MetLife’s research shows that more retirees and pre-retirees are realizing the savings strategies that sustained previous generations are not keeping pace with today’s economic pressures. Pre-retirees now expect their savings to last, on average, only 15 years after retirement, down from 19 years just four years ago², despite many expecting to spend 25 to 30 years in retirement³.

“America has reached critical juncture,” said Roberta Rafaloff, vice president and head of institutional income annuities at MetLife. “Economic volatility, rising costs and increasing longevity are reshaping the retirement landscape. Even diligent savers are finding their retirement outlook disrupted. Without reliable income streams to anchor their finances, retirees face an elevated risk of outliving their savings.”

In light of these challenges, both pre-retirees and retirees are more likely than in previous years to seek guidance before deciding what to do with their defined contribution plan balance. In 2022, 86% of pre-retirees looked for guidance vs. 95% today. For retirees, the percentage jumped from 81% in 2022 to 90% today.

A Widening Gap Between Vision and Reality
While pre-retirees continue to envision a fulfilling and active retirement, many are unsure whether they can afford it. Daily living costs and healthcare expenses consume a large share of retirement resources. Among retirees, inflation and unexpected expenses are cited as top reasons their actual experience feels more constrained than what they had imagined, noting, for example, that “in today’s economy, it’s hard to make ends meet with [their] current income” and “current inflation has affected some of the plans [they] had for [their] retirement.”

Around three in five pre-retirees and retirees admit they underestimated how much they needed to save for retirement (62%, 59%, respectively) and overestimated how long their savings would last (61%, 57%). Nearly half (46%) of pre-retirees expect to cut back on spending due to fears of running out of money, while 44% of retirees already have.

Savings are Depleting Faster – Especially for Lump Sum Recipients
Retirees who chose to withdraw a significant sum directly from their retirement savings face the greatest financial strain, exhausting their savings faster than ever. One in five retirees who took a lump sum (20%) have run through their withdrawals in just 4½ years after they retired, on average – down from 5 years in 2022 and 5 ½ years in the 2017 research. Half of retirees who have lump sum money remaining (51%) are concerned it will run out, and they estimate that, on average, they have approximately 11 years’ worth of money left. Even among high savers with $200,000 or more, the average duration is only 14 years.

Half of retirees who have completely drained their lump sums (51%) report financial hardship, and nearly all (98%)⁴ say an additional layer of retirement income could have prevented it. Regret is surging: 61% of these lump sum retirees who made major purchases in their first year regret those decisions, up from 33% in 2017.

Guaranteed Income Viewed as Foundational to Retirement Stability
In an environment defined by uncertainty, having a reliable stream of retirement income, guaranteed monthly payments that continue for life, is increasingly viewed as essential:

• 92% of pre-retirees and 86% of retirees say a monthly retirement “paycheck” is very important or absolutely essential to pay their bills
• Retirees with annuities report financial security (94%) and more predictable budgets (92%) as key benefits of this decision, and less worry about outliving their savings (51%).
• Nearly half of retirees who took lump sums and whose employer offered an annuity (46%) now wish they had selected guaranteed lifetime income instead – more than triple prior years (vs. 15% in 2017, 13% in 2022).

“These findings highlight the urgent need for solutions that help retirees turn their savings into reliable, lifelong income. At MetLife, we believe the most effective way to guard against longevity and market risks is by providing guaranteed income at the point of retirement,” said Rafaloff. “Establishing a base level of retirement income through an annuity enables retirees to cover everyday expenses and reduce the risk of spending down their savings too quickly.”

About the Study
MetLife’s 2026 Paycheck or Pot of Gold Study was conducted online in the US by The Harris Poll on behalf of MetLife among 1,007 “retirees” who were defined as adults aged 50-75 years old who are retired, and had a balance of $25,000 or more in a defined contribution (DC) plan (e.g., 401(k), 403(b), 457, Thrift Savings Plan) when they retired and withdrew all or a portion of that balance or receive monthly annuity payments of $500 or more from a DC plan, and 1,015 “pre-retirees” who were defined as adults aged 50-75 years old who are employed full-time, planning to retire within 5 years, currently enrolled in an employer’s defined contribution plan (e.g., (401(k), 403(b), 457, thrift savings plan), and knows the type of defined contribution plan they have through their employer. The survey was conducted from October 8-31, 2025. To read the full report, visit: metlife.com/2026paycheckstudy.

About MetLife
MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (“MetLife”), is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management to help individual and institutional customers build a more confident future. Founded in 1868, MetLife has operations in more than 40 markets globally and holds leading positions in the United States, Asia, Latin America, Europe and the Middle East. For more information, visit www.metlife.com.