Citing economic uncertainty and their own financial unpreparedness to exit the workforce, a growing number of older Americans are kicking retirement can further down the road.
Based on a new survey by life insurance and annuities company, F&G Annuities & Life, which polled 2,000 U.S. adults over 50 years old, 23% have already decided to delay their retirement as they struggle with their financial readiness, up from 14% in 2024.
Among the 23% in the F&G study who plan to delay claims on their Social Security benefits, half cited financial uncertainties or economic volatility as the primary driver of their decision to delay retirement — up 10% on last year.
By comparison, 44% worry about inflation concerns, while 34% cite a recession or stock market downturn.
These findings coincide with a recent study by Prudential Financial which reveals that the median savings of 55-year-olds is only an alarming $50,000.
Echoing similar sentiments to the F&G study findings, David John senior policy adviser at the American Association of Retired Persons (AARP) claims that most Americans nearing retirement age are unsure of whether they will have enough money to make it through retirement.
He told CBS MoneyWatch that inflation and general economic uncertainty remain the two overarching concerns.
John is witnessing a conscious cutting back by Americans on their retirement savings, with many are pulling money out of retirement savings to deal with unexpected costs or inflationary pressures.
"Of course, that helps in the short run, but that means that you have even more people who have worries once they start to get to retirement," he said.
Unlike 401(k)s and other retirement accounts, social security benefits are protected from inflation because the agency institutes a cost-of-living adjustment each year, AARP’s John noted.
To guard against disruptions to retirement plans, John is urging people to consistently put away money — even if it's just a small amount each month. "Save and continue to save," he said.
"Because any amount of retirement savings is going to be better than no retirement savings."
The average retirement age in the United States is 62, which is also the earliest age at which people can start claiming Social Security benefits.
The longer a person waits to claim Social Security, the higher benefits they'll receive from the program.
The full retirement age for people born in 1960 or later is 67, at which point workers can receive their full benefits.
However, those who delay claiming until age 70 can receive another 24% boost to their monthly payments.
