If the thought of your golden years causes more anxiety than excitement, you’re not alone.
Nearly two-thirds (63%) of Americans surveyed for Bank of America’s 2025 Wealth Report are worried about having to return to work after retirement. (1)
The US Bank survey found that many Americans — despite making responsible choices like budgeting and investing — find progress toward their financial goals “increasingly elusive” due to economic factors beyond their control.
About three in four (77%) respondents said the current economic climate is influencing their retirement timing. According to US Bank, 86% of Gen Z and 86% of Millennials feel this way, while 79% of Gen Xers and 55% of Boomers share similar sentiments.
The younger generations face a very different reality than the previous ones. They live longer, are less likely to have a defined benefit pension plan and are more dependent on personal savings. They also face inflation, an increase in the cost of living and uncertainty in the labor market.
“In the US, retirement is largely self-funded. We don’t have the kind of social safety nets that exist in parts of Europe, and the reliance on government programs like Social Security is shocking,” Adam Spiegelman, founder and wealth advisor at Spiegelman Wealth Management, told Newsweek. (2)
And they may not have as much saved as they would like. The average retirement savings balance of Gen Xers, the oldest of whom turn 60, is $192,300 in a 401(k) and $103,952 in an individual retirement account (IRA), according to Fidelity. (3)
Meanwhile, millennials, who are entering the savings crunch, have an average of $67,300 in a 401(k) and $25,109 in an IRA.
That’s well below the $1.26 million Americans told Northwestern Mutual they think they need to retire comfortably. (4)
Does this mean “unretirement” is the next big trend? May be. A study by Indeed Flex found that the majority of baby boomers (88%) are currently working (either full-time, part-time or temporary) and 23% of retirees are considering temporary work for extra cash. (5)
Given that succeeding generations are largely worse off financially, a longer working future seems feasible.
Read more: Vanguard reveals what could be coming for US stocks and sounds the alarm for retirees. Here’s why and how to protect yourself
Although it may sound boring, testing your retirement budget is one way to address anxieties about delaying retirement or not retiring early.
“When clients take the time to project their income needs, factor in inflation and test different market scenarios, the numbers often show they’re in better shape than they think,” Spiegelman told Newsweek.
“You don’t need to work with a professional to get started—even simple online calculators can help. But a clear plan with realistic cash flow forecasts and contingencies turns fear into understanding,” he said.
A retirement budget includes all sources of income (such as retirement accounts, Social Security, investments, and passive income) minus your current expenses. It should also include any future retirement spending goals, such as foreign travel.
Stress testing your retirement budget takes into account unknown factors such as inflation and healthcare costs, which can be accomplished through “what if” modeling. For example, you might consider how a market downturn or period of inflation would affect your ability to meet your retirement goals and whether it would require you to return to work. From there, you can identify vulnerabilities and make adjustments if necessary.
It might also be a good idea to accept that not withdrawing is not necessarily a bad thing.
A growing number of people age 65 and older are choosing to continue working — either out of economic necessity or personal preference, according to the U.S. Bureau of Labor Statistics. (6) In 2024, 19.5% of people aged 65 and over participated in the labor force, albeit more on a part-time basis.
Working longer isn’t just about extra money. It can also provide structure and purpose. However, for those with chronic health problems, returning to work may not be an option. And for some, ageism in the workforce could make reintegration difficult.
In addition to testing your budget, you can consider other approaches to retirement. Options include delaying retirement, switching to part-time work, starting your own business, or looking for potential sources of passive income. Alternatively, you could consider moving to a city, region or country with lower costs.
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US Bank (1); Newsweek (2); Fidelity (3); Northwestern Mutual (4; Indeed Flex (5); US Bureau of Labor Statistics (6).
This article provides information only and should not be construed as advice. Offered without warranty of any kind.
