Americans are feeling more optimistic about their chances of a secure retirement — a lot more.

A new study from Natixis Investment Managers shows the number of U.S. investors who believe it will “take a miracle” to achieve retirement security dropped to 21% in 2025, a major change from 39% in 2023

This big swing in attitude is largely attributed to the excellent performance of the stock market lately. The S&P 500 has delivered two back-to-back years of returns over 20%, outpacing its historical return rate of around 10% (not adjusted for inflation). This is in stark contrast to 2022, when sluggish markets delivered a return of approximately -18%.

But despite the renewed confidence, 69% of American investors say the world presently feels unstable, and they worry about their finances. Inflation and high living costs also continue to cast a long shadow.

So, how can investors balance the advantage of these jumps in their portfolios with rising costs? Here are some steps you can take to bolster your retirement security.

The impact of inflation
Inflation has been a primary source of anxiety. Around 41% of Americans surveyed by Natixis are worried about inflation’s impact on their retirement security, while 60% say they’ve cut back on savings because of high living expenses. This has sparked concern that savings and investment gains simply won’t go as far when it’s time for people to retire.

“When they look at how they’re feeling about retirement, they feel good overall, but there are certain things that are making them uncomfortable,” Dave Goodsell, executive director of the Natixis Center for Investor Insight, told CNBC [2] in an article published Sept. 9.

A number of concerns are presently weighing on the minds of Americans planning for retirement. Inflation and tariff costs are taking a bite out of household budgets. The classic 4% rule has also been rewritten by its creator, William Bengen, and is now the 4.7% rule, accounting for modern costs and a new mix of asset classes Americans are more likely to have.

Concern about running out of money in retirement is rampant, with one survey from Allianz reporting that 64% of Americans worry more about this issue in retirement than they do about dying.

Read More: Finance.yahoo