This article contains affiliate links; if you click such a link and make a purchase, we may earn a commission.The ‘confidence paradox’: Boomers optimistic about retirement despite lack of planning. How to prep for ‘peak 65’

MoneywiseSat, April 11, 2026 at 11:05 AM UTC

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It comes as no surprise that Americans are paying more for necessities than they did last year (1).

In response, they’re tightening their belts — so much so that a Lightspeed survey found that 1 in 4 consumers will shop on Black Friday only for everyday essentials such as groceries, toiletries and household basics (2).

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Many working Americans aren’t stretching their dollars further in retirement either. Only 55% of adults surveyed by Prudential in 2025 said they’ve factored inflation into their retirement planning (3).

Despite this lack of planning, 89% of those surveyed have “high confidence” in covering essential retirement expenses. Prudential referred to this as a “confidence paradox,” where consumers feel confident without taking the proper steps to ensure retirement readiness.

“Feeling ready is very different than actually being ready,” Caroline Feeney, global head of retirement and insurance for Prudential, told CNBC (4).

“People feel ready, so they’re not taking the necessary action and plans now to start saving and leaning into closing what may be a real retirement gap for their futures that they’re not aware of.”

Regardless, boomers should consider inflation when planning for their retirement.

What’s at stake?

A lack of planning could become even more challenging. Baby boomers are in the midst of “peak 65,” with more than 11,200 Americans turning 65 every day through 2027 (5).

While 2026 brought a 2.8% cost-of-living adjustment (COLA) for Social Security benefits (6), it may not be enough to cover the rising costs of health care, housing and food. For example, the standard monthly premium for Medicare Part B rose from $185 in 2025 to $202.90 in 2026 — a 9.7% increase (7).

The war in Iran has compounded the problem, leading to spikes in everything from travel and transportation costs to grocery prices to mortgage rates (8). The result? A lack of affordability for many Americans — particularly older adults on a fixed income.

What’s more, Goldman Sachs Asset Management research reveals that retirees’ spending increased 3.6% annually from 2000 to 2023, while the consumer price index rose 2.6% over the same period (9).

Many people think they’ll spend less once they retire, certified financial planner Uziel Gomez, founder of Primeros Financial in Los Angeles, told CNBC, adding, “When in reality, they usually spend more because they have more time to do a lot of the things that they enjoy doing.”

Here are a few ways to prepare, regardless of whether you’re retiring now or in 20 years.

Read More: 5 essential moves to make once you’ve saved $50,000

Build a better budget

Your golden years are meant for enjoying life, not stressing over every dollar. With a little planning and a realistic budget, you can make your nest egg work harder for you once the steady paychecks stop.

For some retirees, that might mean cutting housing costs by downsizing and redirecting those savings toward travel or hobbies.

Because there’s no one-size-fits-all strategy, budgeting apps like Monarch Money can be an excellent tool for tracking your spending and meeting your financial goals.

Monarch Money puts all your finances under one roof, from your banking statements to your investments. You can also add separate or joint accounts to your dashboard, which can be great for tracking grocery runs for couples on a fixed income.

The app is also well reviewed. Both Forbes and the Wall Street Journal ranked Monarch Money as their best budgeting app for 2025.

And the best part? Monarch Money offers a seven-day free trial so you can see if it’s right for you. If you like what you see, you could then snag 50% off your first year with code WISE50.

Plan with a professional

If you want a bit more guidance, a financial planner can help tie everything together. They’ll look at your full financial picture and map out a plan that makes your retirement dollars work smarter.

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According to the Prudential survey, people who work with a financial advisor are more confident about their financial security and have a clearer vision for retirement than those who don’t.

And finding a vetted financial advisor is now easier than ever, thanks to platforms like Advisor.com.

All you have to do to get started is answer a few basic questions about your current financial situation and future goals. Then, Advisor.com’s AI-powered matching tool will comb through its network of fiduciaries to find the best match for you — all for free.

From there, you can set up a free, no-obligation consultation to see whether they’re the right fit for you.

Secure yourself from market shocks

Another factor to consider is your portfolio’s resiliency to market shifts and instability. A well-diversified portfolio typically includes a mix of stocks and bonds, but alternative assets — like gold — are becoming progressively more accessible to average Americans.

The precious metal has long been viewed as the ultimate safe haven — and has proven its mettle by hitting an all-time high this year, with some investors predicting even higher prices to come throughout 2026 (10).

One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold.

Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold — making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainty.

Download your free information guide today to learn how to get up to $10,000 in free silver on qualifying purchases.

Just keep in mind that gold is often best used as one part of an otherwise well-diversified portfolio.

Are you caught in a “confidence paradox”?

While experts note that the COLA can help retirees tackle inflation better than most financial products, older Americans are still struggling.

“A 20% lift over four years is life-changing, even though it might not match the economy itself,” David Freitag, a financial planning consultant and Social Security expert at MassMutual, said of the recent cost-of-living adjustment, adding, “These are significant increases that make a difference in people’s lives (11).”

Yet according to a survey conducted by AARP in September, only 22% of people aged 50 and above feel the cost-of-living adjustment is enough to keep up with inflation, with almost three-quarters (72%) saying the COLA should be 5% or higher (12).

As you get closer to retirement, every dollar starts to matter more. Although budgeting and planning ahead help, you could also tap into deals and discounts tailored to older Americans.

For example, senior-focused organizations like AARP offer discounts on almost everything — from prescriptions and dental plans to travel, entertainment and insurance.

AARP can also help you make informed financial and health decisions.

AARP members get access to guides that can help you make the most of Social Security, choose the right Medicare plan and uncover other government benefits — potentially saving you thousands.

Sign up with AARP today and get 25% off your first year.

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Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

AARP (1), (12); Lightspeed (2); Prudential (3); CNBC (4), (8); Alliance for Lifetime Income (5); Social Security Administration (6); Centers for Medicare & Medicaid Services (7); CBS News (9); Reuters (10); Goldman Sachs Asset Management (11)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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