If the thought of your golden years causes anxiety rather than excitement, you’re not alone.
Almost two-thirds (63%) of Americans surveyed for US Bank’s 2025 Wealth Report are worried they’ll have to return to work after retiring. (1)
US Bank’s survey found that many Americans — despite making responsible choices like budgeting and investing — feel that progress toward their financial goals is “increasingly elusive” because of economic factors beyond their control.
About three in four (77%) respondents said the current economic climate is influencing their retirement timeline. According to US Bank, 86% of Gen Z and 86% of millennials feel this way, while 79% of Gen X and 55% of boomers share similar sentiments.
Younger generations face a very different reality from previous ones. They’re living longer, they’re less likely to have a defined-benefit pension plan and they’re more dependent on personal savings. They’re also facing inflation, a rising cost of living and uncertainty in the job market.
“In the U.S., retirement is largely self-funded. We don’t have the kind of social safety nets that exist 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 saved as they’d like. The average retirement savings balance of Gen Xers, the oldest of whom are turning 60, is $192,300 in a 401(k) and $103,952 in an individual retirement account (IRA), according to Fidelity. (3)
Meanwhile, millennials, who are entering crunch time for savings, have, on average, $67,300 in a 401(k) and $25,109 in an IRA.
This falls far short of the $1.26 million that Americans told Northwestern Mutual they believe is needed to retire comfortably. (4)
Does this mean “unretirement” is the next big trend? Maybe. One study by Indeed Flex found that the majority of baby boomers (88%) are currently working (either full-time, part-time or in temporary work) and 23% of retirees are considering temp work for extra cash. (5)
Considering that the generations to follow are largely worse off financially, a future of working longer seems feasible.
Read More: Vanguard reveals what could be coming for U.S. stocks, and it’s raising alarm bells for retirees. Here’s why and how to protect yourself
While it may sound tedious, stress-testing your retirement budget is one way to tackle anxieties about delaying retirement or unretiring head-on.
“When clients take the time to project their income needs, account for inflation and stress-test different market scenarios, the numbers often show they’re in better shape than they think,” Spiegelman told Newsweek.
“You don’t have to work with a professional to start — even simple online calculators can help. But having a clear plan, with real cash-flow projections and contingencies, turns fear into understanding,” he said.
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 in retirement, such as traveling abroad.
Stress-testing your retirement budget accounts for unknown factors such as inflation and healthcare costs, which can be achieved through “what if” modeling. For example, you could consider how a drop in the market or a period of inflation would affect your ability to meet your retirement goals and whether it would require going back to work. From there, you can spot vulnerabilities and make adjustments if necessary.
It might also be a good idea to accept that unretiring isn’t necessarily a bad thing.
A growing number of people aged 65 or older are choosing to keep working — either out of economic necessity or personal preference, according to the U.S. Bureau of Labor Statistics. (6) In 2024, 19.5% of people aged 65 and older participated in the labor force, albeit more on a part-time basis.
Working longer doesn’t just bring in some extra cash. It can also provide structure and purpose. However, for those with chronic health issues, going back to work may not be a possibility. And, for some, ageism in the workforce could make it harder to reintegrate.
Along with stress-testing your budget, you could consider other approaches to retirement. Options include delaying retirement, transitioning to part-time work, opening your own business or looking for potential sources of passive income. Alternatively, you might consider moving to a lower-cost city, region or country.
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
US Bank (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 construed as advice. It is provided without warranty of any kind.
