If you’re feeling fearful and insecure as you approach retirement, you’re not alone. About 65% of retirement savers surveyed by global investment management firm Schroders said they worry too much about money(1). Another 56% said their financial stress may even be affecting their health.
So if you’re worried about medical bills, inflation, lack of savings, and interest rates, these feelings are completely normal. However, if you retire after hitting certain benchmarks, it could be a sign that your golden years may be brighter than you expected.
Here are five of the most telling signs of retirement in the United States in 2026.
It’s increasingly common to take on debt in retirement—especially mortgage debt. According to a 2023 report from the Harvard Joint Center for Housing Studies, in 1989, only 24% of homeowners aged 65 to 79 had an outstanding mortgage(2). At the time, only 3% of households over 80 held a mortgage. By 2022, these ratios will jump to 41% and 31% respectively.
Even for many young Americans in the prime of their careers, dealing with monthly interest payments can be stressful. But if you’re retired, living on a tight budget and on a fixed income, the stress can be magnified.
So if you’re one of the lucky majority of seniors who successfully pay off the loan on your primary home before retirement, you’re in a better position than most of your peers.
Not only is health care expensive in the United States, but costs are rising rapidly. Obama-era Affordable Care Act (ACA) subsidies are set to expire on December 31, which could result in double-digit increases in premiums(3). At the same time, according to the American Association of Retired Persons (AARP), the prices of 25 of the most expensive drugs in Medicare Part D have doubled in 11 years (4).
Not surprisingly, most Americans are worried about paying more for medical care. According to an annual survey by West Health and Gallup Roughly, 47% of respondents said they are worried about medical costs in 2026—the highest share since 2021(5).
In short, staying healthy and free from any chronic disease can change your wallet. If you are retired and are over 60 or 70 but are still in relatively good health, you are in better financial shape than many older people.
Read more: Vanguard reveals what’s ahead for U.S. stocks, a wake-up call for retirees. Here’s why and how to protect yourself
Reality rarely lives up to the expectations set by your financial advisor or any spreadsheet you created during the retirement planning process. Many retirees find that their monthly and annual expenses exceed their budgeted budget. According to the Employee Benefit Research Institute’s (EBRI) annual survey(6), by 2024, approximately 31% of retirees will report that their annual expenses will be much higher or at least slightly higher than they can afford.
With that in mind, if your spending is lower than expected, it’s a good sign that your retirement is in better shape than most others. If you’re able to consistently live within your means for a few years, your retirement savings will be depleted and may give you some room to indulge in occasional luxuries.
The cost-of-living crisis is especially brutal for young Americans just starting their careers. To fill the gap, many young people are turning to the Bank of Mum and Dad for help. According to Savings.com, as of 2024, 50% of parents with children over the age of 18 will provide at least some financial support to them (7). On average, this financial support is estimated at $1,474 per month.
This can be a significant drag on your personal finances, especially if you’re retired and living on a fixed income. But if your adult children have left home and are financially independent, it’s easier to focus on yourself.
Every retiree has a so-called “magic number” that kicks off a comfortable retirement. Schroders says that on average, retirees aim to have $1.28 million in savings and investments to meet their budget(1). That’s not far from the “magic number” of $1.26 million set by Northwestern Mutual.
These goals are often based on multiple variables that are difficult to predict with high accuracy over the long term. After all, there’s no magic crystal ball that lets you see where inflation, stock market returns and interest rates will be 30 or 40 years from now. But having a plan, even if imperfect, is better than improvising.
For this reason, you can prepare a thicker safety net to deal with it. If your retirement portfolio is 10 or 15 percent larger than your “magic number,” you may be better able to handle any unexpected obstacles and fluctuations.
Of course, exceeding your retirement goals is rare. According to EBRI, by 2024, only 17% of retirees say they have saved more than they need (6). So if you find yourself part of an exclusive group, you can rest assured that you’re better prepared than most of your peers.
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Schroeder (1); Harvard University’s Hoxing Joint Center for Research (2); ABC News (3); American Association of Retired Persons (4); Gallup (5); European Research Institute (6); Savings.com (7)
This article provides information only and should not be considered advice. It is provided without any warranty of any kind.