Inflation-proof your retirement: Retirees reveal concerns around their savings

Americans' financial situation still feels tenuous, and for those living off their accumulated savings in retirement, it's looking especially bleak. 

According to Schroders' 2024 U.S. Retirement Survey, more than a third of current retirees are convinced they do not have enough savings, and a quarter are unsure if their savings will last them through retirement. Inflation was the main factor, with 89% feeling that their assets have lost value because of the economy, while 85% shared that healthcare was more expensive than anticipated. 

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A lack of education was also a major reason a large share of retirees feel unsure about their financial futures, as 69% said they did not know how to generate income or decumulate their assets in retirement. Additionally, 68% were concerned they would outlive their savings, the report found. 

"Prices in the U.S. have increased noticeably in recent years, and that is particularly challenging for retirees living on fixed income sources," Deb Boyden, head of U.S. defined contribution at Schroders, said in a release. "The challenges facing retirees today are further evidence of the retirement savings crisis." 

Sixty-three percent of retirees wish they had done more planning for their retirement, pointing to a continued gap in resources offered by employers. While 87% of employers offer some sort of retirement planning account, according to the Bureau of Labor Statistics, additional benefits like one-on-one planning and in-plan decumulation programs are becoming essential to support retirees who exit the workforce without a firm plan in place. 

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Of those who work with a financial professional for example, 40% improved their financial readiness over the course of three years, and 53% felt more confident in their ability to plan and prepare for the future, according to a survey from Corebridge Financial. 

It's important to prepare employees for retirement decades before they leave the workforce, with generationally-specific benefits that address financial needs at every stage. Basic budgeting, debt management and continuous financial education should be table stakes at every organization.

"Not knowing how to plan is a key barrier," says Terri Fiedler, president of retirement services at Corebridge Financial. "Employers can offer webinars, online tools, calculators or assessments that can help employees better understand their financial picture and plan accordingly. These are topics that not only affect how you manage your finances today, but also potentially impact your longer-term retirement goals." 

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Without the right preparation, retirees are in for a rude awakening: Schroeders found that just 4% say they are "living the dream" in retirement, and 15% are struggling financially. Four percent shared they are "living the nightmare" since leaving the workforce. 

Employers can — and should — play a role in supporting the path to retirement for employees at all stages. 

"For younger generations with longer time horizons, now is the time to prioritize saving for a brighter future," Boyden said. "We can and should do more to improve the economic security of tomorrow's retirees, and underscore the urgency for bolder actions from retirement savers, plan sponsors and asset managers."