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Economic worries are keeping people working longer

A survey shows more Baby Boomers are putting off retirement

Updated:

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By:
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Mark Huffman
Reporter

Mark Huffman has covered consumer issues since 2004, with a special focus on protecting and empowering older adults. A former news correspondent for the Associated Press Radio Network, Westwood One, and ConsumerAffairs, Mark brings decades of journalistic experience to RetirementLiving.com. He is passionate about giving consumers a voice and helping them make informed decisions. Mark has also created educational content, including Senior Scam Alert, a video resource designed to help seniors recognize and avoid fraud. He holds a B.A. from the University of Kentucky and lives with his family in Richmond, Virginia.

Photo by kate.sade on Unsplash

Key Insights

  • 30% of near-retirees (ages 61–65) are considering postponing retirement amid economic and Social Security concerns.
  • 65% of financial advisors are shifting retirement advice, with annuities now the top strategy.
  • Over half of Baby Boomers and Gen-Xers fear outliving their savings, with 95% saying protection is key.

As the largest wave of Americans approaches retirement age, economic uncertainty and concerns about the social safety net are prompting a national reevaluation of retirement timelines and strategies.

That’s the main takeaway from the 2025 Protected Retirement Income and Planning (PRIP) study conducted by Ipsos. Dubbed “Peak 65,” the milestone marks the year when more Americans than ever—specifically those aged 61 to 65—are entering or approaching the traditional retirement threshold. But rather than celebrating the end of their working lives, many are hitting pause.

Rethinking retirement

Among consumers aged 61 to 65, 30% are considering delaying retirement. For those aged 45 to 75, 28% are contemplating the same, especially individuals lacking protected income like pensions or annuities. Financial advisors confirm the trend, with 28% reporting their clients have already postponed retirement.

Concerns about Social Security loom large:

  • 58% of Americans aged 45 to 75 fear benefit reductions.
  • 52% say they trust Social Security less than they did five years ago.
  • More than one-third are now considering claiming benefits earlier than planned.

“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. “Chaotic changes at the Social Security Administration and heightened fears over the program’s future are prompting many to act sooner rather than later.”

Inflation, healthcare, and longevity drive anxiety

Economic pressures, especially inflation and healthcare costs, are at the forefront of retirees’ concerns. Among surveyed consumers aged 45 to 75:

  • 67% cite inflation as their top financial worry in retirement.
  • 60% point to healthcare costs.
  • 54% fear outliving their savings, up from 48% last year.

Beyond finances, major health issues, dependency on others, and cognitive decline rank among the most feared quality-of-life challenges.

Many retirees are already feeling the squeeze. Nearly half (47%) report anxiety when spending money in retirement, while 33% say they’re depleting savings faster than expected. Some are even returning to work: of those who did, 51% cited financial need, and 37% sought social or mental stimulation.

As consumers look for greater financial protection, financial advisors are changing course. A notable 65% have modified their retirement investment approach this year. Among the most significant shifts, more advisors are recommending fixed-income assets, such as bonds and annuities.