A Majority of Americans Plan on Delaying Retirement More Than Three Years

Updated July 2026

More and more American workers are pushing retirement back, some by as much as three years past what they’d originally planned. Blame the economy. Confidence in personal savings, government benefits, and company pensions has taken a beating, and the 2008 crash still casts a long shadow over how people think about their financial futures.

Sun Life Financial runs an annual survey behind its Unretirement Index, a gauge of how confident Americans feel about their retirement income and overall security. This year’s version, drawn from 1,499 working Americans between ages 18 and 66, points to a workforce that’s increasingly nervous about ever leaving it.

The Retirement Delay Dilemma

Ask people about their timeline and 61% will tell you they’re pushing retirement back by at least three years. Back in 2008, that number sat at 43%. So over two-thirds of the people surveyed now expect to work longer than they’d hoped. The same data shows 87% believe it’ll take at least three years just to rebuild what they lost in the 2008-2010 downturn.

Picture a 58-year-old in Chicago, making $65,000 a year, carrying a 620 credit score and $18,000 in credit card debt. She might have to work until 66 to hit her retirement goal, eight years past the old 58 benchmark. Retire at 66 and she’s looking at roughly 20 years of expenses ahead of her. At $40,000 a year, adjusted for inflation, that’s close to $800,000 needed, and there’s still a gap nobody’s accounted for.

Things have shifted fast since 2011. The share of Americans expecting to retire by 67 dropped almost 30% in that single year, compared to just a 5% slide between 2008 and 2010. One in five people now say they expect to never retire, full stop. The Consumer Financial Protection Bureau (CFPB) has flagged the same pattern, noting that older workers keep deferring retirement because pension payouts fall short or future benefits feel uncertain.

A Crisis of Confidence

Economic instability is driving all of this. Confidence in retirement income has been sliding since 2010, when 42% of Americans felt very confident they could cover basic living expenses after leaving work. A year later, that number sat at just 23%. The steepest drops came in two places: employer-provided retirement benefits and health insurance coverage.

Confidence in traditional pensions, the defined benefit kind, fell 31.7% between 2010 and 2011 alone. That tracks with what the U.S. Bureau of Labor Statistics (BLS) has been reporting for years: private-sector pension coverage has been shrinking steadily since 2000.

Trust in government benefits hasn’t fared much better. In 2008, 22% of Americans thought Social Security would stay the same for future retirees. By 2011 that number had crashed to 9%. The Social Security Administration says the program’s trust fund reserves are on track to run dry by 2033.

Medicare confidence tells a similar story. Workers worry that rising medical costs and possible benefit cuts will make retirement unaffordable no matter how much they save. The Centers for Medicare & Medicaid Services (CMS) reports that out-of-pocket healthcare spending for seniors has been outpacing inflation, which only adds to the worry.

Why Workers Keep Pushing Retirement Back

Money is the biggest reason. Forty-nine percent of respondents named financial need as their top motivation for delaying retirement, up sharply from 30% in 2008 and 33% in 2010. Part of that comes down to living costs, especially housing prices that have surged in places like New York, Chicago, and San Francisco.

Debt makes it worse. Experian’s 2011 FICO Score report put average household credit card debt at $8,400, up from $7,100 in 2008. The Federal Reserve confirms debt-to-income ratios have climbed too, which squeezes whatever’s left over for retirement savings.

Fewer people now say they’re sticking around because they love their jobs. That reason dropped from 16% in 2008 to 11% in 2010, a sign that staying employed has become more about necessity than passion. BLS data shows the average worker now stays in a job about 23 months before considering a switch.

For workers between 50 and 64, the picture is blunt: 16% don’t expect to ever retire. Among those who do plan to eventually stop working, the average expected age is 66, meaning nearly a third of this group may simply have no choice but to keep going past what used to be considered normal retirement age.

Who’s Getting Hit Hardest

Workers in their 50s and 60s are absorbing most of the pressure. Pew Research Center’s 2009 study found 37% of full-time employed adults across all ages had thought about delaying retirement in the prior year, and 16% of those aged 50 to 64 said they expect to never stop working at all.

