Persistent increases in healthcare costs and longer lifespans are contributing to heightened anxiety about retirement security among Americans, according to MetLife’s 2026 Paycheck or Pot of Gold Study. The research found that 58% of pre-retirees aged 50–75 who are within five years of retirement and enrolled in an employer’s defined contribution (DC) plan worry about running out of money in retirement. Among retirees with remaining DC plan funds, 51% share this concern, a significant rise from 30% less than ten years ago.
MetLife reports that more retirees and pre-retirees recognize that traditional savings strategies may not be sufficient for today’s economic climate. Pre-retirees now expect their savings to last an average of only 15 years after retiring, down from 19 years four years ago, even though many anticipate spending between 25 and 30 years in retirement.
“America has reached critical juncture,” said Roberta Rafaloff, vice president and head of institutional income annuities at MetLife. “Economic volatility, rising costs and increasing longevity are reshaping the retirement landscape. Even diligent savers are finding their retirement outlook disrupted. Without reliable income streams to anchor their finances, retirees face an elevated risk of outliving their savings.”
The study also shows a growing demand for financial guidance regarding DC plan balances. In 2022, 86% of pre-retirees sought guidance; today that figure is at 95%. For retirees, the percentage increased from 81% in 2022 to 90%.
Despite aspirations for an active retirement lifestyle, many pre-retirees question whether they can afford it as daily living expenses and healthcare costs take up much of their resources. Retirees cited inflation and unexpected expenses as key reasons why their actual experiences differ from expectations, stating “in today’s economy, it’s hard to make ends meet with [their] current income” and “current inflation has affected some of the plans [they] had for [their] retirement.”
The study indicates that around three in five pre-retirees (62%) and retirees (59%) underestimated how much they needed to save for retirement. Similarly, many overestimated how long those savings would last—61% among pre-retirees and 57% among retirees. Nearly half (46%) of pre-retirees expect to reduce spending due to concerns about exhausting funds; among retirees this figure is already at 44%.
Retirees who withdrew large lump sums from their savings experience particular financial strain. One in five such retirees depleted these funds within just four-and-a-half years on average—a decrease from five years in both the previous two studies by MetLife—and estimate they have approximately eleven years’ worth left if any remains. Even high savers with $200,000 or more averaged only fourteen years’ duration.
Among those who exhausted lump sums completely, half reported financial hardship; nearly all said having another source of income could have prevented these difficulties. Regret is common: “61% of these lump sum retirees who made major purchases in their first year regret those decisions,” compared with just a third eight years ago.
Guaranteed lifetime income is increasingly viewed as crucial for stability during retirement:
– “92% of pre-retirees and 86% of retirees say a monthly retirement ‘paycheck’ is very important or absolutely essential to pay their bills.”
– Retirees receiving annuity payments cite greater financial security (94%), predictable budgets (92%), and reduced anxiety about outliving savings (51%) as benefits.
– Nearly half (46%) who took lump sums but had access to annuities wish they had chosen guaranteed lifetime income instead—a rate three times higher than earlier studies.
“These findings highlight the urgent need for solutions that help retirees turn their savings into reliable, lifelong income. At MetLife, we believe the most effective way to guard against longevity and market risks is by providing guaranteed income at the point of retirement,” Rafaloff said. “Establishing a base level of retirement income through an annuity enables retirees to cover everyday expenses and reduce the risk of spending down their savings too quickly.”
The survey was conducted online by The Harris Poll on behalf of MetLife between October 8–31, 2025 among more than two thousand adults aged fifty to seventy-five—both retired individuals with defined contribution balances when they retired or receiving monthly annuity payments from such plans, as well as employed individuals planning near-term retirements while currently participating in similar employer-sponsored plans.
For further details or access to the full report: metlife.com/2026paycheckstudy.
MetLife operates globally across more than forty markets providing insurance products including annuities designed to help customers build stable futures.
