Many Americans Older Than 50 Consider Delaying Retirement or ‘Unretiring’

Largely due to concerns about inflation, more than half of pre-retirees older than age 50 and of retired Americans are considering delaying or coming out of retirement, according to a new survey from F&G Annuities & Life Inc.  

While inflation has somewhat cooled since last year, F&G found that 68% of pre-retirees are considering pushing back their retirement, up from 64% last year. In addition, 33% of retirees agreed they have considered returning to the workforce or “unretiring.” 

Generation X is especially concerned, as 71% said they are considering or have pushed back their planned retirement date, up from 65% last year. F&G concluded that as pre-retirees push back their target dates, many people who have already taken the plunge and retired are reconsidering their own decisions. 

Of pre-retirees older than 50 either considering or planning a delay to their retirement, 49% said they are doing so because of worries about inflation. Similarly, 44% of retirees and those who have considered rejoining the workforce cite inflation as a reason.  

The Alliance for Lifetime Income also found in a recent study that women Baby Boomers nearing age 65 are facing urgent financial risks. More than half of women surveyed who are nearing retirement age have less than $100,000 in assets, and among single women in this demographic, 67% who have less than $100,000 in assets. 

Women and single retirees are often more likely than men or married couples to cite income as the primary motivator to keep working in retirement years. For example, according to T. Rowe Price’s Retirement Saving & Spending Study from earlier this year, 61% of single retirees working or looking for work in retirement said they are doing so because they need the money, as opposed to 33% who are married. 

Beyond financial concerns, many respondents considering or planning a delay to their retirement dates said they are doing so because they enjoy the intellectual challenge and stimulation of work. For example, 45% of retirees considering coming out of retirement said they enjoy the challenges from working, according to the F&G survey. 

When considering unretiring, 57% of respondents said they would consult a spouse prior to making a final decision, as opposed to only 16% who said they would consult a financial adviser.  

Of those in the F&G survey who reported not working with a financial adviser, 39% said the fees are too expensive, and another 34% claimed they “know what they’re doing.” Additionally, 28% said they are not working with an adviser because they are only invested in “basic” types of investments for which they do not need financial advice. 

Whether Americans unretire or push back their retirement dates, research shows that delaying retirement account withdrawals and delaying claiming Social Security can have a positive impact on their financial positions, as waiting until age 70 to collect Social Security allows retirees to receive the highest possible monthly benefits. Even a few additional years of work and earning income can lower the probability of outliving one’s assets, according to T. Rowe Price.  

John Currier, president of F&G, said in a statement that having the right advice and financial tools can help alleviate concerns about delaying retirement or unretiring. Currier said plan sponsors can consider recommending to their participants products like fixed-indexed annuities and registered index-linked annuities that can provide a mix of upside potential and downside protection. 

F&G fielded its survey from May 1 through May 16, including responses from 2,048 U.S. adults.