A recent survey has revealed that nearly a third of Americans believe full retirement may never be within their reach. The 2024 Everyday Wealth in America report, carried out by Greenwald Research for Edelman Financial Engines, highlights the growing sentiment among workers in the United States that this traditionally seen as a life milestone, is becoming increasingly elusive. According to the findings, around 33% of participants expressed doubts about ever fully retiring, while 6% of the 3,008 respondents believed they would never stop working altogether.
This is not the first time such concerns have been raised. Retirement has been shifting away from its earlier definition, where individuals could anticipate leaving the workforce at a set age. A Gallup survey conducted between 2002 and 2007 showed that 41% of adults aged 60 to 64 had retired, along with 76% of those between 65 and 69. Fast forward to the period between 2016 and 2022, and the numbers have shifted noticeably. Only 32% of individuals aged 60 to 64 and 70% of those between 65 and 69 were no longer working.
This trend aligns with other recent studies. The Pew Research Center noted that approximately 20% of Americans aged 65 and above were still part of the workforce in 2023. This marks a sharp increase compared to 35 years earlier when this number was significantly lower. In addition, the average anticipated retirement age has been creeping upwards. Non-retirees now expect to retire at around 66 years old, compared to an average retirement age of 60 in 1995. This exceeds the official full retirement age for Social Security by a year, underscoring how the concept of retirement has evolved.
Supporting this shift in expectations is data from the WTW 2024 Global Benefits Attitudes Survey, released during the summer. This report found that many older workers are no longer viewing retirement as a complete end to their working lives. Instead, they are opting for a gradual transition. Out of those respondents already navigating the transition to retirement, 61% reported reducing their working hours, while 41% indicated they had taken on fewer job responsibilities.
As Jim Davis, a senior wealth manager at Aspen Wealth Management, explained “In previous generations, retirement was often seen as a distinct, full-stop event—people worked until a specific age and then exited the workforce entirely. Today, however, more retirees are opting for a phased approach, where they gradually reduce their work hours rather than retiring outright. This shift is largely driven by a combination of financial needs, increased life expectancy, and a desire to stay mentally and socially active for longer.”
The new retirement mentality
In addition to redefining when they retire, Americans are reimagining what their golden years should look like. The Edelman study revealed that nearly 40% of respondents want their retirement to be different from that of previous generations. A substantial portion of those surveyed expressed a desire for a more active post-work life, with 42% seeking increased physical activity, 39% hoping for more adventure, and 24% planning to adopt a more nomadic lifestyle during retirement.
However, concerns over personal finances continue to loom large. While 65% of respondents in the Edelman poll said they were at least somewhat confident in their ability to fund their envisioned retirement, 35% indicated that affording the life they desire after working would be a challenge. This lack of financial security for many is becoming more acute in the face of high inflation and rising living costs.
In fact, not all Americans feel prepared for retirement. Some are entering what has been described as a “midlife retirement crisis.” Research conducted by Prudential Investments earlier in the year highlighted this challenge. Their survey of Americans aged 55, 65, and 75 found that many older workers are significantly underprepared for leaving the workforce. The median retirement savings for those aged 55, for example, was found to be just $47,950—far below the recommended target of eight times one’s annual income by that age.
The June study further indicated that many older Americans are delaying leaving the workforce due to economic pressures. Among 55-year-olds, one-third had already postponed their retirement because of inflation and escalating living expenses. Similarly, 43% of individuals aged 65 had also put off retiring for these reasons. To bridge the financial gap, nearly half (48%) of those aged 55 anticipated working part-time during their retirement years, while 25% of 65-year-olds and 13% of 75-year-olds said they would do the same.
