Half of Americans over 50 pushing back on retirement

DES MOINES, Iowa, — Just over half (51%) of pre-retirees over 50 and retired Americans are considering delaying or coming out of retirement, according to a new survey from F&G, a  provider of insurance solutions serving retail annuity and life customers and institutional clients. F&G’s second annual Retirement Reconsidered survey explored how the current market environment is impacting decisions leading up to and into retirement.

 Inflation continues to drive retirement decisions

While the S&P 500 is up more than 20% over the past year and inflation has somewhat moderated since 2023, pre-retirees over 50 are still feeling anxious. In fact, 68% of pre-retirees are considering pushing back their retirement, up from 64% last year.

Generation X appears especially concerned as 71% of those respondents are considering or have pushed back their planned retirement date, up from 65% last year. As pre-retirees push back their target dates, many people who’ve already taken the plunge are reconsidering their decision.

Half (49%) of pre-retirees over 50 that are either considering or have pushed their retirement back are doing so because of inflation worries. Meanwhile, 44% of retirees and those who have considered rejoining the workforce cite inflation as a reason.

“This remains a challenging macroeconomic environment to navigate for those close to or in retirement,” said Chris Blunt, CEO of F&G. “As our survey shows, Americans are still reconsidering what retirement means to them, and that may look different from previous generations. We believe 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.”

But it's not just about the economy

Beyond financial risks, the most cited reason for retirees and those who have considered rejoining the workforce was because they enjoy the intellectual challenge and stimulation of working.

A third of people (33%) who are either considering or have pushed back their retirement say they are doing so because they love what they do for work. The same percentage enjoy the intellectual challenge and stimulation from working. For retirees and those considering coming out of retirement, 45% say they enjoy the challenge from working, while just over a quarter (27%) say they loved what they did for work.

X marks the spot for reconsidering retirement

Gen Xers are especially anxious about retirement. When asked why members of this generation have considered pushing back their planned retirement date, they cited worries about not having enough money for retirement (49%), inflation (47%), wanting more financial options and a larger safety net (42%) and worries about a recession or stock market downturn (31%). Interestingly, half of Gen X respondents said they were more likely to return to a different industry than the one they previously worked in if they came out of retirement.

“As Gen Xers near retirement, our study shows that their worries are heightened,” said John Currier, President of F&G. “Having the right advice and financial tools can help alleviate these concerns, including engaging with a financial professional and considering products like fixed indexed annuities (FIAs) and registered index-linked annuities (RILAs) that can provide a mix of upside potential and downside protection.”

Unretiring – Who are you going to call?

It’s clear that many individuals over 50 are rethinking their retirement, and many are seeking advice before they make changes. While a financial advisor is important in providing a roadmap, the survey found that people are often looking to friends or family for counsel instead.

Of those contemplating retirement and those who have unretired, 71% reported seeking advice prior to making a decision, with 57% consulting a spouse. Surprisingly, only 16% discussed the decision with a financial advisor.

For more information on F&G’s survey, please visit fglife.com/research.

 Survey Methodology

This survey was conducted online by Directions Research, independently recognized as one of the nation's leading business decision insight firms. The survey was fielded from May 1 to May 16, 2024, among a nationally representative sample of 2,048 U.S. adults. Respondents were targeted to Americans ages 50+, who are financial decision-makers, that have $100K+ in financial products/savings.