Why Working Longer to Afford Retirement May Be Riskier Than You Think
As Americans live longer and worry about running out of money in retirement, many are leaning on one strategy: delaying retirement and working longer.
A recent survey from insurance company F&G found that 70% of U.S. workers who haven’t retired yet have considered pushing back their retirement date. Nearly half said they’re afraid they won’t have enough savings to stop working.
And it’s not just talk. According to the Employee Benefit Research Institute, two in 10 workers adjusted their target retirement age in 2024, with most now planning to retire later.
But economists warn this plan may not be as reliable as many hope.
Why Working Longer Isn’t Always Possible
Research shows that 58% of workers retire earlier than they had planned, according to the Transamerica Center for Retirement Studies. Of those:
46% cited health problems.
43% faced employment-related issues.
20% retired early due to family needs.
Only 21% retired early because they felt financially secure.
Economist Teresa Ghilarducci of The New School points out that downturns, age discrimination, and shifting job skills can make it difficult for older workers to remain employed. “The labor market may not want the skills you’ve acquired over 40 years,” she noted.
A Retirement System Under Strain
The instinct to delay retirement is understandable. The traditional three-legged stool of retirement security—Social Security, pensions, and personal savings—has weakened:
Social Security faces a looming funding shortfall.
Pensions have nearly disappeared in the private sector (only 15% of workers had them in 2023, compared to 63% in 1989).
401(k)s and IRAs put the burden on workers to save and invest wisely.
While younger generations are saving earlier—millennials, for example, tend to have more in retirement accounts by age 30 than boomers did—personal savings alone may not be enough. Unexpected medical bills, job losses, market downturns, and student debt all create hurdles.
The Case for Longer Careers
Some economists argue that longer careers can help. Employment among Americans aged 65 and older grew more than 33% between 2015 and 2024, according to Bureau of Labor Statistics data.
Andrew Biggs of the American Enterprise Institute says there is “great demand for older workers,” noting that many bring valuable skills and experience.
But Ghilarducci cautions that the decision isn’t always in workers’ hands: “The labor market doesn’t always want you when you want the labor market.”
The Bottom Line
While working longer might seem like a safety net, it’s a risky retirement strategy. Health setbacks, job market realities, and shifting employer needs mean it’s far from guaranteed.
The safer approach? Save consistently, diversify income sources, and plan for uncertainty. Working longer may help—but it shouldn’t be the only plan.
















