Retirement Readiness Holds Steady as Warning Signs Grow

The IRALogix Retirement Readiness Index held nearly steady in the second quarter of 2025, slipping slightly to 45.1, down from 45.8 in Q1. IRALogix is a technology company specializing in individual retirement accounts. Despite this small change, the score remains in the moderate risk zone, indicating that many Americans are not financially prepared to maintain their standard of living in retirement.

The apparent stability masks growing concerns under the surface, according to Charles Schwab & Co. data: 43% of respondents said they have lost confidence in the economy, and 71% said they fear that inflation will erode their savings, highlighting a growing gap between emotional optimism and actual financial preparedness.

The IRRI Index gathered its first data in March 2025, with the results unveiled in April. The survey providing data for the second version of the index was fielded in June.

The IRRI is intended to provide a single, trackable measure of Americans’ retirement readiness. The index includes Q1 data to establish a baseline for comparison. It scores overall preparedness on a 0-to-100 scale and draws from five core dimensions: savings and investments; health care readiness; lifestyle and spending; emotional well-being; and economic and policy confidence. Each category is expressed as a percentage of optimal readiness and weighted to reflect its impact on overall retirement security.

“The fact that our Retirement Readiness Index barely moved shows that many Americans are stuck in place,” said Peter de Silva, CEO of IRALogix. “There’s awareness and concern, but not enough action to improve retirement outcomes.”

Where Americans Are Falling Behind

Several core areas of readiness declined in Q2, according to IRALogix’s results:

Health care readiness dropped to 36.7% of potential achieved, down from 42.1% in Q1, remaining the weakest dimension overall. Despite rising health care costs and low confidence in Medicare, many respondents reported lacking a plan for long-term care or medical emergencies in retirement—leaving them vulnerable to financial shocks that can derail even strong retirement plans.

Economic and policy confidence declined to 42%, down from 50.8% in Q1. Concerns about inflation, Social Security’s long-term outlook, market volatility and political instability have undermined respondents’ sense of control over the broader economic landscape. While some respondents are using tax-advantaged retirement tools, most are not maximizing their effectiveness.

Savings and investments dipped slightly to 42.3%, from 43.2% in Q1. This remains the most heavily weighted category in the overall index. Many respondents are still not saving enough, and few have a written retirement plan. Inflation continues to erode contribution value, and adoption of tools like auto-escalation and catch-up contributions remains low, according to IRALogix’s data.

Where Americans Are Gaining Ground

Despite financial concerns, some areas saw meaningful improvement in Q2, especially those related to emotional readiness and lifestyle clarity.

Emotional well-being rose to 55.9%, up from 48.3% in Q1, making it the highest-scoring category this quarter. Many respondents reported strong social networks, hobbies and an optimistic view of retirement. However, this emotional readiness often is not backed by practical planning—such as discussing retirement expectations with family or creating a timeline for transition.

Lifestyle and spending increased to 48.6%, up from 46.5%. More respondents reported aligning their retirement goals with how they want to live, but many still lack a realistic budget or detailed financial plan. A significant number also expect to continue working in retirement—motivated by both financial need and a desire for purpose.