Retiring at 70? Why Older Workers Aren’t Clocking Out Yet

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An increasing number of Americans are considering delaying retirement until the age of 70, as changes to Social Security and Medicare continue to impact retirement planning.

Recent data released by the Employee Benefit Research Institute (EBRI) reveals that a growing percentage of workers now anticipate retiring at age 70 or later. In 2023, 15% of workers planned to retire after 70, a number that has since increased to 20%.

Although the median retirement age remains at 62, 2 out of 10 workers have adjusted their expected retirement age in 2024.

Given longer life expectancies, evolving perspectives on work, and economic uncertainties, retiring at 70 is increasingly viewed as a practical choice rather than an outlier.

The current landscape of government programs for retirees, including Social Security and Medicare, is contributing to concerns and prompting individuals to reassess their retirement plans. Projections indicate that Social Security’s trust funds may be depleted by 2035, potentially leading to benefit reductions without legislative intervention.

Moreover, apprehensions about potential cuts to Medicare resulting from the Trump administration’s budget reductions, spearheaded by the Department of Government Efficiency (DOGE), are adding to retirees’ worries. The Department of Health and Human Services, which oversees Medicare among other agencies, recently downsized its workforce and announced plans for organizational restructuring.

Craig Copeland, the director of wealth benefits research at EBRI, highlighted the prevalent concerns regarding Social Security, noting that almost all retirees rely on it as a source of retirement income.

A significant portion of workers (nearly 80%) express apprehensions about possible changes to the retirement system by the government. Specifically, confidence levels in the future sustainability of Social Security and Medicare benefits are at 51% and 53%, respectively.

Aside from governmental uncertainties, older workers are also facing challenges related to market fluctuations, inflation, and rising expenses impacting their retirement savings. A survey conducted by Northwestern Mutual indicates that the perceived retirement fund requirement has decreased to $1.26 million, yet many individuals fear the need to adjust their lifestyle to ensure a comfortable retirement.