive to interest-rate changes than long-term bonds, meaning they’re less likely to take a hit if rates rise.
He also suggests looking at municipal bonds, particularly those issued by your home state. The income from these bonds is often exempt from federal taxes and, in some cases, state taxes as well, which can help stretch retirement income further. That said, they do carry some risk, which varies by state, so it’s worth doing your homework or talking it through with a tax professional.
But perhaps most importantly, Maggiulli says retirees should focus on the things they can control and stop stressing over the rest.
“We can control how we invest our portfolios, how we spend our money, how we spend our time, and much more,” he said. “Figure out an approach that allows you to sleep soundly at night and then stop worrying about what else might come.”
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Pew Research (1); Buzzfeed (2); Protected Income (3); BBC (4); Fox Business (5); Social Security (6); CMS (7).
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- This 20-year-old lotto winner refused $1M in cash and chose $1,000/week for life. Now she’s getting slammed for it. Which option would you pick?
- Warren Buffett used these 8 repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
Victoria Vesovski is a Toronto-based Staff Reporter at Moneywise, where she covers the intersection of personal finance, lifestyle and trending news. She holds an Honours Bachelor of Arts from the University of Toronto, a postgraduate certificate in Publishing from Toronto Metropolitan University and a Master’s degree in American Journalism from New York University’s Arthur L. Carter Journalism Institute. Her work has been featured in publications including Apple News, Yahoo Finance, MSN Money, Her Campus Media and The Click.
