Retirement Realities
Retirement Realities
Highlights
Many workers 60+ expect never to fully retire—and most say money is the reason
Over 4 in 10 workers 60+ say they'll never fully stop working—and 60% say it's because they can't afford to.
The typical 60+ American has saved $100K toward a $250K goal, leaving them $150K short at the start of retirement.
Social Security is doing most of the heavy lifting in retirement
Nearly half (47%) of adults 60+ rely on Social Security as their primary income source. Among the fully retired, that rises to 71%.
Inflation, healthcare, and caregiving are reshaping retirement
Inflation is the #1 retirement worry (62%), ahead of healthcare (59%) and outliving savings (42%).
30% of still-working adults 60+ stay employed to keep healthcare coverage. Another 42% stay employed to cover caregiving costs.
Phased retirement could help employers keep older workers longer
61% of workers 60+ would stay in the workforce longer if offered a phased retirement arrangement.
Over 4 in 10 workers 60+ say they will never fully stop working—and 60% say it's because they can't afford to
Working later in life is not always a lifestyle choice. Longer life expectancy may be pushing some milestones later, but for many older adults, work in later life is driven by financial pressure.
By the numbers:
42% of still-working adults 60+ say they'll never fully stop working for pay.
60% of those say financial necessity is keeping them from retiring.
61% of still-working adults 60+ are delaying retirement past their original target date.
$100K median retirement savings vs. $250K stated goal.
63% say their savings are inadequate.
47% rely on Social Security as their primary income source.
But for many older workers, staying in the workforce also means facing age discrimination that creates barriers to their goals and progress.
22% of those 60+ have experienced ageism in their careers.
56% of those say hiring barriers are the main way it shows up.
Retirement confidence is split: nearly half of fully retired workers 60+ say their savings fall short
For the 60+ population that does make it to retirement, the reality is not always all it’s chalked up to be.
Only 49% of fully retired adults say their savings are sufficient.
42% of fully retired adults say savings fall short, and they need to change their lifestyle plans.
The large gap between the median savings of $100k and the mean savings of over $639K shows how uneven retirement preparedness is, as most retirement wealth is concentrated at the top. A small group is well-prepared, but most older adults are not. That gap is changing what retirement looks like for people without enough savings.
Those who have yet to retire are more likely to extend their work life (58%, vs 38% overall) to close the savings gap; those already retired are figuring out how to make do with what they have (42% vs 25% overall).
Women face a retirement savings crisis
Older women, who faced significant barriers to earning equal pay compared to men throughout their careers, bear a disproportionate burden of the savings gap.
Women 60+ have a median of $60,000 saved
Men 60+ have a median of $199,000 saved
That's a $139,000 gender gap in median retirement savings
Unmarried women 60+ have an even larger gap, with a median savings of only $19,500.
28% of women 60+have zero savings, a significantly larger share than the 16% of 60+ men.
“You don’t need to be a financial expert to start saving smartly. Invest your retirement savings in index funds to maximize growth. Look for companies that offer 401K matching and immediate vesting.”
The gender wage gap grows over the course of a career, and many older women find themselves at a loss when they approach retirement. Starting to save early in a career, focusing on fields with better gender pay ratios, and negotiating during the offer phase are all ways women in the workforce can now prepare themselves for a successful retirement.
The savings gap between the goal and reality will worsen without intervention
Being financially unprepared, or seeing costs rise faster than their semi-fixed income can support, is pushing many retirees back to the workforce.
Semi-retired workers have a median of $80K saved, down from the $100K that fully retired workers have. The gap is part of the reason semi-retirees haven’t fully let go.
Unretired workers have a median of just $50K saved. Running low on savings is driving these prior retirees back to work.
For younger workers, understanding the goal and how to prepare for it early can be make or break for their retirement strategies. Many young workers are facing growing challenges —carrying student debt, facing high housing costs and inflation, and a variable labor market—all things that can disrupt a fragile retirement plan.
The good news: younger workers are starting to save earlier, especially with automatic 401(k) enrollment. Given the reliance on Social Security for today’s retirees’ income and the uncertain future of the vital government program, saving more today will be critical.
Advice for Gen Z and Millennials
Start saving now, a 10-year delay creates a wealth gap that's difficult to close.
Seek employer 401(k) matching of 6%+ and negotiate for the highest match possible; contribute the maximum per paycheck.
Look for "immediate vesting" rather than a 3-5 year waiting period.
Ask if your employer matches student loan payments with retirement contributions—many now do.
“Take advantage of compound interest and start saving and investing now. Give your future self flexibility to take a career break or a lower-paying job you love.”
71% of fully retired workers rely on Social Security as their primary income source — vs. just 4.3% who cite 401(k) distributions
The concentration of retirement income in a single government program represents a systemic vulnerability across the 60+ population, especially for fully-retired workers.
Inflation is changing retirement plans
20% say inflation has directly delayed their retirement timeline.
20% have changed their planned retirement lifestyle because of it.
8% say inflation will cause them to return to work after retirement.
62% name inflation as their #1 retirement worry — above healthcare (59%) and outliving savings (42%).
Healthcare is keeping people at work
30% of still-working adults 60+ stay employed to keep healthcare coverage.
Retirement isn't financially viable for many without a coverage plan.
Caregiving is delaying retirement
42% of still-working adults 60+ stay employed specifically to cover caregiving costs or to maintain healthcare for those they care for.
36% of semi-retired workers returned to work for the same reason.
24% of the 60+ population is currently providing caregiving or financial support to a family member; the largest group is caring for adult children (12%).
Layoffs derailed retirement timelines
25% of those 60+ experienced a layoff at some point in their career.
Of those, 32% say it delayed retirement by at least a year due to lost income, savings, and benefits.
For semi-retired workers, returning to work isn't always about money
While the financial benefits of work are essential to many older workers, other considerations, such as maintaining a routine and finding purpose in their work, are keeping this population engaged in their careers.
41% of semi-retired workers returned to work to stay productive and busy.
39% work because they derive purpose and meaning from their jobs.
26% went back for social connection.
That comes as nearly 3 in 10 semi-retired workers work remotely.
Flexible work options can help older workers stay engaged in the workplace longer.
Work offers more than just financial compensation; when employers offer work that provides flexibility, purpose, and connection, they can better meet the needs of older workers while retaining experienced talent.
61% of workers 60+ would stay in the workforce longer if offered a phased arrangement
A gradual wind-down through reduced hours, consulting, or mentorship could help workers ease into retirement while helping employers avoid losing decades of institutional knowledge at once.
38% of those 60+ still-working say they would stay five or more additional years under a phased arrangement.
This would keep a key segment of the workforce engaged, softening the impact of the impending retirement cliff.
Only 39% of all 60+ say they would not stay longer, regardless of the arrangement offered.
Planning for a gradual wind-down, instead of a sudden stop, may become the new normal.
Methodology
This survey was administered to a nationally representative sample of 1,500 US residents aged 60+ who have ever worked. The survey was fielded between February 11 and March 7, 2026, by Pure Spectrum. The sample included a mix of those who are fully retired, not retired, and semi-retired/unretired.