Retirement Expectations Are Changing in America
For decades, retirement planning followed a fairly predictable path. People worked into their mid-to-late 60s, claimed Social Security around their full retirement age, and hoped they had accumulated enough savings to support the rest of their lives.
But something interesting is happening. Recent research suggests that fewer Americans expect to work full-time beyond age 62. At first glance, that may seem surprising.
After all, we're living longer than previous generations. Healthcare continues to improve. Retirement can last 25 to 35 years or more. Financial headlines constantly warn that retirees need millions of dollars saved to retire comfortably.
So why are more people expecting to retire earlier?
The answer may reveal important shifts in how Americans view work, retirement, lifestyle, and financial independence.
The Surprising Data Behind Retirement Expectations
Research from the Federal Reserve Bank of New York examined retirement expectations over a ten-year period. The findings showed a noticeable decline in the percentage of people who expect to work full-time after age 62.
The trend became even more pronounced following the COVID-19 pandemic.
This isn't necessarily a reflection of people becoming wealthier overnight. Instead, it appears to be driven by changing attitudes toward work and retirement.
Many Americans are beginning to ask a different question:
“Do I really want to spend my healthiest years continuing to work full-time if I don't have to?”
That shift in mindset is influencing retirement planning conversations across the country.
Retirement and Social Security Are Not the Same Thing
One of the most common misconceptions in retirement planning is the belief that retirement and Social Security must happen at the same time.
Many people assume they need to keep working until they claim Social Security benefits. In reality, these are two completely separate decisions.
You can retire from full-time work at age 62, 63, 65, or any age that fits your financial situation and still delay Social Security benefits.
In fact, delaying Social Security can often increase your lifetime benefits significantly.
For example:
- Claiming at age 62 results in a permanently reduced benefit.
- Claiming at full retirement age provides your standard benefit.
- Delaying until age 70 can increase benefits through delayed retirement credits.
The key point is that retirement does not automatically mean claiming Social Security.
Separating these decisions creates additional flexibility when building a retirement income strategy.
Why More People Want to Leave Full-Time Work Earlier
There isn't one simple explanation for the shift in retirement expectations. Instead, several factors appear to be contributing.
1. The Rise of Part-Time Work and Flexible Income
Many people no longer view retirement as an all-or-nothing event.
Rather than stopping work completely, retirees are choosing:
- Consulting opportunities
- Seasonal employment
- Freelance work
- Part-time positions
- Passion projects
- Small business ventures
In this scenario, someone may stop working full-time at 62 but still generate meaningful income for years afterward.
This hybrid retirement model gives people more freedom while reducing pressure on their retirement savings.
2. A Cultural Shift Toward Lifestyle
The pandemic caused many people to reevaluate what they wanted from life.
For years, retirement planning focused heavily on financial accumulation. Work hard. Save aggressively. Retire someday.
Today, many people are placing greater value on experiences, family time, travel, health, and personal fulfillment.
Instead of asking, “How much can I accumulate?” they are asking, “How much do I actually need?”
This subtle change in perspective can dramatically alter retirement decisions.
If a simpler lifestyle supports greater happiness, retirement may become achievable sooner than expected.
3. The Growth of Side Hustles and Gig Income
Technology has created countless opportunities for supplemental income.
Many retirees generate income through:
- Online businesses
- E-commerce
- Content creation
- Consulting
- Property rentals
- Marketplace sales
Someone who leaves a traditional career may continue earning income in ways that don't feel like a traditional job.
As a result, retirement becomes less about stopping work entirely and more about gaining control over how work fits into life.
Do People Actually Have Enough Money to Retire Earlier?
This is where retirement planning becomes critical.
While many people hope to retire earlier, hope alone isn't a strategy.
The reality is that some individuals can retire sooner than they realize, while others may need additional planning.
The challenge is determining which category you fall into.
Many Americans have been conditioned to believe they need an enormous nest egg before retirement becomes possible.
Financial media often promotes headlines such as:
- You need $2 million to retire.
- Retirement costs are exploding.
- You'll run out of money.
