A new survey of American workers from Economist Enterprise and Nuveen finds that economic uncertainty is driving a significant shift in retirement expectations, with many individuals delaying retirement, holding onto their current jobs longer, and tapping into retirement savings to stay afloat.
The big picture: The report highlights a growing trend of “job-hugging,” with workers increasingly reluctant to leave their positions amid concerns about job security. Many now expect to retire four or more years later than originally planned, while also postponing major life decisions.
Overall, about six in 10 respondents said they would prioritize long-term job security over higher pay or better benefits. Meanwhile, nearly one-third of workers report halting their job searches in recent years out of fear of sacrificing stability.
Financial pressures are also pushing retirement further out of reach:
- Among those expecting to work beyond their ideal retirement age, only 20 percent cite job satisfaction as the primary reason. Instead, rising living costs (47 percent) and healthcare expenses (41 percent—climbing to 50 percent among low-income workers) are the leading drivers.
- Thirty-five percent of workers say they have taken hardship withdrawals or loans from their retirement accounts at some point. This figure rises to 44 percent in financial services and insurance and 41 percent in manufacturing, compared with 23 percent among government workers.
“The data in this report should give every employer pause,” said Brendan McCarthy, head of Nuveen Retirement Investing. “When workers feel financially insecure, they delay retirement—and that has real administrative and financial costs for organizations carrying expensive, experienced employees who may be ready to move on but don’t believe they can afford to.”
