Increasingly, today’s workers are aiming for a different type of retirement than has been the norm. A growing number of people in the workforce do not see retirement as a full exit from the workplace at age 65. Instead, many are hoping to ease into retirement. That’s one of the main findings from Fidelity’s 2026 State of Retirement Planning Study.
The plan vs. reality
In a news release announcing its latest findings, Fidelity noted that “72% of Americans say they will retire on their own terms as they embrace a new playbook.” The study found large numbers of workers across generations expressing confidence that they will be able to retire when and how they want.
About 60% of respondents said they “have a plan in place to transition into retirement.” For many, that means reducing their hours before retirement, taking on fewer responsibilities, or transitioning to freelance work. One potential problem is that a separate recent study from the Society for Human Resource Management found that just 7% of employers offer a formal phased retirement program. About 20% offer informal programs, where employees work out the details of such an arrangement with their supervisors.
A similar disconnect can be seen in the Employee Benefit Research Institute’s (EBRI) annual Retirement Confidence Survey. Year after year, workers show relatively high levels of confidence in their ability to retire comfortably while at the same time having seemingly too little saved for retirement. For example, in the EBRI’s most recent study, some 70% of workers expressed confidence about their future retirement whereas just 55% of those age 55 or older have at least $250,000 in retirement savings. Also, 40% of workers age 55 or older plan to retire at age 70 or older or never retire, whereas that was the actual experience of just 9% of today’s retirees.
The EBRI study found that 40% of current retirees left the workforce earlier than they'd planned. While some did so because they could afford to, many had to retire early because of health issues, the need to care for a loved one, or changes at their employer.
Key take-aways
In an important way, the trend of more workers aiming for a phased retirement is a positive sign. The Bible doesn’t teach us to retire. Plus, there are many indicators that a full-stop retirement often leaves people struggling with purpose-related issues and finding meaningful activities to fill their days.
Still, the realities of declining health or difficulties finding work in our later years mean it’s likely most of us will, in fact, one day retire from full-time paid work. The disconnects noted in the Fidelity and EBRI studies point to the need for better planning. The ideal is a combination of envisioning how we can most effectively use our gifts and passions to make a God-glorifying difference for our entire lives, while at the same time planning financially to retire from full-time paid work earlier than we might prefer.
