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By Aliss Higham
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Nearly a third of Americans believe that they will never fully retire, according to a new survey.
The 2024 Everyday Wealth in America research paper, conducted for Edelman Financial Engines by Greenwald Research, has found that 1 in 3 respondents believe they will never be able to stop working completely. Six percent of the 3,008 respondents said they think they will never stop working at all.
The research paper is the latest of many that point to retirement becoming more and more of a distant dream for America's workers. A 2022 survey by Gallup, between 2002 and 2007, found that 41 percent of U.S. adults aged 60 to 64 and 76 percent of those between 65 and 69 were retired. However, between 2016 and 2022, 32 percent of adults between 60 and 64, and 70 percent of adults aged 65 to 69, had given up work.
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A recent Pew Research Center report found that about 1 in 5 Americans aged 65 and older were still employed in 2023—nearly twice as many as 35 years ago. The average expected retirement age among non-retirees is now 66, one year ahead of the full retirement age for Social Security benefits, versus 60 in 1995.
The WTW 2024 Global Benefits Attitudes Survey, published this summer, found that older generations are increasingly considering or are actively phasing into retirement instead of just simply stopping work. Of those already transitioning into post-work life, 61 percent said they have reduced their work hours, while 41 percent replied they have opted for fewer job responsibilities.
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"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," Jim Davis, senior wealth manager at Texas-based Aspen Wealth Management, told Newsweek. "Today, however, more retirees are opting for a phased approach, where they gradually reduce their work hours rather than retiring outright.
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"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," Davis added.
Americans Want To Retire Differently
The way Americans want to retire is changing as well. Edelman found that nearly 4 in 10 want their post-working life to look different to previous generations, including being more active (42 percent), more adventurous (39 percent), and more nomadic (24 percent).
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The Edelman poll also pointed to concerns over personal finances, with it being no secret that high inflation has pushed up the cost of living in recent years. While 65 percent said they are at least somewhat confident they will be able to afford the type of retirement they desire, 35 percent said it could be challenging.
Affordability Crisis
While not all Americans are worried about the prospect of affording retirement, some are "critically underprepared" for any type of retirement, never mind the ideal they desire.
Research released earlier this year by Prudential Investments found that 55-year-old Americans are entering a "midlife retirement crisis" because many do not have enough funds to see them comfortably through. The survey of 905 Americans aged 55, 65, and 75 found the median average retirement savings of 55-year-olds to be $47,950, well short of the recommended goal of having eight times annual income saved by that age.
The June poll also found that one-third of 55-year-olds and 43 percent of 65-year-olds have already postponed retirement due to inflation and the increasing cost of living. To bridge the financial gap, 48 percent of 55-year-olds are planning to work part-time during retirement, compared to 25 percent of those aged 65 and 13 percent of 75-year-olds.
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