With ongoing inflation, high interest rates and volatility continuing to impact the market, it isn’t hard to see why Americans are increasingly concerned about outliving their nest egg. As a result, many are rethinking their retirement.
According to a recent survey from F&G, half (50%) of pre-retired and retired Americans are considering delaying or coming out of retirement. Financial factors are certainly a reason, with 52% of pre-retirees worried they won’t have enough money in retirement, and 42% of retirees worried about inflation. But money doesn’t tell the whole story, as the report also revealed that many Americans are returning to work for non-financial reasons — something that I can relate to as well.
Retirement is more than financial independence
Conventional wisdom may say someone would never return to work after retiring unless they were financially forced to, but the reality is many Americans are considering going back to work simply because it makes them feel good. In fact, 50% of retirees are considering “unretiring” because they enjoy the intellectual challenge/stimulation from working, and 36% feel a lack of purpose in retirement.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
These responses resonated with me. I was briefly retired, then made the decision to return to the workforce for non-monetary reasons, which is how I eventually took on a new challenge at F&G. The report shows more Americans are having the same feelings I had. Earlier in my career, when I thought of retirement, I saw it as synonymous with achieving financial freedom. That was more important to me than the general idea of “stopping work.” I've always enjoyed working and being a part of a team, but with retirement I was excited about having more control over my life and spending more of my time on the things I wanted to pursue.
When I initially retired, I loved having freedom over my day, but this feeling was short-lived. After a while, I noticed myself missing the camaraderie of the workplace. Growing up, I played a lot of team sports, and I didn't appreciate how work had become my “adult team sport” later in life. Ultimately, that feeling of missing something persisted until I made the decision to “unretire” and get back to working again.
The new idea of retirement and how to get there
Just as hybrid work has emerged over the last few years, we’re seeing “hybrid retirement” become more common. Many folks are realizing that the old vision of retirement as working one day, then being completely retired the next is no longer an attractive prospect. Generations are also now wired differently, and people are approaching retirement differently than their parents or grandparents. They want to learn, achieve goals and spend time with other people who share similar passions. So how can they ensure that happens?
Looking back, the best retirement planning advice I received was 1) plan for it in advance, envisioning what your daily life will look like, and 2) don’t overcommit yourself in the first year of retirement.
It’s important to financially plan for retirement, but people approaching retirement also need to plan for their life goals. It’s critical to carefully think through what you'd like retirement to look like. Do you want to travel? Spend more time with family, such as your grandkids? Volunteer? For people in a relationship, especially, it’s easy to make assumptions that can lead to disappointment, so aligning on a common vision is a critical first step. Once someone can identify what will inspire and bring them purpose in retirement, they can make a plan to ensure they are working to achieve it.
Experts can help
One of the best ways people can ensure they are well positioned to achieve the retirement they want, both financially and non-financially, is to speak with a financial adviser or similar professional.
Surprisingly, the survey found that half (50%) of pre-retirees and retirees don’t currently work with a financial adviser. This is a huge missed opportunity for people to get input about their retirement plan and goals. Speaking with an adviser can alleviate concerns around inflation and outliving savings and ensure individuals have the right products to meet their needs. For example, retirees and pre-retirees may want to consider options such as annuities, which can provide peace of mind and guaranteed income for life regardless of what happens in financial markets. For financial advisers, it’s also a chance to look beyond just the portfolio and lean into the role of “life coach” to help clients plan for overall happiness as well.
Ultimately, Americans’ retirement views are changing and moving beyond just financial concerns. Everyone’s life situation, goals and “dream retirement” are different, so there’s no one formula based on age or when or how to retire. For example, for Baby Boomers considering pushing back their retirement, the top reason they are doing so is because they enjoy the intellectual challenge/stimulation from working (51%), whereas for Gen Xers the top reason is tied between being worried about inflation (45%) and wanting more financial options and a larger safety net (45%).
Spending time today reviewing your concerns, understanding your goals and building a plan to get there can pay off for years to come. Once people have that added direction, they won’t have to worry about feeling like they are missing something in retirement. Instead, they’ll enter that next chapter more financially secure and personally fulfilled.
Note: The F&G survey was conducted online by Directions Research and fielded from June 7 to June 16, 2023, among a nationally representative sample of 2,015 U.S. adults 18 years of age and older. Respondents were targeted to Americans Aged 50+, who are financial decision-makers and have $100K+ in financial products/savings.
Related Content
- Leaving Retirement? Three Things to Consider Before You Unretire
- If You Work in Retirement, Can You Save in a Retirement Plan?
- Making Your Retirement Savings Last: Three Key Questions to Ask
- Retirement Is a Journey: Do You Have the Map?
- How to Plan for Your Three Acts of Retirement
-
If You'd Put $1,000 Into Procter & Gamble Stock 20 Years Ago, Here's What You'd Have TodayProcter & Gamble stock is a dependable dividend grower, but a disappointing long-term holding.
-
Could This Little Known Data Shift Hurt Your 2026 Social Security COLA?The BLS has changed how it measures the inflationary data that determines whether Social Security benefits will get a Cost-of-Living Adjustment (COLA). Will it hurt your benefits?
-
Financial Pros Provide a Beginner's Guide to Building Wealth in 10 YearsBuilding wealth over 10 years requires understanding your current financial situation, budgeting effectively, eliminating high-interest debt and increasing both your income and financial literacy.
-
Five Mistakes to Avoid in Your First Year of RetirementRetirement brings the freedom to choose how to spend your money and time. But choices made in the initial rush of excitement could create problems in future.
-
I'm an Investing Expert: This Is How You Can Invest Like Warren BuffettBuffett just invested $15 billion in oil and gas, and you can leverage the same strategy in your IRA to potentially generate 8% to 12% quarterly cash flow while taking advantage of tax benefits that are unavailable in any other investment class.
-
Integrity, Generosity and Wealth: A Faith-Based Approach to BusinessEntrepreneurs who align their business and financial decisions with the biblical principles of integrity, generosity and helping others can realize impactful and fulfilling success.
-
How Much Income Can You Get From an Annuity? An Annuities Expert Gets SpecificHere's a detailed look at income annuities and the factors that determine your payout now and in the future.
-
Your Paycheck Stops in Retirement, But Your Life Doesn't: An Expert Guide to Planning for a Confident FutureSocial Security will replace only about 40% of your salary, on average. A solid financial plan will help you plug the gap so you can rest easy in retirement.
-
Are You Jeopardizing Your Future to Help Your Adult Kids? An Expert Guide for How to Not Do ThatIf your adult child needs financial help, of course you want to provide it, but crafting a plan that also protects your financial and emotional well-being is vital.
-
I'm a Financial Planner: Here Are Some Long-Term Care Insurance Tips for Every AgeStrategies include adding riders to life insurance for younger individuals and considering hybrid or traditional long-term care policies for those in their mid-50s and 60s.
