Millions of Americans Retiring in 2025 Amid Rising Costs

As of November 2025, a staggering 4.2 million Americans are set to turn 65 and leave the workforce, facing the task of living off their savings in retirement. This comes at a time when the cost of living is escalating, posing a significant challenge for these retirees.

Financial experts Jean Chatzky and Elizabeth Gore are urging caution when it comes to retirement planning decisions. They warn against the dangerous idea of rolling 401(k) funds into a checking account, as this would result in hefty taxes and potential penalties. Instead, they recommend carefully selecting where to roll over retirement savings, ensuring the money remains in a tax-deferred account to continue growing.

Another retirement savings tool the experts highlight is the Health Savings Account (HSA). With its triple tax advantage – contributions, growth, and withdrawals for qualified medical expenses are all tax-free – the HSA can serve as a valuable supplemental retirement account. However, they caution that there are rules around contributing to an HSA once enrolled in Medicare, which retirees must be mindful of.

Overall, the key message is the importance of being proactive and disciplined when it comes to retirement planning. By understanding the various options and their implications, Americans nearing retirement can better position themselves to maintain their standard of living in the years ahead.