Most American workers harbor aspirations of remaining in the workforce after reaching retirement age, with about three-quarters indicating a desire to earn income during their retirement years. However, a stark reality emerges from recent findings: only 31% of those who have retired end up working in some capacity. This disparity underscores a persistent gap between the expectations and realities that many face as they transition from their careers.
The 2026 Retirement Confidence Survey, conducted by the Employee Benefit Research Institute (EBRI), reveals that, despite a consistent belief among workers—dating back to 1999—that they will continue to earn a paycheck during retirement, the actual percentage of those who do is significantly lower. Over the years, this expectation has remained stable, with 70% to 80% of workers believing that working in retirement is feasible. Yet, the figure for retirees actively working has remained below 34%.
Experts attribute this disconnect to foundational misunderstandings of both retirement and the labor market landscape. Many workers envision a gradual transition into retirement, possibly through part-time positions or consulting roles with previous employers, but the reality often diverges sharply. Sudden changes, such as health issues or corporate downsizing, can force many into an unexpected retirement. Once retired, re-entering the job market can present significant challenges.
Craig Copeland, the director of wealth benefits research at EBRI, notes that while employees frequently anticipate a smooth transition, they often find themselves halting work entirely. For those wishing to continue working, the prospect usually entails seeking new employment, which can be particularly daunting for older individuals navigating a competitive job market.
Concerns over financial preparedness play a crucial role in these aspirations. The survey indicates that approximately two-fifths of workers express a lack of confidence in their financial stability during retirement. With rising inflation and economic uncertainties, the need for income through work becomes increasingly pressing. In the EBRI report, 75% of respondents highlighted expectations of utilizing work as a financial resource in their retirement plans, with paid work ranking fourth among anticipated income sources, following Social Security and retirement savings.
The challenges of accessing part-time roles, coupled with age-related biases in hiring, complicate the prospects for working retirees. Maura Porcelli from the National Council on Aging emphasizes that older job seekers often face substantial hurdles when attempting to re-enter the workforce.
Many individuals hold firm intentions of working post-retirement for both financial reasons and the desire for a fulfilling lifestyle. A recent report from the Transamerica Center for Retirement Studies corroborates this, with nearly half of pre-retirement Americans expressing plans to continue working. Factors influencing this decision range from financial pressures to a desire for engagement and purpose in life.
Recent statistics indicate a notable trend: an increasing number of retirees re-entering the workforce, with a February report from AARP revealing that 7% of American retirees had recently resumed working. Financial necessity, coupled with economic uncertainties, often catalyzes this return to work. AARP’s Carly Roszkowski highlights the fears many retirees have regarding the longevity of their savings, exacerbated by rising living costs.
Ideally, Roszkowski reflects, retirees would work out of desire rather than necessity—seeking purpose and fulfillment, while having the financial security to choose their paths freely. For many, the impetus to work is driven by the belief that they still have much to contribute and a longing for meaningful engagement. As societal attitudes towards retirement evolve, the experience of retirees continues to challenge traditional notions of what it means to be retired.
