Americans say they’re ready for retirement — but most aren’t actually prepared. How to know which camp you belong to

So, what is the difference between feeling ready and being prepared? And what is making Americans feel less confident regarding their financial readiness?

Retirement readiness

When asked if they would retire in 2026 as planned, 60% of the survey respondents said they were very confident they would do so.

But when asked about financial preparedness, only 27% of respondents said they felt very financially prepared; 53% said they felt “somewhat prepared,” and 18%, nearly one in five, said that they felt “not very or not prepared at all.”

These feelings could be due to worries about running out of money in retirement. The survey found that 52% of respondents had fears about outliving their savings.

Other top financial concerns of those surveyed included the rising cost of living, rising health care costs and Social Security changes.

A different survey, conducted by Principal Financial Group in 2025, found that while 54% of Americans said they thought their financial situations would improve over their lives, the same percentage said they worried about running out of savings during retirement.

That survey didn’t just target individuals who were at retirement age, but those who identified as “household financial decision makers.” Of those surveyed who were Gen X, 70% said they didn’t believe their retirement savings were sufficient, with 50% of baby boomers saying the same.

Are you prepared?

There are many metrics you can use to calculate your financial readiness for retirement.

You can base what you’ll need saved on your annual income; some experts recommend saving 10 times your income by the age of 67.

Another way to calculate how much you’ll need over the course of your retirement is to use a replacement rate, a percentage of your pre-retirement income that will sustain your lifestyle, commonly between 70% and 80% of your pre-retirement income.

When it comes to big unknowns that could impact your financial plans for retirement, it may be helpful to consult a financial planner.

Working with a financial planner, you can stress test your plan against different scenarios that you could face in retirement: market downturns, inflation, a health episode or the need to enter long term care.