- Healthcare will bankrupt retirees.
- Social Security won't be enough.
While retirement risks are real, these headlines often oversimplify a much more complex situation.
Retirement success depends on many factors, including:
- Spending habits
- Income sources
- Social Security timing
- Tax planning
- Investment strategy
- Healthcare planning
- Lifestyle expectations
Two families with identical savings balances may have completely different retirement outcomes based on these factors.
The Hidden Problem: Fear-Based Retirement Planning
One of the biggest obstacles facing future retirees is fear.
Fear causes people to delay retirement unnecessarily.
Fear causes people to underspend during retirement.
Fear causes people to make emotional financial decisions.
Many retirees spend years worrying about running out of money when they may already have sufficient resources to support their goals.
This doesn't mean everyone should retire immediately.
It means retirement decisions should be based on analysis rather than assumptions.
A comprehensive retirement income plan can help answer important questions:
- Can I retire now?
- How much can I safely spend?
- When should I claim Social Security?
- What happens if markets decline?
- How do taxes affect my retirement income?
- Will my spouse be financially secure?
Without answers to these questions, uncertainty often becomes the default decision-maker.
Many People Are Closer to Retirement Than They Think
One of the most surprising discoveries many pre-retirees make is that they may be closer to retirement than they realize.
In some cases, people have accumulated more assets than they need.
Others have substantial home equity that can support future financial flexibility.
Some discover that modest adjustments to spending create a much stronger retirement outlook.
Others find that strategic tax planning significantly improves long-term retirement income.
The point is that retirement readiness isn't determined solely by the size of your account balances.
It's determined by how all the pieces fit together.
Could Simplicity Be the Answer?
Previous generations often embraced a simpler retirement lifestyle.
Retirement wasn't necessarily about luxury travel, expensive hobbies, or maintaining peak earning years indefinitely.
It was about freedom.
Freedom to spend time with family.
Freedom to pursue hobbies.
Freedom to volunteer.
Freedom to enjoy life on your own terms.
Today's retirees may benefit from revisiting that perspective.
If reducing expenses slightly allows you to gain years of freedom, that tradeoff may be worth considering.
Every retirement plan should reflect personal values rather than societal expectations.
The Importance of Knowing Your Number
The biggest risk isn't retiring too early.
The biggest risk is making retirement decisions without knowing the facts.
Some people assume they can retire when they can't.
Others assume they can't retire when they actually can.
Both situations can create costly consequences.
A personalized retirement analysis can help eliminate guesswork and provide clarity regarding:
- Retirement timing
- Income sustainability
- Social Security optimization
- Tax-efficient withdrawals
- Investment allocation
- Legacy goals
Whether your goal is retiring at 62, 67, 70, or somewhere in between, confidence comes from having a plan.
Final Thoughts
The trend toward earlier retirement expectations reflects more than just finances. It reflects changing priorities.
Many Americans are rethinking the relationship between work, money, and quality of life.
While retiring earlier isn't realistic for everyone, many people may be surprised to learn they have more options than they thought.
The key is replacing assumptions with a well-designed retirement strategy.
If you're wondering whether retirement is closer than you think, a comprehensive retirement income analysis can help provide the answers you're looking for.
Frequently Asked Questions About Retiring Before Age 62
Can I retire before age 62?
Yes. Retirement can occur at any age if your financial resources can support your lifestyle and income needs.
Do I have to take Social Security when I retire?
No. Retirement and Social Security are separate decisions. Many retirees delay Social Security to increase future benefits.
Is age 62 a good age to retire?
It depends on your savings, income needs, healthcare costs, and overall retirement strategy. There is no universal retirement age that works for everyone.
Why are more Americans expecting to retire earlier?
Factors may include lifestyle priorities, flexible work opportunities, remote work experiences, side income opportunities, and changing views about work-life balance.
How do I know if I can afford to retire?
A comprehensive retirement plan should evaluate income sources, expenses, taxes, investments, Social Security, healthcare costs, and longevity risks.
What is the biggest mistake people make before retirement?
