Retired Americans say there is a retirement crisis as the typical American retiree currently has just $288,700 in savings but believes $823,800 is needed to retire comfortably in 2026, according to a new report from Clever Real Estate, a St. Louis-based real estate company.
Sadly, a majority of retirees (51%) have no plan if their savings run out, and 43% say they would prefer to die than have that happen. They also do not have faith in politicians to help, with only 14% saying they trust the government to act in their best interest on retirement policy.
The new estimate has risen sharply from last year, when retirees said an average of $580,310 was enough to retire. Meanwhile, the average retiree’s savings is $20,000 less than last year ($308,040), and nearly a third (29%) report having no retirement savings at all.
Nearly two-thirds of retirees (64%) say the U.S. is in a retirement crisis, and fewer than half (41%) believe retirement will be possible for the typical American in 25 years.
The majority of retirees (55%) say they are prioritizing preserving their finances over enjoying retirement, with 67% spending more than they planned on groceries and 60% spending more than expected on insurance. Nearly half of retirees (48%) are not confident they can financially sustain their quality-of-life long term, while 23% doubt they can do so even for the next year.
In an effort to save money, 14% of retirees have gone as far as avoiding medical appointments and 12% have skipped meals.
A year into President Donald Trump’s administration, 55% of retirees say they feel more pessimistic about the U.S. economy, compared to 24% who feel more optimistic.
About 59% say their retirement strategy is not keeping up with added costs from tariffs, and just 14% say they trust the government to act in their best interest on retirement policy.
Roughly half (49%) of retirees say a significant drop in their home value would impact their long-term financial plan, and 25% are not confident they will be able to afford their current housing costs a year from now.
With 90% of retirees feeling that retirement communities are unaffordable, roughly three-quarters (73%) say they would do everything possible to stay in their home, even if they could barely afford it.
Although 45% of retirees believe their home is the only thing allowing them a comfortable retirement, 73% admit they could not afford a home in today’s market.
Read the full report from Clever Real Estate online.
