One in Four Americans Over 50 Postponing Retirement Due to Financial Fears — What’s Causing the Delay?
According to Ellen Westbrook, a contributor at HRcosts.com, a recent survey reveals that a significant portion of Americans over the age of 50 are opting to postpone their retirement plans primarily due to economic uncertainties and financial anxieties. This trend reflects a growing apprehension about the future among pre-retirees.
Short Summary:
- 23% of surveyed adults over 50 have decided to delay their retirement, a rise from 14% the previous year.
- Key concerns include inflation, inadequate savings, and fears of economic instability.
- Financial strategies focusing on saving and alternative income sources are becoming increasingly important for future retirees.
As the realities of today’s economic climate unfold, many Americans over 50 are reevaluating their retirement timelines. According to a recent survey conducted by F&G Annuities & Life, over 23% of U.S. adults in this age group have made the decision to delay their retirement, compared to just 14% in 2024. This shift represents a growing trend of financial caution among older adults who are increasingly worried about their readiness to retire comfortably.
The primary reasons cited for this postponement include concerns about inflation, inadequate retirement savings, and general financial uncertainty. In particular, the survey highlights that nearly half (50%) of those planning to delay retirement mentioned financial volatility as a significant factor. Indeed, with the median retirement savings for 55-year-olds hovering at $50,000—far below experts’ recommendations—it’s clear why many are choosing to remain in the workforce longer.
“Of course, that helps in the short run, but that means that you have even more people who have worries once they start to get to retirement,” said David John, a senior policy adviser at AARP. He emphasizes the importance of consistent saving, no matter how modest the contributions may be.
Inflation remains a critical concern, impacting 44% of the participants. As living expenses increase, so do fears regarding financial security post-retirement. Additionally, 34% expressed unease about the potential for a recession or downturn in the stock market. With such economic factors weighing heavily on the minds of older adults, strategies for financial stability are more crucial than ever.
The Shift in Retirement Planning
Among those delaying retirement, it’s notable that a combination of concern over Social Security and financial anxieties contributes to their decision-making process. According to the 2025 Protected Retirement Income and Planning Study, 30% of consumers aged 61 to 65 are contemplating postponing retirement for these same reasons. This marks a significant moment in the financial landscape, where planning and security are paramount.
The 2025 study reinforces the survey findings from F&G, illustrating a generational worry surrounding retirement. “Many of those belonging to the largest wave of retirement age Americans are hitting the pause button,” said Jason Fichtner, Executive Director of the Alliance’s Retirement Income Institute. This uncertainty comes at a time when the first wave of Baby Boomers is reaching retirement age, creating what the Alliance has termed “Peak 65.”
Insights from Financial Experts
The anxiety surrounding retirement is also putting pressure on financial advisors. Many are modifying their strategies to better support their clients amid fluctuating market conditions. According to the same study, approximately 65% of financial advisors have adjusted their retirement planning approaches in response to ongoing economic instability.
“Just as businesses hesitate to make big moves in times of economic uncertainty, many working Americans are afraid of taking the leap into retirement,” stated Jean Chatzky, an Education Fellow with the Alliance. This perspective echoes throughout the financial advisory community where 50% report increasing client investments in annuities as a means to protect income.
The Role of Social Security
One significant factor in the retirement delay phenomenon is the timing of Social Security benefits. The full retirement age for those born in 1960 or later is set at 67, but workers can increase their monthly benefit amounts by postponing their claims until age 70, receiving as much as a 24% boost. This strategy may need to be re-evaluated as financial stability becomes a growing concern for older Americans.
Analyzing Financial Readiness
Financial preparedness is a considerable issue for the aging population. Approximately 29% of current retirees are considering “unretiring,” and over half (54%) of Gen Xers are worried about outliving their savings. These statistics emphasize the need for effective financial planning, with nearly 47% of respondents over 50 navigating their circumstances without professional financial advice.
This gap in financial guidance is alarming, particularly when considering that many Americans do not have detailed retirement plans. Only about 34% of consumers aged 45 to 75 have such a plan in place. The pressure of preparation weighs heavily, highlighting a pressing need for educational resources aimed at facilitating informed decisions as consumers approach retirement.
The Emotional Toll of Financial Uncertainty
Emotional well-being plays a critical role in retirement readiness, often intertwined with finances. Many older adults report that their sense of purpose and fulfillment is a significant factor in their retirement plans. Worker sentiments show an increasing urgency toward finding not only financial security but also social connections in post-retirement life.
“Save and continue to save, because any amount of retirement savings is going to be better than no retirement savings,” says David John, emphasizing the importance of prioritizing contributions even in uncertain times.
The Path Forward
The prevailing financial concerns highlighted by F&G’s survey and the 2025 PRIP study serve as a sobering reminder to the importance of proactive financial planning, particularly in a world where inflation and economic uncertainty are prevalent. For many individuals over 50, the decision to delay retirement is not merely about financial readiness but also reflects a broader emotional landscape that includes fears of inadequacy and unpredictability.
It’s clear that as retirement nears, continually adapting strategies and enhancing knowledge about financial tools—such as annuities—will be key in cultivating better outcomes for retirees. As Baby Boomers and Gen X approach pivotal moments in their financial lives, the critical questions about their future loom larger than ever.
In light of these trends, it becomes increasingly essential for individuals nearing retirement to engage with financial professionals and invest time in their financial literacy, ensuring that they can transition into retirement with confidence and security. Protecting retirement income through solutions like annuities may hold the key to navigating these challenging times.
About the Author
Ellen Westbrook is a Stanford University graduate with a bachelor’s degree in human resources and psychology. She’s the owner of a successful HR and payroll outsourcing firm in Colorado and a contributing writer for HR Costs. With 17 years of experience, Ellen helps businesses reduce risk, manage HR more efficiently, and grow with confidence.