Making retirement decisions based on assumptions rather than a detailed financial analysis is one of the most common and costly mistakes.
Daniel Wendol
Item #1
00:00:02
less people expect to work full-time past age 62 yeah you heard me right less people are expecting that they’re going to continue to work past age 62 yet life expectancies are up people are living longer people have less money according to all The Sensational headlines you read so if that’s the case why are people expecting to not work p 62 let’s bring in my co-host Tony Shore look at this I want to I’m going to reference nope you don’t like it oh where did you get that who said that
00:00:40
less people who first of all who says that because number one people are living longer and everyone I know is working longer of course a lot of people I know are independent financial advisers like yourself who help other people retire early and they themselves work into their late 70s so it’s like the Cobblers children have no shoes is that what they say that is what they say um I’ll tell you exactly where I heard it this is from the post pandemic shift in retirement expectations in the US the
00:01:14
Federal Reserve Bank of New York liberty Street economics May 9th 2024 and this is the link to those that are watching on YouTube you can follow it along so it’s a blur it’s they’ve been taking some data right and they’ve been asking people this question and I’m going to read the question to you Tony and you’re in you’re in this demographic of people they were asking oh sure I just want you to answer this question and then I’ll show you the actual charts from this the results from
00:01:47
this okay Tony thinking about work in general and not just your present job if you currently work wink wink nudge nudge yeah what do you think is the percent chance that you will be working fulltime after you reach age 62 100% without a doubt 100% yeah I don’t have any doubts I know as a fact I have to number one because I didn’t start saving when I was 21 and didn’t have the financial mind of Dan Wendell but uh now I’m on a better track because of you and your advice things like that however um
00:02:26
as long as my voice holds out now I would I should say 99% because you’re not no one’s in full control of whether they can work past a certain age because nobody has a crystal ball I mean you know man plans God laughs is the joke right man plans God laughs because tomorrow you know I lose my voice forever and then yeah I could be retired but um or have to maybe but uh barring any uh horrific thing happening to my voice I plan on working till at least 6 67 okay that’s my full retirement age
00:03:04
with Social Security that’s kind of when I think I’ll they’ll force me out at work uh you know I just hopefully not but I just overheard a conversation recently um and the woman was saying man my husband I just was looking at his social security statement and it said his full retirement age is 70 so immediately I wanted to jump in there and director and say no that’s full time in age of 67 but he can wait till 7 but I just kept quiet and she’s like but there’s no way he’s
00:03:38
working a 70 he you know he he’s not going to be able to last long you know he he’s ready to retire now um but you know to get his full retirement benefit he’s got to go to 70 and I was like well and so I couldn’t help myself finally I jumped in I was like well let’s talk let’s separate these two issues he can retire and not work any more doesn’t mean he’s got to take Social Security so he can retire now and then claim Social Security at 70 those two don’t go hand in hand I think
00:04:08
a lot of people put those hand in hand a lot of people equate retirement with either Social Security Medicare or both right and so we we just did a past show I’ll put it up here I think last week or the week before where we said taking social security at 62 is not necessarily a good idea for people yet when you think about the answers that I’m about to present my screen here um here’s what the data is saying people are changing can you see this let me take that off this is the
00:04:39
average likelihood of working full-time past age 62 and that chart starts on the left from March 2024 all the way to March 20 I mean 2014 to March 2024 and you see there’s been a steady drop off in the people expecting to work full-time past 62 oh I have a question yes I have a question the answer to that question would depend on the age of the person they’re asking because if you ask my children if you ask my 19-year-old you know what H how old do you think you’ll be will you want to
00:05:20
retire before 62 in her mind 62 is ancient that’s like oh my gosh that’s an old person I don’t want to be working when I’m 62 so if they ask my age or above people I know that are 55 and older most of the people I know 55 and older are like no I’m not retiring until I mean most not all but most yeah I’m looking at the data from the S I’m on the website look but do you agree with me Dan that the age of the person they ask would dictate the answer yes I do I do I do agree that that would change I
00:06:00
