Most American workers anticipate postponing retirement by roughly four years beyond their preferred timeline, driven primarily by increases in living costs and health care expenses, according to new research from Economist Enterprise conducted with support from the investment firm Nuveen.
The study surveyed 2,063 full-time workers employed at midsize and large U.S. companies. Nearly half of respondents identified rising living costs as the chief reason for expecting to delay retirement. Only 20% said they would work longer because they enjoy their jobs.
Financial Pressures Impacting Retirement Plans
The research highlights how short-term financial needs are causing workers to sacrifice long-term retirement goals. Approximately one-third of respondents reported having taken loans or hardship withdrawals from their 401(k) plans. This aligns with broader trends, with a record number of Americans accessing retirement savings to manage financial emergencies in recent years, according to Vanguard.
Matt Terry, project manager at Economist Enterprise, noted that these early withdrawals may contribute to the trend of delayed retirement, as workers feel compelled to remain employed longer to rebuild savings and cover current expenses.
Generational Differences in Retirement Expectations
Among different age groups, Generation Z workers—born between 1997 and 2012—are the most pessimistic about retirement prospects. They expect to retire an average of 5.2 years later than they would like. Generation X workers (ages 46 to 61) anticipate delaying retirement by 3.9 years.
Despite being at the start of their careers, many Gen Z individuals already express significant concerns about their financial futures, reflecting early awareness of the pressures shaping retirement planning.
Retirement Realities and Financial Readiness
While many Americans ideally plan to retire around age 65, research from the Transamerica Center for Retirement Studies indicates the median retirement age is 62, often due to factors beyond their control such as health issues or job loss.
Financial readiness for retirement remains a significant challenge. Economist Enterprise, citing Prudential Financial data, reported that median savings for 55-year-olds are approximately $50,000, an amount widely considered insufficient for retirement needs.
The “Great Stay” and Job Market Stability
The study also sheds light on the “great stay” phenomenon, with many workers choosing job security over seeking potentially better-paying or more beneficial employment opportunities amid economic uncertainty. About 60% of respondents prioritized long-term job security, while nearly one-third stopped job searching within the past five years due to concerns over sacrificing stability.
This trend corresponds with the recent decline in the voluntary job quitting rate—the “quits rate”—which dropped to 1.9% in February 2026, its lowest level in over five years, indicating reduced workforce mobility.
Why it matters
The study’s findings signal widespread financial insecurity affecting retirement timelines, with rising living costs and insufficient savings likely to increase the number of older Americans working past traditional retirement ages. The tendency to tap retirement funds early may further jeopardize long-term financial security. Additionally, the reduced job market mobility suggests workers increasingly prioritize stability amid economic pressures, potentially impacting labor market dynamics and wage growth.
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