Americans Underestimate Family Risks in Retirement Planning, New Study Finds

Planning for retirement involves navigating many unknowns, from investment performance to healthcare costs and how long savings will last. However, a new study from the Center for Retirement Research (CRR) at Boston College, published on November 10, 2026, indicates that many Americans are overlooking a significant factor: family-related financial risks. These risks can severely impact economic security in their golden years.

The report, based on a survey of 1,019 Americans aged 45-80 conducted in March 2026 in collaboration with Jackson National Life Insurance and Greenwald Research, reveals that expectations about these family challenges do not always align with reality. This leaves many individuals without the necessary preparation.

When Family Becomes a Source of Financial Uncertainty

Family risks fall into two broad categories, according to the CRR study. First, there are changes in family structure, such as widowhood or divorce. These events can significantly erode both income and wealth.

Second, there's financial support provided to other family members. This could be planned, like helping a child with college tuition or a down payment on a house, or more unexpected, such as paying for medical or long-term care for a sick family member. The study suggests that while a family can be a support network, it can also create unforeseen financial burdens.

The Gap Between Expectation and Reality

One of the research's most important findings is that people nearing or in retirement don't always have an accurate sense of how likely these risks are. The CRR compared respondents' expectations with the actual experiences of approximately 15,000 individuals from the University of Michigan's Health and Retirement Study (HRS). The data shows a notable difference between what people anticipate and what actually happens in similar households.

This suggests that, while family risks are common and costly, many individuals may not fully understand them or take steps to prepare. The study also examined whether households have taken concrete actions to anticipate these events, and the evidence suggests limited preparation.

The Uncertain Future of Social Security

Adding to this situation is another significant concern for Americans' financial future: potential cuts to Social Security benefits. According to CNBC, retirement benefits could face an automatic, across-the-board cut in just six years, by 2032. The program's trustees project a 22% cut if no intervention occurs before that date.

The Congressional Budget Office (CBO) is even more pessimistic, anticipating that the retirement trust fund could run out by mid-2032, leading to benefit cuts of 26%. This could mean an average reduction of $500 in monthly benefits for retirees nationwide, according to a June report from the Committee for a Responsible Federal Budget. In 29 states, average reductions would be even larger.

This outlook adds pressure to individual retirement planning. The ability of senators elected this November to address this reform is critically important for retirees and the economy, but political polarization could hinder an agreement, as Shai Akabas, vice president of economic policy at the Bipartisan Policy Center, explained to CNBC.

You can read more about other economic challenges in our country, such as the behavior of consumer prices, which rose more than expected in October.

Why it matters

The combination of underestimating family financial risks and the threat of Social Security benefit cuts creates a challenging scenario for retirement planning. It's important for individuals to consider all potential obstacles, both personal and systemic, to ensure a stable retirement. Failing to prepare for these events can have a significant impact on the quality of life for older adults and their families.