A recent survey conducted by D.A. Davidson found that nearly eight in ten (78%) Americans express concern about the impact of rising costs on their retirement. However, a concerning contrast emerged as only 48% of respondents acknowledged that they had factored these increased costs into their retirement planning.
D.A. Davidson recently announced survey results revealing that nearly eight in 10 Americans say they are concerned about the impact of risingcosts on their retirement – yet fewer than half have factored these increasing costs into retirement planning .
Furthermore, only 16% say they feel very knowledgeable about expected healthcare costs in retirement. According to the latest estimates from Fidelity Investments, healthcare expenses for an American couple retiring at age 65 in 2025 average $345,000, up nearly 41% from the $245,000 estimate in 2015.
“Healthcare is one of the most significant, and yet still underestimated, expenses that most retirees will face,” said Andrew Crowell. “Healthcare inflation typically runs at least twice the rate of overall inflation, yet many people experience denial over the fact that this could impact their retirement strategy one day.
”If healthcare costs result in being higher than expected in retirement, over one-third of Americans say they’d have to cut back on everyday spending, and 34% would reduce travel or leisure. And they’re not alone. Six in 10 Americans say they’ve already witnessed someone in their life struggle with healthcare costs in retirement.
“Unexpected medical expenses can derail even well-structured retirement strategies, but the good news is that proactive planning can help pre- and current retirees better protect their financial security,” Crowell said. One savings tool available for healthcare costs is an HSA, a tax-advantaged savings account that allows individuals with high-deductible healthplans to set aside money for qualified expenses. Some of the money in an HSA can be invested and compound tax-free over time.
Twenty-one percent of Americans have an HSA, and just 40% of those HSA owners say they are using theirs for long-term savings for healthcare costs.
“HSAs are one of the most powerful tools we have available for retirement planning. Their triple tax advantage makes them an effective planning tool for covering healthcare costs in retirement. For individuals who are eligible, consistently funding and strategically investing in an HSA can greatly reduce the burden of healthcare costs in retirement,” Crowell said.
Despite widespread concerns over healthcare costs in retirement, only 23% of Americans have ever discussed the topic with aIn fact, Americans are just as likely to get retirement healthcare guidance from friends and family as they are from government and Medicare resources . Additionally, nearly one-quarter say they primarily get their healthcare cost-planning information from online or print articles or social media.
“Being prepared for rising healthcare costs is important, but being informed is the first, most crucial step,” Crowell said. “Working with a financial advisor can help you understand and anticipate these costs more accurately so you can make informed decisions that protect your long-term financial security. ”To boost employee morale and attract long-term talent, a growing trend sees moreoffer relief for the emerging post-retirement fears employees are struggling with.
Paychex reports that more businesses are offering improved retirement benefits in 2026, driven by a surge in small-business adoption and a focus on personalized, holistic financial wellness. Companies are leveraging SECURE 2.0 Act provisions for automatic enrollment and matching while also integrating emergency savings and student loan support to aid long-term retention.
Access to retirement plans at small businesses reached nearly one in three by 2025, with high growth at firms with fewer than 10 employees. Employers are adopting new rules, including Roth matching and emergency savings features, to boost participation and meet immediate financial needs. Beyond just a 401, companies are adding financial coaching, student loan repayment assistance and student loan-based retirement matching. Employers are moving away from one-size-fits-all benefits, using tailored offerings based on life stage.
With 31% of employers concerned that workers are not on track for a secure retirement, companies are prioritizing employer matches as a key retention tool. Questions remain about whether these trends are sustainable. With benefits costs rising, smaller businesses may struggle to balance with offering generous retirement contributions. What’s clear from the research, though, is that anxiety about post-retirement preparedness is increasing, so those businesses that invest in providing comfort are winning votes of confidence from their employee teams.
D.A. Davidson Survey Americans' Retirement Anxiety Healthcare Costs Impact On Retirement Retirement Planning Strategy Hsas As A Tool For Retirement Planning Retirement Guide From Government And Medicare Friends And Family Online And Print Articles And Social Media
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