Fewer Americans counting on a 'miracle' to retire comfortably — but here's what still keeps them up at night

Core Insights - A significant increase in optimism regarding retirement security among U.S. investors, with those believing it will "take a miracle" to achieve retirement security dropping from 39% in 2023 to 21% in 2025 [1][2] Group 1: Market Performance - The positive shift in sentiment is largely attributed to strong stock market performance, with the S&P 500 delivering over 20% returns for two consecutive years, significantly higher than its historical average of around 10% [2] - In contrast, the year 2022 saw a decline of approximately -18% in market returns, highlighting the volatility of market conditions [2] Group 2: Investor Concerns - Despite increased confidence, 69% of American investors express feelings of instability in the current economic environment, with concerns about finances persisting [3] - Inflation remains a primary source of anxiety, with 41% of Americans worried about its impact on retirement security, and 60% reporting reduced savings due to high living costs [4] - The classic 4% rule for retirement withdrawals has been revised to a 4.7% rule, reflecting modern costs and asset class mixes [6] Group 3: Retirement Anxiety - A significant concern among Americans is the fear of running out of money in retirement, with 64% indicating this worry is greater than the fear of dying [7]