More pre-retirees rethink retirement as income-planning concerns grow

More Americans approaching retirement are reconsidering when they will leave the workforce, with many expecting to work longer or gradually reduce their hours rather than stop working altogether.

Retirement plans continue to change

In its fourth annual Retirement Reconsidered survey, F&G Annuities & Life found that 75% of pre-retirees had considered or were delaying their planned retirement date, up from 70% in 2025.

More than half (51%) expected to retire later than originally planned, compared with 45% in 2025. Separately, 51% said they planned to semi-retire, which can involve reducing work hours, taking part-time jobs or moving into consulting or freelance work.

The survey found that 60% of pre-retirees expected a gradual transition into retirement rather than an immediate end to working. Only 21% associated retirement with stopping work completely.

Ron Barrett, F&G's chief distribution officer, said the findings reflect changing expectations about what retirement can look like. Fifty-three percent of all respondents, including retirees, agreed that the journey to retirement is becoming more flexible.

"There is no one-size-fits-all retirement timeline," Barrett said. Financial planning needs to reflect individual circumstances, goals and the lifestyle people envision.

Financial concerns remain a significant factor. Among pre-retirees who had considered or were delaying retirement, 52% worried about having enough money. Inflation was a concern for 44%, while 42% cited having a sufficient financial safety net.

Working longer is not always a financial decision. About one-third of pre-retirees (34%) said they continued working because they love what they do.

F&G's survey was conducted by Censuswide from Aug. 4-31, 2026. It included 2,001 U.S. adults ages 50 and older who made or shared household financial decisions and had at least $100,000 in investable assets.

Planning for retirement income

A separate LIMRA study found that 88% of pre-retirees had thought about how they would generate income after leaving work. However, half either had no written retirement plan or had not updated one recently.

The 2026 Retirement Income Readiness Report also found that 74% wanted to learn more about protected lifetime income options, including Social Security, pensions and annuities. Only 25% believed those sources would cover their essential expenses in retirement.

Bryan Hodgens, LIMRA's senior vice president and head of research, said retirement planning has traditionally focused more on accumulating savings than preparing people to use those assets after leaving the workforce.

"We've done a good job, or a decent job, of encouraging people to save during the accumulation phase of their life," Hodgens said. "We haven't done a good job with people on the decumulation side."

With traditional pensions becoming less common, more people approaching retirement must rely on Social Security and personal savings, Hodgens said. That can make it harder to determine how much income those sources will provide and how long savings will last.

The LIMRA findings are based on an April 2026 survey of 486 pre-retirees and 804 retirees ages 45 and older. Pre-retirees were defined as workers aged 45 and older who planned to retire within 10 years.

Interest in predictable income

F&G's survey found that 75% of respondents preferred greater financial certainty and predictable income, even if that limited potential investment growth. Another 67% said they felt the need to invest or increase their investments in products providing guaranteed future income.

Barrett said F&G is seeing particular interest in fixed indexed annuities and registered index-linked annuities, which offer different combinations of growth potential and downside protection.

LIMRA's research also found interest in protected lifetime income. Perceived product costs and reluctance to give up control of assets were among the obstacles to annuity consideration, according to the report.

Hodgens said those concerns can arise with immediate income annuities, which exchange a lump sum for guaranteed payments. Some consumers may be reluctant to give up access to those assets in exchange for income for life.

F&G also found that only 20% of respondents gave themselves an A for financial readiness in retirement, down from 26% in 2025. Nearly half (46%) said they were not currently working with a financial professional.

Barrett said financial professionals can help clients plan for both financial security and the retirement lifestyle they want, whether that means fully retiring, semi-retiring or gradually leaving the workforce.

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Noah Lopez is editorial assistant for InsuranceNewsNet. Contact him at noah.lopez@innfeedback.com.