don’t mean to throw off what your point you’re trying to make no um no but the there I’m looking it’s internet based survey of a rotating panel of approximately 1300 heads of household heads oh so hopefully an older adults yeah I’m assuming but the trend however regardless of how off the numbers are when you’re talking about 1300 people to see this trend downward and if you look it’s surprising to me females more so are planning to work less past 62 interesting than males
00:06:37
um but and this dramatic shift and you see this dotted line on the chart that’s 2020 that’s covid so this is that’s when it really tanked right so people we’re trending kind of Flatline um you know 55% of people were saying they’re going to work past 62 and then it dropped to 45 so that’s a big drop off and the Federal Reserve Bank um people the people on this survey um Felix gazam and Wilbert they all three of my favorite names gazam and Wilbert um they all said what’s going on
00:07:23
here but they there was no data or there was no explanation they just wanted to point this out so I wanted to talk about my explanation but before I do I want to um present those that said they were going to work past 67 and you see a similar not as dramatic drop off of people working past 67 so it dropped off from the high 30s to the low3s so um I might be in the minority then what is interesting in this case there’s a big drop off for people making less than 60,000 which is weird because you figure
00:08:01
those with making less would have to work longer right so again there’s this drop off right there’s this drop off of people who expect to work full-time past 62 and so they go through some factors they don’t tell them which ones but they list them so I want to go through and just give my take on it get your take on it Tony and the first one that stands out is fulltime for part-time so maybe there’s this idea that once I hit 62 I’m going to go part-time right and so more M the
00:08:39
question becomes are more people going to go part-time did covid cause people to believe oh maybe I don’t need to work full-time I can I can work part-time and get by because they were working part-time and they kind of liked it maybe oh that was that was kind of fun work from home you know that worked I I could do this you know but then I would say well I don’t know uh I think the when you get closer to 62 the decision of whether or not you’re going to work full-time is more financial than
00:09:10
anything else but maybe people were um just saying I kind of like that part-time gig um I’m going to skip cultural shift because I think that’s the real answer uh higher net worth uh or net wealth or savings more people reaching their savings goal I don’t see that I don’t know I you talk to people every day about these types of things and I kind of you would have a handle probably on that I mean people’s net worths are higher 401K balances are all-time Highs but we had inflation
00:09:43
so really are the balances relatively that High um people saved a lot of money during Co true they weren’t going out weren’t so savings went up but now credit card balances are back way up so spending didn’t stop um I don’t know I don’t know if that’s it I don’t think people are have more money so they’re like oh I’m going to work less I don’t see that and all I mean a small percentage of course fit that bill but not I don’t see the majority of Americans fitting that
00:10:16
especially those with less than 60,000 of income you know that I don’t think yeah that doesn’t make any sense I don’t think they’ve because it’s really tough to save money when you don’t make that much um especially now at days with inflation right confidence in their ability to have their Investments grow um or investment growth has been so good that people are like oh yeah well I can retire because you know my assets are going to last a whole lot longer because I can I can get a great
00:10:46
return maybe for the people that invested in Bitcoin the cryptos like they were like yeah let’s you know back they started doing that in 2014 the first and then all of a sudden now they’ve quintupled their money in a short amount of time they’re like oh that’s easy I can you know I don’t think that’s it though no I don’t I don’t know I mean granted we don’t have all the data this this this report said this is an interesting D Dynamic we need to research this and find out why so
00:11:15
there is no answer as to why this is happening um how about lower life expectancy expectations people think they’re going to live shorter lives yeah because I think I think personally think that from what I’ve seen and read people are living longer I think there were a couple years they say no the data showed life expectancy went down but the op the opioid epidemic I read about it you know in reputable you know there’s reputable scientific studies that have been done by Colombia and other
00:11:48
universities um the whole reason life expectancy went down was because of the opioid EP epidemic and then we had covid so uh but overall if you make it to a certain age you’re more than likely to live a lot older than you would have 20 years ago I mean that’s just a fact yeah but do people believe that do people think they’re going to live long yeah a lot of people like I’m not going to live that long you know my grandfather lived to 101 and I’m like no way I’ll make it he wasn’t hitting pizza buffets every
