New Report Uncovers Red Flags for the Nation's 401(k)s and IRAs
Financial powerhouse Fidelity has released its 2026 State of Retirement Planning Report. According to its findings, there are major red flags about how Americans feel about their retirement preparedness, highlighting a growing generational divide over what the future holds.
Unfortunately, the report appears to be a bit of a red flag about how financially stable many people feel and the economy, potentially hinting at growing uneasiness about money.
No Generation is 100 Percent Confident About Retirement Prospects
The first thing to note about Fidelity's new report is how different generations feel about their retirement prospects. For example, 23 percent of Gen Z says they are confident they will be able to retire when and how they want. Meanwhile, 20 percent of Millennials and 36 percent of Gen X feel the same way. Oddly enough, 29 percent of Boomers say they aren't confident in their retirement prospects, despite the fact that the vast majority are already near or past retirement age.
Fidelity notes that it seems younger generations have greater confidence in their prospects than those closer to retirement age, raising questions about whether the younger generation is truly better prepared, or whether inflation is causing more retirees to worry about how their golden years will look. That may also be an indication that the nation's 401(k)s and IRAs aren't as robust as they once were, especially amid increased stock market volatility.
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More People Are Worried About Rising Costs
Fidelity also examined how the different generations viewed the rising cost of living. Here, the age groups were almost entirely in lockstep, with each group saying that nearly half of their focus was on saving money to keep up with the cost of living.
That's right in line with the reason many people cited when it came to why they weren't confident in their ability to retire on their own terms, with 36 percent of Gen Z, 42 percent of Millennials, and 47 percent of Gen X saying they didn't think they'd be able to afford to retire.
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More Americans are Expecting to 'Transition' Into Retirement
It used to be that you'd have your last day of work, everyone would gather around for some cake, and then you'd head home, never to return to work again. However, the Fidelity report states that 6 in 10 Americans plan to view their retirement more as a transition than a full stoppage. That includes the following breakdown:
- 34 percent of those surveyed said they plan to reduce their hours instead of fully retiring
- 30 percent say they plan to take on fewer work responsibilities
- 18 percent plan to transition to a freelance or gig work type job
- 32 percent say they will continue working as normal until they can retire
With so many working Americans deeply concerned about rising prices on everyday essentials, it's no surprise that fewer people view retirement as a "sure thing" anymore. While younger generations definitely feel more optimistic about the future, those getting closer to retirement age are likely starting to dip into their savings to cover rising costs and are more worried about what will happen once their earnings stop and prices continue to soar.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
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This story was originally published April 17, 2026 at 7:46 PM.