That paints a picture of older workers stuck in jobs they don’t necessarily want, simply because leaving isn’t financially possible. On average, Americans need around $1.2 million saved by age 65 to keep their standard of living intact. Factor in inflation and climbing healthcare costs, and even that number might not be enough.

Say you’re in your mid-50s, earning $70,000, with a 620 credit score and $8,000 tucked away for emergencies, aiming to retire at 66. You’d probably need to bump your 401(k) contributions to at least 10% and steer clear of new debt. That’s roughly the real-world cutoff: fall below an 8% savings rate, and retiring at 66 likely won’t happen.

There’s a catch, though. Workers dealing with chronic health issues or unstable jobs may not have the option to simply “work longer.” If you’re in poor health, or your industry churns through employees fast, stretching your career isn’t realistic. The average retirement age of 66 doesn’t apply evenly to everyone.

What’s Happening With Pensions and 401(k) Plans

Traditional pensions are disappearing. Most employers now hand retirement planning over to workers through defined contribution plans like 401(k)s. The U.S. Department of Labor (DOL) says only about 15% of private-sector workers still have access to a pension today, down from nearly 40% back in the 1990s.

That leaves millions managing their own portfolios with no safety net. No guaranteed payout means retirees risk running out of money early if markets turn volatile. The Securities and Exchange Commission (SEC) has warned repeatedly that poor investment decisions can drain retirement savings well ahead of schedule.

On top of that, contribution rates stay low. Workers put away just 6% of their paycheck on average, far under the 15% commonly recommended for a secure retirement. The IRS caps annual contributions at $16,500 for people under 50, but most workers never come close to maxing that out.

Longevity and Healthcare: The Risks Nobody Plans For

People are simply living longer, which changes the math. In 2011, life expectancy at birth hit 78.7 years, up from 75.6 in 1990. That means retirees may need to stretch their savings across 20 to 30 years after they stop working.

Medical costs compound the problem. The Agency for Healthcare Research and Quality (AHRQ) estimates the average 65-year-old spends $10,000 a year out of pocket on healthcare. For a lot of retirees, this isn’t about vacations and leisure. It’s about making the money last.

Retirement Confidence by Age Group

Frequently Asked Questions

What percentage of Americans plan to delay retirement by at least three years?

According to Sun Life Financial’s 2011 survey, 61% of working Americans plan to delay retirement by at least three years.

How has confidence in Social Security changed since 2008?

Confidence in Social Security benefits dropped from 22% in 2008 to just 9% in 2011, as per Pew Research Center data.

What is the average age people plan to retire by?

Among those who intend to retire, the average planned retirement age is 66, based on a 2009 Pew Research Center survey.

Why are more people delaying retirement now?

Mostly, it comes down to money. Forty-nine percent of respondents pointed to needing more income for future expenses, up from 30% in 2008. Inflation, healthcare costs, and shaky pension stability all play a part too.

What percentage of workers aged 50–64 say they never expect to retire?

16% of full-time employed adults aged 50-64 say they never plan to stop working, per Pew Research Center (2009).

How much money do people need to save for retirement?

Financial experts recommend saving around $1.2 million by age 65 to maintain a comfortable lifestyle. Yet the average 401(k) balance for those nearing retirement barely reaches $140,000.

What are the biggest financial risks in retirement?

Healthcare costs, inflation, market volatility, and longevity top the list. The Centers for Medicare & Medicaid Services (CMS) projects out-of-pocket medical expenses will rise by 3% annually.

Can 401(k) plans still provide a stable retirement?

They can, but it’s not automatic. Plans depend heavily on employee contributions and market performance, and with average contribution rates stuck at 6% and withdrawal costs rising, many people end up needing IRAs or annuities to fill the gap.

How does job tenure affect retirement planning?

The longer someone stays in a job, the less likely they are to switch. That reduced mobility, paired with burnout, can push retirement further out. BLS data shows job satisfaction drops off sharply after ten years in the same role.

Is it safe to assume Social Security will be available in 20 years?

Not necessarily. The Social Security Administration (SSA) projects trust fund depletion by 2033, which could mean benefit cuts of up to 23% without reforms.