A significant number of older Americans are reconsidering their retirement plans. Over half (51%) of pre-retirees and retired individuals are either delaying their retirement or considering re-entering the workforce due to economic uncertainties, says a recent survey by F&G Annuities & Life Inc.
Economic Pressures Affecting Retirement Decisions
Despite a 20% rise in the S&P 500 over the past year and a slight easing of inflation since 2023, anxiety among pre-retirees remains high. The survey found that 68% of those aged 50 and above are contemplating postponing their retirement, an increase from 64% the previous year. This trend is particularly pronounced among Generation X, with 71% of respondents in this group reconsidering or delaying their retirement, up from 65% last year.
Inflation continues to be a major concern. Nearly half (49%) of pre-retirees considering delaying retirement cite inflation as a primary reason. Similarly, 44% of retirees contemplating a return to work also attribute their decision to inflation worries.
Chris Blunt, CEO of F&G, emphasized the importance of proactive financial planning to navigate these challenges. “Our survey shows that Americans are still reconsidering what retirement means to them, and that may look different from previous generations,” he said. “Taking a proactive approach in financial planning can help mitigate some of the economic risks, allowing people to focus on their own personalized roadmap of how and when to retire.”
More Than Just Money: The Allure of Work
The survey also highlighted non-economic reasons for delaying retirement. A third of respondents who are considering or have delayed retirement said they enjoy their work too much to stop. The same percentage said they find intellectual stimulation and challenge in their jobs.
For those already retired but considering re-entering the workforce, 45% enjoy the challenge of working, while 27% loved what they did for work previously.
Generation X: Facing Retirement Anxiety
Generation X stands out as particularly anxious about retirement. Concerns about not having enough money (49%), inflation (47%), and the desire for more financial options (42%) were among the top reasons cited for delaying retirement. Additionally, 31% of Gen Xers worry about a potential recession or stock market downturn. Interestingly, half of the respondents from this generation indicated they would likely seek employment in a different industry if they returned to work.
Seeking Guidance: Friends and Family Over Advisors
The survey also revealed that many individuals over 50 are seeking advice before making retirement decisions, but not necessarily from financial advisors. Among those contemplating retirement or unretiring, 71% sought advice beforehand, with 57% consulting their spouse. Surprisingly, only 16% discussed their decision with a financial advisor.
Survey Methodology
The survey was conducted online by Directions Research from May 1 to May 16, 2024, among a nationally representative sample of 2,048 U.S. adults aged 50 and above, who are financial decision-makers with at least $100,000 in financial products or savings.
