43% Lose Confidence in Economy as Inflation Fears Climb

Emotional Optimism Fails to Translate Into Financial Readiness

Americans Worry About Retirement, But Few Have a Plan

The IRALOGIX Retirement Readiness Index (IRRI) held steady at 45.1 in the second quarter of 2025, down slightly from 45.8 in Q1. This stability comes even as 43% of respondents say they’ve lost confidence in the economy and 71% worry that inflation will erode their retirement savings. An IRRI score below 50 signals “Moderate Risk,” meaning many pre-retirees could struggle to maintain their standard of living in retirement without enough savings, healthcare planning, or financial confidence.

IRALOGIX launched the Retirement Readiness Index (IRRI) in March 2025 to give a clear, national view of how prepared Americans are for retirement. The IRRI turns the complex challenges of retirement planning into a single number that can be tracked over time. Using data from a nationally representative survey, the index measures readiness across five key areas: Savings and Investments, Healthcare Readiness, Lifestyle and Spending, Emotional Well-being, and Economic and Policy Confidence.

“The fact that our Retirement Readiness Index barely moved this quarter shows that many Americans are experiencing inertia when it comes to getting ready for retirement,” said Peter de Silva, CEO of IRALOGIX. “People are feeling the pressure from market ups and downs and an uncertain economy, but too many aren’t taking the steps needed to strengthen their plans. Now is the time to act if Americans want to move from just getting by to building a secure retirement.”

Retirement Readiness: Potential vs. Reality

When analyzing the results, each retirement readiness category (such as Healthcare or Savings and Investments) was assigned a maximum number of points it could contribute to the overall Retirement Readiness Score. This represents the “full potential” if Americans were perfectly prepared in that area. Based on survey responses, the “potential achieved” percentage tells us how much of that maximum was actually reached. The lower the percentage, the further away Americans are from being fully prepared in that dimension.

Where Americans Are Falling Behind: The Weakest Dimensions

Healthcare Readiness: 36.7% of Potential Achieved

Out of 15 possible points, Americans achieved just 5.5 points, equating to 36.7% of the ideal in this critical area. This is a decline from last quarter’s 42.1%, making it again the lowest-performing dimension.

Many Americans still lack a clear plan for managing healthcare costs in retirement, from long-term care to unexpected medical bills. This gap leaves them vulnerable to the kinds of financial shocks that can derail even the best-laid retirement plans. Confidence in Medicare’s ability to meet future needs is low, and concerns about financial ruin from chronic illness or elder care persist. This aligns with past findings that healthcare costs are a primary reason retirees withdraw more than planned, underscoring that healthcare continues to be underprioritized before and during retirement.

Economic and Policy Confidence: 42.0% of Potential Achieved

Out of 20 possible points, Americans achieved 8.4 points, equating to 42.0% of potential, down from 50.8% last quarter.

Confidence in handling economic and policy changes is slipping. Persistent inflation, uncertainty about Social Security, market swings, and trade disputes have left many Americans uneasy about their financial future. While some are using tax-advantaged retirement accounts, many aren’t taking full advantage of these tools. Inflation remains a top concern, highlighting the need for practical guidance to help pre-retirees protect their savings against rising costs.

Savings and Investments: 42.3% of Potential Achieved

This category, the largest influencer of overall readiness, has 35 possible points. Americans achieved 14.8 points, reaching 42.3% of potential, slightly down from 43.2% last quarter.

Even with markets stabilizing, many Americans aren’t saving enough and don’t know if what they’ve set aside will last. Confidence in having enough for retirement is still low. Too few people have written plans, and many aren’t working with advisors to strengthen their strategies. Inflation is also making it harder to boost contributions. Tools like auto-escalation, IRA funding, and catch-up contributions can help, but more Americans need to take advantage of them to improve their readiness.

Where Americans Are Doing Better: The Strongest Dimensions

Emotional Well-being: 55.9% of Potential Achieved

Out of 15 possible points, Americans achieved 8.4 points, equating to 55.9% of potential, up from 48.3% last quarter, making it the highest-scoring dimension this quarter.

Many Americans feel emotionally prepared for retirement. Strong social ties, hobbies, and plans for staying engaged give them a sense of optimism about this next chapter. But many still haven’t talked with family about their plans or mapped out how they’ll handle the transition, which can lead to stress down the road. Advisors have a chance to help turn this positive outlook into concrete steps that support a smoother, more secure retirement.

Lifestyle and Spending: 48.6% of Potential Achieved

Out of 15 possible points, Americans achieved 7.3 points, equating to 48.6% of potential, up from 46.5% last quarter.

Americans are getting slightly better at matching their retirement plans with the lifestyles they want. Still, many don’t have a clear spending plan or a realistic budget for retirement that accounts for rising costs, healthcare, and changing income sources. Many people continue to rely heavily on income that isn’t guaranteed and expect they will need to work during retirement. For many, retirement now means part-time or phased work, driven by both financial needs and personal choice.

“The IRRI makes it clear that while many Americans feel ready for retirement emotionally, they aren’t financially prepared where it counts,” said de Silva. “It’s troubling to see declines in healthcare planning and confidence in the policy environment. Pre-retirees can’t afford to ignore these gaps. This is where employers and advisors can step up to help people turn good intentions into real plans. Emotional optimism is a good start, but it needs to lead to financial readiness if Americans want to retire with security.”

“The latest IRRI results show that being worried about the future isn’t the same as being ready for it,” said Pete Littlejohn, President of IRALOGIX. “Americans have real concerns, but many aren’t taking the steps they need to protect themselves. This is where advisors, employers, and providers can step in to help people move from worry to action.”

Looking Ahead

IRALOGIX will redeploy the IRRI to track trends over time to elevate the national conversation around retirement readiness, paving the way for Americans to retire with dignity and security.

Methodology

The IRALOGIX Retirement Readiness Index score is a data-driven measure of how prepared Americans are for retirement, expressed on a scale from 0 to 100. The score is derived from a nationally representative survey in which respondents answered 20 questions across five dimensions. Each question was rated on a 1-5 scale, with responses converted to a 0-100 score and weighted according to its importance within its category. The five dimensions were also weighted based on their overall contribution to retirement readiness, with financial preparedness emphasized the most. Each respondent’s weighted scores were totaled to generate an individual readiness score. The national Retirement Readiness score reflects the average of all responses. Risk zones in the IRRI are based on common indexing practices and are: High Risk (0-34.9), Moderate Risk (35 - 49.9), Caution Zone (50-64.9), Prepared (65-79.9), and Retirement Ready (80-100).

The survey was conducted in late June 2025 on behalf of IRALOGIX. Respondents were drawn from a national sample of pre-retirees.

To schedule an interview or for more information on the survey results or the index, contact Scott Sunshine.

About IRALOGIX™

IRALOGIX is redefining the $17 trillion IRA marketplace through its industry-leading technology-enabled, fully paperless, white-label IRA record-keeping and technology solutions. The company’s proprietary technology solutions enable any financial institution to easily customize its IRA offering and compete effectively in all segments of the IRA market, regardless of account size. Through modular technology, institutional clients have the choice to use their internal investment or advisory capabilities or select from key industry-leading providers. IRALOGIX complements your market strategy, streamlines your IRA service options, and helps you expand your business across all segments of the industry, profitably. For more information, please visit www.iralogix.com.

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43% have lost confidence in the economy and 71% worry inflation will erode their retirement savings.