As life expectancy rises and concerns about finances during retirement grow, many Americans are leaning towards one solution: extending their working years.

About 70% of those currently employed and not yet retired are contemplating postponing their retirement, according to recent surveys by F&G. Nearly half of the 2,000 adults surveyed expressed worries about having insufficient funds to retire comfortably.

Some are taking more decisive actions. “Two in ten workers modified their intended retirement age in 2024,” noted recent findings from the Employee Benefits Institute, stating that most of these individuals plan to retire later.

However, experts caution that the intention to work longer may not be as dependable as people hope.

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According to projections for 2024, around 58% of workers are expected to retire earlier than they originally planned, as indicated by a study from the Transamerica Center for Retirement Studies. Among those retiring early, 46% did so due to health issues, while 43% faced employment challenges. Only 21% cited financial difficulties as their primary reason for leaving early.

“The 2008 recession shattered assumptions that one could work longer for financial stability,” remarked Teresa Guilarducci, an economics professor at The New School for Social Research. “People in their 50s found themselves pushed out of jobs or losing career positions, leading many to tap into their savings far earlier than anticipated.”

“It’s complicated. Age discrimination exists, and the labor market may not always have room for the skills workers have developed over decades,” she added.

Experts understand why many would want to stretch their working years.

Life expectancy has markedly increased in developed nations over recent decades, per data analyzed by the Federal Reserve Bank of St. Louis, with the burden of saving for retirement now resting mostly on individuals.

Historically, the American retirement framework relied on what economists describe as a three-legged stool: Social Security, employer pensions, and personal savings.

But one leg—Social Security—is facing funding challenges, leaving many workers uncertain about future benefits.

The pension leg has also weakened significantly for private-sector employees. In 1989, 63% of full-time workers at larger companies had pension plans, according to the Bureau of Labor Statistics. By early 2023, that figure plummeted to around 15% of private industry workers.

Workers now largely depend on 401(k) plans and similar options, which require them to be proactive about their savings and investments.

Some younger employees are rising to meet these challenges. Typically, workers today under 30 often have more saved for retirement than the previous generation, per Federal Reserve research.

“At Mercer, we take pride in being global leaders in pension consulting,” said Christine Mahoney. “If younger workers are saving for their futures, perhaps that’s a good sign, despite their apprehensions.”

Yet, personal savings alone may not suffice. Unexpected healthcare expenses, market downturns, or job loss can quickly derail financial plans, leading to what experts refer to as 401(k) “leakage.” The burden of student loan debt further complicates matters for many workers.

Some policymakers and economists argue that lengthening careers might help close the retirement savings gap.

“There are now more diverse work options available than in the past, and many Americans are making use of them,” remarked Andrew Biggs, a senior fellow at the American Enterprise Institute.

Data indicate a 33.2% increase in the number of employed Americans aged 65 and older between 2015 and 2024, as analyzed by CNBC using BLS statistics.

Biggs highlighted that older workers still bring valuable skills to the workforce. “There is significant demand for their expertise,” he noted.

However, others contend that this viewpoint doesn’t always align with real-world labor market conditions.

“The labor market doesn’t necessarily welcome you when you want to work,” Guilarducci stated. “Employer demand greatly influences job availability and the quality of work opportunities.”