00:12:17
day you know like I am right so I here’s my take on it I don’t think people think they’re not going to live long I think most people think they’re going to live longer than their parents or they just don’t know they may not want to they may not want to live that long again it depends on what age and circumstances they are you know I think my 19-year-old thinks she’s going to live forever right but at the same time she thinks 62 is you’re really old that’s like end of life so
00:12:50
you youth is you know some of this is lost on youth I will say that again but yeah and I think that people are looking at the Boomers and these are boomers that were probably interviewed and they’re saying well they got a bunch of money I’m going to inherit so they might be thinking as a wealth transfer going to happen um but my thing I think and it might just be a blip or could be a a trend there’s been a cultural shift I think people have there was that quiet quitting or the great re
00:13:23
or great what was what was it called everyone left the workforce um and yeah there’s quiet quitting and there’s um yeah there was a big shift to and I think people were like wait a sec I you know Life’s too short to be working all the time um people they realize how much how much they more they enjoyed not going into the office I mean that’s the bottom line that’s it right is it could it be that simple yeah that I agree with that I think I think this study the results are probably more like agree
00:14:00
with you cultural shift and then maybe part-time work you know not retiring but still doing something part-time and I think part of the cultural shift is relying on gig economy so somebody might say yeah I’m going to retire from my job well their career what they mean is their full-time career they’re retiring from but really they’ve got you know I’ve I I’m making a ton of money uh hitting um you know estate sales and garage sales and reselling it on eBay I’m making more than I did or
00:14:34
I’d make wooden maps in my garage at home I mean there’s somebody out there crazy enough that he’s probably you know he’s got a full-time job but he’s going home and I’m pretty handy I’ll get a laser cutter and cut some maps and wow I’m selling a ton of these things at exorbital and worth every penny but um eventually he’s like yeah I’m going to retire so if they have interviewed him he’s like I’m retiring but not from you know he’s still you know maybe got a
00:15:07
side career a side hustle that’s turned into something bigger maybe I don’t know do you think I mean do you know anyone like that I mean I’m I have a couple of people one in particular um but you know I think about that got me um the people that are do you think that there’s a culture shift away from um excessive spending and keeping up with the Joneses maybe people are saying I don’t need that much anymore because I don’t need to keep up I don’t think I’m still desperately trying to
00:15:41
not for me personally I’m desperately trying to keep up with you I mean I’m trying to I’m desperately trying to keep up with the wendles and the Hiles of the world out there I mean I’m not going to name names Dan Wendol or mid child but I don’t know how I can keep up with you guys on the co-host salary you know and I don’t think don’t think people are T toning that down either I don’t think that’s the case when I say cultural shipped I don’t think people are seeing
00:16:06
that you live you need less to live I because spending is up so people are still spending ridic I think people still spend our economy at least here in the United States and probably worldwide I mean it’s a it’s a yeah it’s a consumer-driven world right now that we live in people so it’s not necessarily people are saying I don’t need as much they’re just saying maybe culturally I don’t want to work as much I don’t like it I don’t so it’s interesting I wonder if that
00:16:38
expectation is realistic or if it’s unrealistic meaning all these people say yeah I’m not going to work past 62 but when push comes a shove they’re going to say uh maybe so the question is will they adjust their lifestyle lower so they can stop working at 62 or part time or are they just going to get into a roote Awakening see a lot of the sensation or are more people doing a better job saving and working with now that there are independent financial advisers who are more readily available
00:17:10
and do YouTube shows I’m not going to name names Dan Wendell but you know I think this is much more prevalent when I was I wish when I was 40 I knew hey I could I could be working with a financial adviser and putting money away and I just thought oh I’ll worry about I don’t have to worry about that I’m young there is more information yeah there is more uh I think people might be better off I mean my daughter is 21 and she has a Roth IRA I mean with a Roth that’s my goodness
00:17:41
