If the thought of your golden years causes anxiety instead of excitement, you’re not alone.
Nearly two-thirds (63%) of Americans surveyed for U.S. Bank’s 2025 Wealth Report worry about returning to work after retirement. (1)
A U.S. Bank survey found that many Americans — despite making responsible choices like budgeting and investing — feel that progress toward their financial goals is “increasingly elusive” due to economic factors beyond their control.
Three in four (77%) respondents said the current economic climate is impacting their retirement timeline. According to US Bank, 86% of Gen Z and 86% of Millennials feel this way, while 79% of Gen X and 55% of Boomers share similar sentiments.
The younger generation is facing a very different reality than the previous one. They are living longer, they are less likely to have a defined-benefit pension plan and they are more dependent on personal savings. They are also facing inflation, rising cost of living and uncertainty in the job market.
“In America, retirement is largely self-funded. We don’t have the social safety nets that exist in parts of Europe, and trust in government programs like Social Security is shaky,” Adam Spiegelman, founder and wealth advisor Spiegelman Wealth Management, told Newsweek. (2)
And they may not be saving as much as they would like. According to Fidelity, the average retirement savings balance of Gen Xers, the oldest of whom have reached age 60, is $192,300 in a 401(k) and $103,952 in an Individual Retirement Account (IRA). (3)
Meanwhile, millennials, who are entering crunch time for savings, have, on average, $67,300 in a 401(k) and $25,109 in an IRA.
That’s far less than the $1.26 million Americans believe Northwestern Mutual says they need to retire comfortably. (4)
Does this mean “retirement” is the next big trend? maybe A study by Indeed Flex found that the majority of baby boomers (88%) are currently working (either full-time, part-time or at a temporary job) and 23% of retirees are considering temporary work for extra cash. (5)
Given that the generations that follow are far worse off financially, a long-term working future seems possible.
Read more: Vanguard reveals what could be coming for US stocks, and it’s ringing alarm bells for retirees. Here’s why and how to protect yourself
Although it may sound tedious, stress-testing is one way to address concerns about delaying your retirement budget or retiring head-on.
“When clients take the time to project their income needs, account for inflation and stress-test various market scenarios, the numbers show they’re in better shape than they thought,” 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 projections 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 ongoing expenses. It should also include future spending goals in retirement, such as overseas travel.
Stress-testing your retirement budget accounts for unknown factors such as inflation and health care costs, which can be achieved through “what if” modeling. For example, you might consider how a period of market decline or inflation will affect your ability to meet your retirement goals and whether it will require you to go back to work. From there, you can spot weaknesses and make adjustments if necessary.
It might be a good idea to admit that unretiring is not necessarily a bad thing.
According to the U.S. Bureau of Labor Statistics, an increasing number of people age 65 and older are choosing to continue working — out of financial need or personal preference. (6) In 2024, 19.5% of people age 65 and older participated in the labor force, albeit more on a part-time basis.
Working long hours doesn’t just bring in some extra cash. It can also provide structure and purpose. However, for those with chronic health problems, returning to work may not be possible. And, for some, ageism in the workforce can make it difficult to reintegrate.
Along with stress-testing your budget, you can consider other approaches to retirement. Options include delaying retirement, transitioning to part-time work, opening your own business or exploring potential sources of passive income. Alternatively, you might consider moving to a lower-cost city, region or country.
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Bank of America (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. It is provided without warranty of any kind.
