If the thought of your golden years causes anxiety rather than excitement, you\u2019re not alone.<\/p>\n
Almost two-thirds (63%) of Americans surveyed for US Bank\u2019s 2025 Wealth Report are worried they\u2019ll have to return to work after retiring. (1)<\/p>\n
US Bank\u2019s survey found that many Americans \u2014 despite making responsible choices like budgeting and investing \u2014 feel that progress toward their financial goals is \u201cincreasingly elusive\u201d because of economic factors beyond their control.<\/p>\n
About three in four (77%) respondents said the current economic climate is influencing 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.<\/p>\n
Younger generations face a very different reality from previous ones. They\u2019re living longer, they\u2019re less likely to have a defined-benefit pension plan and they\u2019re more dependent on personal savings. They\u2019re also facing inflation, a rising cost of living and uncertainty in the job market.<\/p>\n
\u201cIn the U.S., retirement is largely self-funded. We don\u2019t have the kind of social safety nets that exist in parts of Europe, and confidence in government programs like Social Security is shaky,\u201d Adam Spiegelman, founder and wealth advisor at Spiegelman Wealth Management, told Newsweek. (2)<\/p>\n
And they may not have as much saved as they\u2019d like. The average retirement savings balance of Gen Xers, the oldest of whom are turning 60, is $192,300 in a 401(k) and $103,952 in an individual retirement account (IRA), according to Fidelity. (3)<\/p>\n
Meanwhile, millennials, who are entering crunch time for savings, have, on average, $67,300 in a 401(k) and $25,109 in an IRA.<\/p>\n
This falls far short of the $1.26 million that Americans told Northwestern Mutual they believe is needed to retire comfortably. (4)<\/p>\n
Does this mean \u201cunretirement\u201d is the next big trend? Maybe. One study by Indeed Flex found that the majority of baby boomers (88%) are currently working (either full-time, part-time or in temporary work) and 23% of retirees are considering temp work for extra cash. (5)<\/p>\n
Considering that the generations to follow are largely worse off financially, a future of working longer seems feasible.<\/p>\n
Story Continues <\/p>\n
Read More: Vanguard reveals what could be coming for U.S. stocks, and it\u2019s raising alarm bells for retirees. Here\u2019s why and how to protect yourself<\/a><\/p>\n While it may sound tedious, stress-testing your retirement budget is one way to tackle anxieties about delaying retirement or unretiring head-on.<\/p>\n \u201cWhen clients take the time to project their income needs, account for inflation and stress-test different market scenarios, the numbers often show they\u2019re in better shape than they think,\u201d Spiegelman told Newsweek.<\/p>\n \u201cYou don\u2019t have to work with a professional to start \u2014 even simple online calculators can help. But having a clear plan, with real cash-flow projections and contingencies, turns fear into understanding,\u201d he said.<\/p>\n 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 any future spending goals in retirement, such as traveling abroad.<\/p>\n Stress-testing your retirement budget accounts for unknown factors such as inflation and healthcare costs, which can be achieved through \u201cwhat if\u201d modeling. For example, you could consider how a drop in the market or a period of inflation would affect your ability to meet your retirement goals and whether it would require going back to work. From there, you can spot vulnerabilities and make adjustments if necessary.<\/p>\n It might also be a good idea to accept that unretiring isn\u2019t necessarily a bad thing.<\/p>\n A growing number of people aged 65 or older are choosing to keep working \u2014 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 older participated in the labor force, albeit more on a part-time basis.<\/p>\n Working longer doesn\u2019t just bring in some extra cash. It can also provide structure and purpose. However, for those with chronic health issues, going back to work may not be a possibility. And, for some, ageism in the workforce could make it harder to reintegrate.<\/p>\n Along with stress-testing your budget, you could consider other approaches to retirement. Options include delaying retirement, transitioning to part-time work, opening your own business or looking for potential sources of passive income. Alternatively, you might consider moving to a lower-cost city, region or country.<\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n US Bank (1<\/a>); Newsweek (2<\/a>); Fidelity (3<\/a>); Northwestern Mutual (4<\/a>; Indeed Flex (5<\/a>); U.S. Bureau of Labor Statistics (6<\/a>).<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"If the thought of your golden years causes anxiety rather than excitement, you\u2019re not alone. Almost two-thirds (63%)…\n","protected":false},"author":2,"featured_media":210581,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[109760,2410,72,1890,176,61,60,44944,174,175,5070,1615,109759],"class_list":{"0":"post-210580","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-adam-spiegelman","9":"tag-americans","10":"tag-business","11":"tag-dave-ramsey","12":"tag-finance","13":"tag-ie","14":"tag-ireland","15":"tag-pension-plan","16":"tag-personal-finance","17":"tag-personalfinance","18":"tag-retiring","19":"tag-social-security","20":"tag-us-bank"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/210580","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=210580"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/210580\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/210581"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=210580"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=210580"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=210580"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}