Americans Expect to Delay Retirement by 4 Years: The Impact of Rising Living Costs on Retirement Plans

Economy Pressures Reshape Retirement Plans

Economy concerns lead Americans to anticipate working about four years longer than initially desired. With increasing living costs and health care expenses, nearly half of all surveyed workers attribute their postponed retirement to these financial pressures.

Survey Findings

• Only 1 in 5 workers wish to stay in the labor force longer for job satisfaction.
• Majority cite living costs as the primary reason for delaying retirement.
• The survey involved 2,063 full-time U.S. workers from midsize and large companies.

Financial Pressures on Retirement

Short-term financial needs are overshadowing long-term retirement goals. Workers’ timelines for retirement are shifting, which raises the likelihood of remaining employed into later years.

• One-third of respondents reported taking loans or hardship withdrawals from their 401(k) plans.
• A record number of Americans accessed their 401(k) plans last year to navigate financial emergencies.

The early withdrawals often result in penalties, complicating the decision to delay retirement further.