Retirement Confidence High Among Wealthy Americans, Despite Inflation Concerns

A new global survey reveals a significant disconnect between the confidence of wealthy Americans regarding their retirement readiness and their actual planning for inflation and potential shortfalls in Social Security benefits.

The Prudential survey, conducted in August with over 4,200 adults holding at least $100,000 in investable assets, found that 89% of U.S. respondents are confident they can cover essential retirement costs. However, only 55% have factored inflation into their retirement planning, creating what Prudential’s global head of retirement and insurance, Caroline Feeney, calls a “confidence paradox.” “Feeling ready is very different than actually being ready,” Feeney said. “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.”

This disconnect is particularly relevant as the baby boomer generation reaches peak retirement age, with over 11,200 individuals turning 65 each day through 2027, according to a January 2024 report from the Alliance for Lifetime Income. While the consumer price index rose 3% in September year-over-year, and the 2026 Social Security cost-of-living adjustment is projected at 2.8%—adding roughly $56 per month to average benefits—retiree spending has consistently outpaced inflation in recent years. Many Americans are also worried about the long-term solvency of Social Security; 63% of survey respondents expressed concern about the government’s ability to maintain benefit payments. For more information on planning for retirement, consider exploring resources from the Social Security Administration.

Experts emphasize the importance of proactive planning. Uziel Gomez, a certified financial planner with Primeros Financial, notes that many clients underestimate their future expenses, assuming they will decrease in retirement when, in reality, they often increase. A recent survey by Principal Financial Group found that 54% of Americans believe their financial situation will improve, yet the same percentage fear outliving their savings. Working with a financial advisor can significantly boost confidence; 93% of respondents working with an advisor expressed confidence in covering essential expenses, compared to 83% of those without one.

Officials recommend utilizing available tools, including online retirement calculators from firms like Vanguard and Prudential, to assess individual needs and ensure adequate preparation for the future.