Retirement Confidence Surges, But Readiness Gap Persists for Many Americans, MFS Survey Finds

Despite rising optimism, most participants still expect to save more, work longer, and navigate competing financial priorities

BOSTON, October 21, 2026--Americans are feeling more confident about retirement than they did a year ago, but many remain caught between long-term savings goals and mounting day-to-day financial demands, according to new findings from the 2026 MFS Global Retirement Survey.

The survey found that 41% of US workplace retirement plan participants are now very or extremely confident they will be able to retire at the age they want, up 13 percentage points from 2025 and the highest level reported in recent years. Yet nearly three-quarters say they will need to save more than planned, while 60% expect to work longer than planned. At the same time, 75% say competing financial priorities prevent them from saving adequately for retirement. Beneath that improvement in confidence lies a more complex reality: inflation, housing costs, emergency savings needs, and other competing financial priorities continue to make retirement planning difficult for many Americans.

"Retirement confidence is encouraging, but confidence alone does not guarantee retirement readiness," said Jeri Savage, Lead Retirement Strategist at MFS. "Many participants feel more optimistic about their futures, yet they continue to face difficult financial decisions that can affect their ability to achieve their retirement goals. The challenge today is helping people balance immediate financial realities with long-term retirement needs."

Financial Pressures Continue to Shape Retirement Outcomes

While inflation remains the leading financial concern across generations, participants report a wide range of competing priorities that make saving for retirement more difficult. Three-quarters of respondents say other financial obligations prevent them from saving adequately for retirement, highlighting the increasingly complex financial decisions workers face throughout their lives.

The impact is especially pronounced among younger workers. Gen Z participants are more likely to cite day-to-day financial obligations and emergency savings needs as obstacles to retirement saving, while Gen X participants report greater concern about housing costs. Baby boomers are increasingly focused on healthcare expenses and retirement preparedness.

These findings suggest that retirement readiness is influenced not only by retirement savings behavior, but also by an individual's broader financial situation and life stage.