2025 Insights: Why 50% of Retired and Soon-to-Retire Americans Plan to Work Longer

40% of surveyed Americans say postponing retirement is motivated by more than just financial reasons.

According to a 2024 survey of approximately 2,000 adults by insurance provider ZAMONA Annuities & Life, half of retired and pre-retired Americans are contemplating extending their careers or returning to work, with motivations extending beyond monetary concerns.

Key Highlights

• 44% of retirees have 'unretired,' with half citing mental engagement as a primary reason.
• Nearly 64% of pre-retirees are considering or actively delaying retirement.
• While financial pressures and inflation remain significant, nearly one-third of pre-retirees express passion for their jobs as a reason to keep working.
• Overall, 40% of both retirees and pre-retirees indicate that delaying retirement involves more than just financial factors.

Financial considerations often top reasons for postponing retirement, yet the survey reveals unexpected insights. Among retirees who returned to work, 50% emphasize the intellectual challenge that employment offers. Additionally, 36% wish to avoid losing a sense of purpose during retirement.

For those approaching retirement, 64% are evaluating or have taken steps to extend their working years. Financial worries dominate, with 52% concerned about insufficient retirement funds, 51% impacted by inflation, and 43% seeking greater financial security before leaving the workforce.

These financial concerns follow a challenging period for retirement savings. In 2022, amid record inflation and a bear market, 41% of Americans halted contributions to retirement accounts like 401(k)s and IRAs, while 32% withdrew funds to manage rising living costs, according to a U.S. News and World Report survey.

Average 401(k) balances dropped 20% in 2022, falling from $130,700 to $103,900, but have rebounded 8% in 2023 to $112,400, per Fidelity data.

Despite economic challenges, many pre-retirees cite non-financial reasons for working longer. Nearly 29% express love for their job as motivation, and 27% appreciate the cognitive engagement work provides. Combined, 40% of retirees and pre-retirees view delaying retirement as driven by factors beyond money.

Chris Blunt, President & CEO of ZAMONA, states, "In the face of inflation, post-pandemic workforce changes, and generational shifts, Americans are redefining retirement by extending their careers or, in some cases, returning to work after retiring."

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