MW When will you retire? Maybe never.
By Jessica Hall
Some want to work to keep busy. Others can't afford to stop.
Necessity and preference play a role in why people aim to work longer, Fidelity found.
The ability to retire when you want is a luxury Americans aspire to - but might not be able to afford.
Nearly 1 in 3 U.S. adults surveyed said they aren't sure when they'll retire, or if they'll even retire at all, according to a new study by Fidelity Investments.
For baby boomers, the primary reason to keep working is a desire to stay active and engaged in life, they said. For all other generations, uncertainty about retirement is simply because they don't think they will be able to afford to stop working, the Fidelity study found.
"Retirement used to be that you retire at a certain date or age. But as we're living longer and being more productive longer, retirement is more phased in - a third act of their working lives," said Rita Assaf, vice president of retirement offerings at Fidelity.
The study comes as more than 11,000 Americans are turning 65 every day through 2027, while the oldest baby boomers are turning 80 this year. Though the Fidelity study found that 72% of those surveyed said they're expecting to retire on their own terms - up 5 percentage points from last year - in reality, a majority of people retire before they intend to.
A total of 56% of retirees reported retiring earlier than planned, often for reasons beyond their control such a layoff, health issues or caregiving responsibilities, according to a 2022 report from Goldman Sachs Asset Management. The average retirement age in the U.S. was 61, according to a 2022 Gallup survey - but the target retirement age among people who have not yet retired is 66, the Gallup survey said.
Everyday financial realities have been front and center for many Americans as they grapple with the rising cost of living. Saving for retirement is a long-term process, but short-term concerns are weighing on people now, Fidelity found. The top stressors include dealing with inflation (36%), paying monthly bills (35%) and paying for an emergency expense (27%), according to Fidelity.
Despite these challenges, Americans are still contributing about $9,000 on average annually to their 401(k), and 88% are getting an employer contribution to their account, Fidelity said.
About half (51%) of respondents said the rising cost of living has been a competing priority to saving for retirement, while 28% cited paying off personal debt as another pain point, Fidelity found. Healthcare costs loom large, too, as 81% said their retirement-related healthcare costs will be high.
A 65-year-old retiring in 2025 could expect to spend an average of $172,500 on healthcare expenses throughout their retirement, according to Fidelity's Retiree Health Care Cost Estimate from July 2025.
Perhaps as a result, among the 6% who said they never plan to retire, more than half (52%) said it's because they won't be able to afford to fully stop working, per Fidelity. While some survey respondents cited affordability concerns, many who will continue to work pointed to staying active and engaged (34%), wanting to keep working (25%) and a desire to continue building wealth (19%) - evidence that both necessity and preference are playing a role, Fidelity said.
Those in Generation X who are in their preretirement years have mounting worries, as they are the first generation to fully fund retirement from their own savings rather than relying on the pensions of the past, Assaf said. They also are the so-called sandwich generation - caring for children and saving for their kids' college, while also taking care of aging parents.
Two-thirds of Gen X-ers are concerned their retirement savings won't last forever, and nearly one-half said they may need to adjust their current lifestyle in retirement, Fidelity found. Gen X-ers are those born between 1965 and 1980.
Among all respondents, 61% said they intend to transition into retirement, with the top options being gig work and side hustles (35%), starting a small business (29%), consulting part time (26%) or switching industries altogether (20%).
The shift in mindset from a set retirement age to an extended retirement phase - embracing the idea that there are options to phasing out of working life - is gaining traction, particularly among younger generations, Fidelity said. Among Generation Z, about 80% plan to gradually phase different kinds of work into retirement, as do about 60% of millennials. Generation Z are those born between 1997 and 2012, and millennials are those born between 1981 and 1996.
-Jessica Hall
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(END) Dow Jones Newswires
March 19, 2026 10:35 ET (14:35 GMT)
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