New data showed a deepening retirement crisis with home equity now central to survival
Typical American retirees enter 2026 believing they need far more savings than they actually have, and many fear they would not be able to keep their homes as costs rise.
A new Clever Real Estate survey of 1,000 retirees found they thought peers would need an average of $823,800 to retire comfortably this year, yet reported average savings of just $288,700 – a gap of more than half a million dollars.
Savings gap fuels crisis mood
Retirees surveyed were blunt about the shortfall. Sixty-four percent said the United States is in a retirement crisis, while 41% believe retirement will be possible for the typical American in 25 years.
Over a quarter of retirees (29%) also said they have no money saved for retirement at all.
The emotional toll was stark. “A majority of retirees (51%) say they have no plan if their retirement savings run out, and 43% say they would prefer to die than have that happen.”
Others were already cutting back, with 14% avoiding medical appointments or treatments to preserve their retirement savings, while 1 in 8 (12%) admit to skipping meals for the same reason.
Home equity now central to survival
Housing costs sat at the heart of that anxiety. The survey found 25% aren’t confident they’ll be able to afford their current housing costs a year from now, while 73% would do everything possible to stay in their home even if they could barely afford it.
For many, the house has become the retirement plan. “Nearly half of retirees (45%) go as far as saying they believe their home is the only thing allowing them to have a comfortable retirement.” Yet “an identical 73% say they couldn’t afford to buy a home in today’s market.”
In an earlier interview with Mortgage Professional America, Ben Sillitoe, president of Retire Right Mortgage, said “people are looking at their home equity as they get closer to retiring, and they’re wondering how they can use that money during retirement, especially since it’s the largest asset for a lot of people.”
He added that reverse mortgages have been shown “to be very effective at mitigating one of the main risks during retirement, which is running out of money during a potentially long retirement.”
Broader policy worries deepen unease
Retirees’ concerns extended beyond their own balance sheets. The Clever poll reported that 54% of respondents aren’t confident Social Security will continue to provide full benefits for the rest of their lives. Moreover, 36% believes Social Security benefits will actually run out in their lifetime.
That contrasted with independent projections from the Social Security trustees, who estimated the combined trust fund reserves would be depleted in 2035, after which tax income alone could still cover roughly four-fifths of scheduled benefits.
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