The U.S. retirement landscape is changing, with a considerable portion of Americans either struggling with saving for later in life or planning to never fully retire.
A study by Transamerica Center for Retirement Studies has found that more than half of current workers—52 percent—plan to work at least part time in retirement. Almost seven in 10 workers—69 percent—said they could work until retirement age and still not save enough to meet their needs.
"Today's workers are struggling to save for retirement. They are traversing disruptions in the economy, a tenuous employment market, and the high cost of everyday living—and many are still regaining their financial footing from the COVID-19 pandemic and its aftermath," the study said.
Findings
Despite the challenges, retirement savings naturally remain a priority for many. More than eight in 10 workers (83 percent) are actively saving through an employer-sponsored retirement plan or other means, with a median starting age of 26. But only 28 percent of workers strongly agree that they are on track to build large enough retirement nest egg.
What's more, financial strain has led a significant number to withdraw from their retirement funds. A worrying 37 percent have tapped into their accounts, with 31 percent taking loans and 21 percent making early or hardship withdrawals.
The report estimated median total savings in household retirement accounts is $82,000. This is well below the reported minimum of $700,000 needed in every U.S. state, according to a GOBankingRates study published earlier this year.
To compensate for potential shortfalls later in life, many current employees plan to work longer. More than a third (36 percent) expect to retire at age 70 or beyond, or do not plan to retire at all.
However, it's not all glum news, at least for some. Almost seven in 10 workers (68 percent) reported feeling confident that they will be able to fully retire—whenever that may be—with a comfortable lifestyle.
The Changing Retirement Landscape
Recent decades have seen a significant shift in how Americans retire. A 2023 Pew Research Center report found that around one in five Americans aged 65 and older were still employed in 2023—nearly twice as many as 35 years ago. Data from the Bureau of Labor Statistics shows that 10 years ago, in February 2015, some 8.2 million people over the age of 65 were employed in some capacity. This increased by 35 percent to 11.1 million in February 2025.
Financial and retirement experts who spoke to Newsweek were not surprised by the Transamerica findings, putting the blame largely on the ever-rising cost of living.
"The biggest challenge facing today's pre-retirees is financial uncertainty—rising health care costs, inflation and longer life expectancies have made it harder than ever to retire comfortably," Brian Harrison, financial planner and president of SAVVI Financial, told Newsweek. "Many individuals haven't saved enough, and even those who have are struggling to manage their retirement funds efficiently."
The most alarming element was not how long or how many more Americans are delaying retirement, but the lack of savings they had to see them through their post-working years.
"One key issue is that most people don't fully understand how to optimize their benefits and financial choices—for example, how health care decisions today impact long-term retirement readiness," Harrison said. "Without the right tools and guidance, many pre-retirees are forced to delay leaving the workforce simply to maintain financial stability.
"After they've earned a paycheck, it's a challenge for them to turn what they've saved into a retirement paycheck that will last as long as they need it as well."
