Americans are slightly less afraid of retirement as inflation cools, but the biggest fears about Social Security, healthcare and savings have barely moved, a new metric reveals

The fear surrounding retirement in the US eased slightly in August, but the latest reading suggests the improvement may not mean Americans feel secure about their financial future. The Retirement Fear Index fell to 120.7 in August 2026, down from 121.7 in July, according to a new monthly update from RetireMentors, a firm developed by longtime financial writer David Conti that tracks the fears of retirees and pre-retirees.

The reading remains 20.7% above the index's long-term baseline of 100. The August reading marks the first decline since the index was launched in June this year. But the report says the drop was largely driven by temporary or cyclical concerns, while deeper worries around Social Security, healthcare and running out of money remained largely unchanged.

Retirement fears cool, but only slightly

The biggest change came from concerns about inflation and everyday costs, which fell by eight intensity points. The report points to a sharp slowdown in inflation and improving consumer sentiment as key reasons for the decline. Headline CPI fell from 4.2% in May to 3.5% in June, while core CPI declined from 2.9% to 2.6%.

The June inflation report, released on July 14, also showed a 5.7% monthly decline in energy prices, the biggest monthly drop since April 2020. At the same time, the University of Michigan Consumer Sentiment Index jumped 11.5% to 55.2, its highest level in five months. Year-ahead inflation expectations also fell from 4.6% to 4.2%.

But the improvement in sentiment did not translate into a broad decline in retirement fears.

“The August reading is the useful case for a meta-analysis, not a single-signal index,” said Conti, the founder of the firm. “Consumer sentiment jumped 11.5% in July. If you read the headline, it looks like the retirement anxiety story is over. It is not. Inflation fear did cool. But the structural fears that actually determine whether a household outlives its money — Social Security, healthcare, longevity — held at their July highs. A sentiment map shows both truths at once. That is what advisors and journalists need this month.”

Social Security remains the biggest retirement fear

Social Security and pension insolvency remained the biggest concern in the August index, with an intensity score of 148. Healthcare and long-term care followed at 131, while concerns about outliving savings stood at 117.

The report says these structural concerns barely changed from July. Healthcare costs are also adding to concerns. Genworth's 2026 Cost of Care survey showed assisted living costs rising 5% to $6,200 per month. Meanwhile, Vanguard's reported median 401(k) balance of $44,115 remained unchanged.

Interest rates add another worry

Financial market uncertainty also increased in August. The Federal Reserve's July 29 meeting left interest rates unchanged, but three policymakers dissented in favor of a rate hike. The report describes it as the first three-way dissent in that direction since September 2016.

That development pushed the index's Market Volatility and Sequence category up four intensity points. The concern is particularly relevant for retirees because market losses early in retirement can have a larger effect on how long savings last.

Family caregiving fears also increased

Another category that rose was Family Caregiving and Isolation, which increased by 2 points. The report links the increase to an EBRI caregiver report released July 22. Caregiving can create both financial and emotional pressure for older Americans, particularly when retirement savings must also cover the needs of family members.

Retirement anxiety remains above normal levels

Despite August's decline, the index remains significantly above its baseline. The latest reading suggests that Americans' retirement concerns may be split into two groups. Short-term worries, particularly inflation and everyday expenses, are showing signs of cooling. More deeply rooted concerns around Social Security, healthcare and longevity remain elevated. The next reading is expected in the first week of September 2026.