Do You Believe You Can't Retire? You Need to Read This
Americans often delay or redefine retirement not because they enjoy working more, but because they have a lack of clarity and confidence in their financial plan. Here's how you can fix that.
I'm convinced that most people love the idea of retirement but hate the uncertainty that comes with it.
We often hear that Americans are redefining retirement. They want to work longer because they enjoy it, or step out of the workforce temporarily before jumping back in.
There's some truth to that. Work has changed. People are living longer, and many want to stay engaged. A late-2025 New York Life Wealth Watch survey found that 35% of U.S. adults have either delayed or plan to delay retirement.
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But look a little closer, and a different story starts to emerge.
As with most things, it comes down to money. More than half of those planning to work longer say they don't have enough saved (51%), and nearly as many worry about inflation (46%).
That helps explain why a 2026 MetLife study found that about 51% of retirees fear running out of money. Even more concerning, 58% of pre-retirees feel the same way — a sharp increase in the past decade.
Nearly half of pre-retirees expect to cut spending in retirement because of that fear, and 44% of retirees say they already have.
None of this is surprising. What stands out is how many households haven't tested whether their plan actually works.
Retirement may feel like a lifestyle decision, but it starts as a financial one. When people say they're not ready, what they often mean is: "I don't know if this will last."
That uncertainty is what keeps many Americans working longer than they'd like.
Risks you can't control fuel the fear
Several risks amplify this uncertainty.
Sequence of returns risk is one of the least understood, yet one of the most damaging. A market decline early in retirement, combined with withdrawals, can significantly impact how long a portfolio lasts.
A retiree with $1 million withdrawing $50,000 annually could have very different outcomes depending on whether a 15% to 20% drop happens in the first few years or much later.
This isn't a rare scenario. Bear markets have historically appeared every six to seven years.
That's why stress-testing matters. In working alongside experienced fee-only fiduciary advisers, I've seen how modeling early retirement downturns, adjusting withdrawal strategies and setting aside liquidity for those first few years can turn vague anxiety into something measurable and manageable.
Longevity risk adds another layer. A 65-year-old couple has about a 50% chance that one partner will live past age 90. Stretching retirement from 30 to 35 years puts more pressure on savings than many people expect.
Then there's inflation and health care costs. Even a modest 2.5% annual inflation rate cuts purchasing power roughly in half over 28 years.
As Brett Spencer, CFP® and fee-only adviser in my Wealthramp network, points out, inflation is rarely dramatic. "It doesn't shock you in a single year," he says. "It just slowly changes what your money can buy over time."
That slow erosion is what makes it so dangerous — especially when you add in health care costs, which often rise faster than inflation. More than 80% of near-retirees now say health care is their top financial concern.
Taken together, these risks make retirement feel less like a transition and more like exposure. It helps explain the rise in unretirement.
About 7% of retirees have returned to work recently, and nearly half say it's due to financial need, not just a desire to stay busy.
The core problem: Lack of financial visibility
Many advisers tell me the issue isn't always insufficient assets; it's insufficient clarity.
People approaching retirement often don't fully understand how much they can safely spend, how flexible their plan is in a downturn or how long their savings are likely to last. Without that visibility, every market headline feels like a threat.
Clarity starts with building a complete financial picture. What do you own? What income can you count on? What will you realistically spend?
That means accounting for all assets and income sources, incorporating Social Security estimates and separating essential expenses from discretionary ones — while identifying what you could adjust if needed.
From there, you can estimate a sustainable withdrawal rate — often in the 3% to 4% range, depending on flexibility — and test how it holds up under different scenarios.
Some practical safeguards can make a meaningful difference, too. For instance:
- Holding one to two years of expenses in cash can reduce sequence risk
- Lowering debt reduces fixed costs
- Building flexibility into your spending plan can make your portfolio more resilient
- Tools such as health savings accounts (HSAs) can help cover future health care costs
When people go through this planning process, one of two things usually happens: They realize they're in better shape than they thought, or they identify a few adjustments such as delaying retirement slightly, trimming spending or rebalancing investments.
Either way, uncertainty is replaced with informed decisions.
Plan first, then purpose
Only after that financial foundation is clear does the lifestyle side of retirement come into focus.
Some people worry about boredom or losing a sense of identity. Some retirees return to work for that reason. But more often, those concerns fade once people feel confident their plan works.
When you understand your numbers, you can make choices about travel, family, part-time work or how you spend your time. That way, it's based on what you want, not what you fear.
Financial security doesn't completely remove uncertainty, but it gives you something just as important: The confidence to make decisions without fear.
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