If the thought of your golden years makes you more anxious than excited, you’re not alone.
Nearly two-thirds (63%) of Americans surveyed for U.S. Bank’s 2025 Wealth Report are concerned about having to return to work after retirement. (1)
The Bank of America survey found that despite making responsible choices like budgeting and investing, many Americans feel that progress toward their financial goals is “increasingly elusive” due to economic factors beyond their control.
About three-quarters (77%) of respondents said the current economic climate is impacting their retirement timelines. According to Bank of America, 86% of Gen Z and 86% of Millennials feel this way, while 79% of Gen X and 55% of Baby Boomers feel similarly.
The younger generation faces a very different reality than their predecessors. They live longer, are less likely to have defined benefit pension plans, and rely more on personal savings. They also face inflation, rising costs of living and job market uncertainty.
“In the U.S., retirement is largely self-funded. We don’t have the social safety net that we have in parts of Europe, and confidence in government programs like Social Security is shaky,” Adam Spiegelman, founder and wealth advisor at Spiegelman Wealth Management, told Newsweek. (2)
And they may not have as much savings as they would like. According to Fidelity, the average retirement savings balance of Generation X, the oldest of whom are over 60, is $192,300 in a 401(k) and $103,952 in an individual retirement account (IRA). (3)
Meanwhile, Millennials are entering a critical period of saving, with an average of $67,300 in their 401(k) accounts and $25,109 in their IRAs.
That’s far less than the $1.26 million Americans tell Northwestern Mutual they think they need to retire comfortably. (4)
Does this mean “non-retirement” is the next big trend? perhaps. A study by Indeed Flex found that the majority of baby boomers (88%) are currently working (either full-time, part-time or part-time) and 23% of retirees are considering part-time work to get extra cash. (5)
Taking into account the extent to which the economic situation of future generations will deteriorate, longer working hours appear feasible in the future.
Read more: Vanguard reveals what’s ahead for U.S. stocks, a wake-up call for retirees. Here’s why and how to protect yourself
While it may sound tedious, stress testing your retirement budget is one way to deal with the anxiety of delaying retirement or not retiring altogether.
“When clients take the time to forecast their revenue needs, account for inflation and stress test different market scenarios, the data often shows they are in better shape than they thought,” Spiegelman told Newsweek.
“You don’t have to work with a professional to get started — even a simple online calculator can help. But having a clear plan, coupled with realistic cash flow forecasts and contingencies, can turn fear into understanding,” he says.
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 after retirement, such as traveling abroad.
Stress testing your retirement budget takes into account unknown factors such as inflation and health care costs, and this can be accomplished with a “what-if” model. For example, you might consider how a period of market decline or inflation will affect your ability to meet your retirement goals and whether you need 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 retiring is not necessarily a bad thing.
According to the U.S. Bureau of Labor Statistics, more and more people age 65 or older are choosing to continue working—either out of financial necessity or personal preference. (6) In 2024, 19.5% of the population aged 65 and over will participate in the labor force, although more will be part-time.
Working longer hours can bring in more than just 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 may make it harder to reintegrate into society.
In addition to stress-testing your budget, you may also consider other retirement options. Options include delaying retirement, transitioning to part-time work, opening your own business, or finding 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); U.S. Bureau of Labor Statistics (6).
This article provides information only and should not be considered advice. It is provided without any warranty of any kind.