that’s insane well of course they didn’t exist when we were 17 right that’s what I’m saying so that that is that’s also a cultural shift you know so maybe the maybe the Youth of today W will be able to retire at 62 if they’re saving properly but again I think that’s an outlier not the major majority of people probably but well so if you read The Sensational headlines on all the financial media outlets and the headlines are such things such as you need two million to retire it’s not 1
00:18:12
million anymore or you know um will I ever retire you know I make this much money and I still am poor I don’t think I think a lot of the media or everyone’s living longer you need 40 million to have long-term care I think the fear-mongering is so high that this seems out of whack and people retiring at 62 seems out of whack but I see more and more people coming to me and granted the people that come to me have means they don’t they’re not living paycheck to paycheck right how do I
00:18:46
retire they’re saying I have some saved how do I pull it off but I’m finding that my goal is to get people to retire earlier than they expect and I usually am successful at that because people are saving more than they need or they’re scared to spend out of fear and a lot of that fear is driven by headlines and fearmongering from the financial services industry or the insurance industry saying oh you’re G you’re going to run out which is not the case and more and more people are realizing maybe
00:19:13
I do have enough maybe they’re realizing they can tap into the equity in their home a lot of people are not seeing that as the golden you know Goose that no one touches um so I don’t know what I will say this though Tony whatever the reason people are expecting to retire sooner according to this this survey and this trend and um I think maybe this is good I don’t know maybe it’s good because who wants to work well yeah a lot of people I mean you know if you ask people the majority
00:19:47
are going to say would you like to retire early yeah I guess so although you know a lot of people I know love their jobs still but I guess we’re maybe in the minority I guess I have I have a skewed perspective because I love my job I have an easy job I talk to folks like you and I do voiceover work and as long as my voice holds out and so there’s a difference between expect you know you might expect but that the question doesn’t say do you expect to retire uh full-time and also work po CH we’re just
00:20:21
assuming yeah that we don’t know when we say not work full-time that could mean a lot of things yeah it could I think it’s a good TR remember that guy and his garage making Maps yeah it’s you know you never know um get to the right client and next thing you know um especially if you start giving referral fees to your clients you know that would that would probably Bo business but yeah so my hope Tony is that people are starting to realize that work is and everything that enjoying the early years
00:20:49
of retirement is a good idea and that yeah you might suffer with financial uh less income in retirement if you retire early but is that the a bad thing maybe you don’t need as much maybe you can reduce your lifestyle and live simply and um I think that’s the answer we just last week I show was living a or doing the simple retirement of the of the 1960s whatever happened to that maybe if you do that watch that show maybe you can retire at 62 and not fall into the Trap that so many have fallen into in
00:21:21
the past so yeah well you always tell me that people a lot of people come to you and think they have to work longer than they actually do and you show them how they can retire right now or earlier than they thought so I want to encourage our listeners out there to get a hold of you and you know maybe get if they think they have a plan or they’ve worked with somebody get a second opinion or if they don’t have uh an investment plan a retirement plan in place uh they should go to you and get one and see hey maybe
00:21:50
they can retire early and the key is if you do or you don’t the only way to feel good about it is to find out really from a professional like if the answer is you do have to work longer that’s more palatable than I don’t know because I don’t know means you freeze and fear yeah it’s better yeah that’s no good and you’ll be better in the long run so how can our listeners get a hold of you I’m gonna put the uh contact information up in a moment um the but the easiest way is the call
00:22:28
888-585-2719 reason why you said you weren’t going to uh retire at 62 because you’re already there and you were like still working my side from the laughter that’s a good one that’s great catch everyone next week all matters discussed in today’s show for informational purposes only this show is not investment advice Dan Wendol nor Dolphin Financial Group are affiliated or endorsed by any government agency investment advisory services are offered through Dolphin Wealth Management Inc a
00:22:58
registered investment adviser in the State of Florida Insurance products and services are offered through Dolphin Insurance Inc dolphin Wealth Management Inc and dolphin Insurance Inc are affiliated companies doing businesses as dolphin Financial Group you should talk to someone at Dolphin Financial Group before implementing any of these strategies or ideas