Retirement is supposed to be the time when you sleep in and set your own schedule. However, recent surveys suggest most Americans believe they’ll be “clocking in” even when they’re technically “clocked out.”
Data from the Employee Benefit Research Institute (EBRI) (1) shows that 74% of workers say they plan to keep working well into their retirement. Despite this persistent belief in perpetual productivity, the EBRI noted that relatively few retirees actually jump back into the workforce. In 2026, only 31% of surveyed retirees are still working.
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Interestingly, the myth of working into retirement hasn’t waned over the past few decades. Every year since 1999, when the EBRI has asked Americans about this topic in the Retirement Confidence Survey (RCS), there’s been a similar percentage gap between expectations about work and reality.
EBRI found that this disconnect extends to how most Americans expect to fund their retirement. According to the RCS (1), 75% of workers said they would use wages from a job as a form of retirement income, making it the most common response after Social Security, a workplace retirement savings plan, and personal savings and investments. In reality, just 27% of retirees used pay from work to fund their retirement.
Retirees can’t count on an easy comeback
Not only are most workers overconfident about earning wages in retirement, they also tend to miscalculate when they’ll retire.
EBRI’s RCS showed the expected median retirement age is about 65, while the actual median is 62. Study authors also noted that 46% of respondents said they stopped working earlier than they had expected, often due to forces beyond their control like a health scare (41%) or a change at their company (35%).
Once people are out of the workforce, they often find it’s difficult to get back in. Data from AARP (2) revealed that the average length of unemployment keeps getting worse the older you get. By the time someone reaches 65, they often face 39 weeks of unemployment.
Craig Copeland, Director of Wealth Benefits Research for EBRI, explained this challenge to Moneywise, saying, “Even for those who remain healthy, it is difficult for older workers to find jobs that match their skills, particularly for those who only want to work part-time.”
And it seems like more older employees sense this anxiety, with 67% of respondents to AARP (3) admitting they’d have difficulty finding a new job today. Another AARP (4) survey showed that 22% of workers over 50 said they felt “pushed out of work” by their employers. A staggering 91% of respondents also said they felt age discrimination is “common” in today’s environment.
But even with all these barriers, the combination of rising costs and anxiety about savings is making people feel they need a steady income from a job. Allianz Life’s 2026 Retirement Study (5) showed just how dire this is becoming, with 67% of respondents literally more afraid of funds drying up than dying.
Read More: Almost 50 with no retirement savings? Here’s why you don’t have to panic
Plan for retirement realities, not possibilities
While there are plenty of people who keep working in retirement, all of these stats suggest it isn’t wise to bet on this source of income for your golden years. In fact, Copeland told Moneywise that retirees shouldn’t “expect that they can just keep working to fund shortfalls in retirement.”
The brutal truth is that circumstances often drive retirement decisions rather than personal choices. Although you can’t plan for unexpected events like health emergencies, you could stress test your current retirement portfolio in less-favorable situations to see how flexible it is.
It’s also worth paying attention to the true top sources of income for retirees per EBRI’s data (1). For instance, even though 89% of workers said they expected to rely on Social Security, that slightly underestimated how many retirees (92%) use this federal benefit.
ERBI also found that personal retirement savings and investments were common, with 68% of retirees using these funds for income. While that’s lower than the expected 76%, it’s more in line with reality than the 75% of workers who think they can earn money through a job.
As much as we all hope for retirement to go according to our desires, the stats show there’s a lot we can’t control, and regular work may not be in the cards. The only way to play it safe is to assume employment isn’t an option and focus more on your current investments and reliable income strategies like annuities.
The sooner you plan for multiple possibilities — either by yourself or with the help of an accredited financial professional — the better odds your finances can weather whatever life throws your way down the line.
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Employee Benefit Research Institute (1); AARP (2), (3), (4); Allianz Life (5)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
