Baby boomers reaching retirement age in their 60s are facing economic pressures that keep them in the workforce. Persistent inflation and rising living costs are causing even disciplined planners to reconsider retirement timing.
Data from Empower shows the median retirement account balance for this group is $544,439, while most Americans believe they need $1.26 million to retire comfortably.
A 2025 survey from F&G Annuities & Life, Inc. found 70% of pre-retirees over 50 are considering or delaying their planned retirement date. Among those polled, 48% worry they won't have enough money for retirement, and 50% cite wider financial uncertainties or economic volatility as reasons for postponing retirement, an increase of 10% from 2024.
Earlier Empower data showing an average retirement balance of $1,190,078 indicates many savers with higher incomes are closer to financial retirement goals, highlighting non-financial reasons for delaying retirement.
This generation is redefining retirement beyond financial readiness, seeking purpose, identity, social connection, and flexibility during their later working years.
A recent report from 24/7 Wall Street outlines various reasons boomers delay retirement and find gratification in continued work. Some choose work for fulfillment or explore creative fields beyond their original careers, while others value the social rewards of working over staying home.
Work driven by purpose, often associated with Gen Z, is actually more popular among older demographics. LinkedIn reports that boomers are 75% more likely than Zoomers to prioritize personal values when choosing jobs.
The AARP reports 25.8% of businesses were started by people over 50 in 2018, nearly double the rate in 1996. During the pandemic, boomers were more likely to re-enter the workforce, with 13.2% of retirees returning to work in 2023.
These changing retirement trends may impact younger Americans. The shift of full retirement age from 66 to 67 for boomers born after 1960 sets a precedent for delaying full Social Security benefits. Underfunding of the Social Security program is anticipated to affect younger workers, with current retirees less motivated to make changes benefiting younger generations.
Boomers staying in the job market may also impact younger workers, as current "low hire, low fire" trends make it harder for younger job seekers to enter the workforce.
Data shows working longer can improve financial security and physical and mental health outcomes, though not everyone reaches older ages in perfect health.