The Reality of Retirement Work: A Gap Between Expectations and Actions
Planning to work in retirement Don t – Despite widespread anticipation, many Americans find that the dream of working in retirement doesn’t always materialize. A recent survey reveals that while the majority of workers envision continuing their careers after retirement, fewer than one-third of retirees actually do so. This discrepancy highlights a persistent disconnect between what people hope for and what they experience in their post-work years.
Survey Insights: Expectations Outpace Reality
The 2026 Retirement Confidence Survey by the Employee Benefit Research Institute (EBRI) underscores this gap. According to the findings, about 75% of American workers anticipate working for pay after they retire. However, the survey also found that only 31% of retirees are currently employed, a stark contrast to their expectations. This pattern has remained consistent across EBRI’s research for over two decades, with the percentage of working retirees never exceeding 34% in any given year.
Experts suggest that these misaligned expectations stem from a fundamental misunderstanding of retirement and the labor market. Craig Copeland, director of wealth benefits research at EBRI, noted in an April interview with USA TODAY that many people assume they can ease into retirement by reducing their hours or transitioning to part-time roles. Yet, the reality is often more abrupt. “People do expect to gradually transition by reducing hours, but what ends up happening is, they end up stopping completely,” Copeland explained.
Factors Behind the Divide
The survey also highlights how retirement is often not a choice but a result of external circumstances. Health issues, corporate layoffs, or unforeseen financial needs can force retirees to return to work, sometimes without prior planning. “Retirement often arrives suddenly and unexpectedly, triggered by health setbacks or corporate downsizing,” Copeland added, emphasizing that many individuals are not prepared for this shift.
Moreover, the availability of part-time or flexible work options remains limited. While some workers imagine a smooth transition to part-time roles, the scarcity of such opportunities in professional fields makes this aspiration difficult to achieve. “Easing from a full-time to part-time schedule in a professional field is not as easy as it might sound,” Copeland remarked. The challenge is compounded by the difficulty older Americans face in securing new employment. Maura Porcelli, senior director of workforce at the National Council on Aging, echoed this sentiment: “Re-entering employment can be very difficult when you’re an older jobseeker.”
Retirement as a Financial Strategy
The desire to work in retirement is often tied to financial concerns. Many Americans fear they haven’t saved enough to sustain their lifestyle, leading them to view continued employment as a safety net. According to EBRI, nearly two-fifths of workers lack confidence in their ability to fund retirement, a trend that has grown alongside rising inflation and economic instability. “The persistent desire to work in retirement reflects a widespread hope that they can maintain financial stability by keeping their income streams alive,” Copeland noted.
However, the data shows that reliance on paid work during retirement is not as common as expected. In the EBRI report, 75% of workers stated they plan to use employment as a source of income after retiring, yet only 27% of current retirees reported doing so. This gap raises questions about how realistic these plans are. “It’s a huge disconnect between what people expect and what they actually do,” Copeland said, pointing out that economic and personal factors frequently disrupt even the most well-intentioned strategies.
Conflicting Data and Semantic Ambiguity
Other surveys further complicate the picture. The Transamerica Center for Retirement Studies reported that 48% of pre-retirement Americans plan to work in retirement, while 32% do not, and 19% are unsure about their future. These figures suggest a broad spectrum of attitudes, with some viewing retirement work as essential for financial security and others seeing it as optional. “Many workers are planning to work in retirement for financial and healthy aging-related reasons,” said Catherine Collinson, CEO of the Transamerica Center, during an April interview. “However, the experience of retirees shows that life happens,” including health issues, family responsibilities, or job loss that abruptly ends a career.
The semantic ambiguity surrounding retirement also plays a role. For instance, if an individual takes a job after retiring, does that still count as retirement? Collinson pointed out that this question reflects differing societal views. Some consider retirement a phase of life where one is no longer working, while others see it as a flexible period that can include part-time or temporary employment. “The definition of retirement can vary depending on individual goals and circumstances,” she said, highlighting how the term itself is often used interchangeably with work.
Work in Retirement: An Oxymoron?
At first glance, the concept of working in retirement seems contradictory. It challenges the traditional notion that retirement is a time to step away from the workforce. Yet, this duality is increasingly common. The idea of using employment as a source of income during retirement is not new, but its implementation is proving more complex in today’s economic landscape.
For some, working in retirement is a way to stay active and engaged. Others see it as a means to supplement their savings or delay the financial burden of full-time retirement. However, the survey data indicates that this plan is rarely executed. The EBRI survey, based on responses from 2,544 Americans in January, found that only 31% of retirees are working, despite their pre-retirement expectations. This suggests that while the desire to work in retirement is strong, the ability to do so is often constrained by market conditions and personal readiness.
Copeland emphasized that the shift from worker to retiree is not always straightforward. “In many cases, to keep working in retirement, you’re going to have to find a whole new job,” he said. This reality is particularly challenging for older workers, who may face age-related biases or fewer opportunities in the job market. “It’s hard to find a whole new job when you’re older,” Copeland added, underscoring the difficulties that come with re-entering employment later in life.
As the retirement age continues to rise, this trend may become even more pronounced. With people living longer and saving less, the need to generate income through work is increasing. Yet, the infrastructure to support this, such as part-time employment options or job transition programs, may not keep pace. This mismatch between expectation and experience could have lasting implications for financial planning and retirement satisfaction.
A Path Forward
While the data reveals a clear gap, it also offers insights into how Americans approach retirement. For many, the hope of working in retirement is a motivational tool, encouraging them to save more and plan better. However, as the survey results show, this hope is not always fulfilled. The challenge lies in balancing the desire to work with the realities of the labor market and personal circumstances.
Ultimately, the divide between planning and execution highlights the importance of realistic expectations. Retirement is often a dynamic phase, influenced by both internal and external factors. As Copeland noted, “The experience of retirees shows that life happens,” and this can alter the trajectory of retirement plans in unexpected ways. Whether through health issues, economic pressures, or personal choices, the path to retirement is rarely linear, and the dream of working in retirement may require more flexibility than many anticipate.
