Why Millions of Americans Are Delaying Retirement — and It's Not Just Inflation

Many Americans are pushing back their retirement timelines. A recent New York Life survey found that 34% have already delayed retirement or plan to and nearly half (46%) of that group expects to push it back by five years or more.

While 45% cite inflation as a driver, this isn't the No. 1 reason. Here's a closer look at why so many Americans are delaying their retirements.

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Not Having Enough Savings Is the Top Reason for Delaying Retirement

Among Americans who have already delayed retirement or plan to, 46% say it's because they haven't saved enough — the No. 1 reason for this delay.

"Saving for retirement has become more challenging because many Americans are balancing competing financial priorities, from everyday expenses to debt and unexpected costs," said Matthew Wion, senior vice president and head of retail annuities at New York Life.

Over time, those tradeoffs can make it harder to build the savings needed to retire on a preferred timeline.

Inflation Is Also Making It Harder for Many Americans To Retire on Time

While not having enough retirement savings was the most commonly cited reason for delaying retirement, inflation followed closely behind, highlighting how rising costs can make it harder for workers to build adequate retirement funds.

"When more of a household's income is going toward higher everyday expenses, there can be less flexibility to save for the future," Wion said. "Inflation also raises questions about how much income people will ultimately need in retirement, making many feel they need a larger financial cushion before they're ready to leave the workforce."

Many Workers Want To Pay Off Debt Before Retiring

Thirty percent of those who are delaying retirement said they want to pay off all of their debt first. While paying off debt before retirement can be a smart move, it may not be completely necessary to pay off all of it, depending on your specific circumstances.

"The right approach depends on factors such as the type of debt, interest rates, available savings and expected retirement income," Wion said. "Rather than focusing on eliminating every balance before retiring, it's important to understand how debt fits into your overall financial strategy and whether your plan and income can support the lifestyle you want throughout retirement."

Social Security and Benefit Concerns Are Affecting Retirement Plans

Overall, 25% of those who have delayed or plan to delay retirement point to changes in benefits such as Social Security or pension eligibility ages. Among Gen Z respondents delaying retirement, that number jumps to 34%.

"Younger generations are planning for retirement in a very different environment than previous generations, with fewer traditional pensions and greater uncertainty around future retirement benefits," Wion said. "Encouragingly, our research suggests Gen Z is taking proactive steps, with nearly half already contributing to a 401(k) and many expressing interest in protection products — early signs they're thinking about building financial security over the long term."

What Experts Say About Staying on Track for Retirement

While some retirement delays may be unavoidable, experts say early planning can improve the odds of staying on schedule.

"Retiring on your own timeline starts with having a comprehensive financial strategy and reviewing it regularly as your goals and circumstances evolve," Wion said. "Retirement planning is about understanding how the assets you’re building can be converted into reliable, sustainable income that supports your lifestyle throughout retirement."

He recommended seeking out professional advice to ensure you stay on track.

"Working with a financial professional can help people make informed adjustments over time," Wion said, "and develop an income strategy that provides greater confidence and financial security in retirement."

This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.

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