One third of retirement savers expect to keep working, T. Rowe Price finds

Another survey is backing up the changing shape of retirement as financial requirement and lifestyle preferences converge.

The global survey from T. Rowe Price suggests the traditional concept of retirement including stepping away from work for good is rapidly shifting, not just in the United State but internationally with about 34% of savers expecting to continue working after they retire, whether by choice or necessity. The US stands out with an above-average 37% of savers anticipating having a job during retirement years.

Economic concerns loom large in shaping those expectations with around half of respondents believing that a recession is likely within the next 18 months. Inflation, geopolitical instability, and elevated interest rates were highlighted as the biggest threats to financial security.

Only around a third of savers describe themselves as “excited for retirement” with those who feel more positive tending to have higher incomes, be married, and report stronger progress toward their savings goals.

Just 31% of those surveyed think they’ll be able to match or improve their current lifestyle once they stop working. Meanwhile, 17% fear they could deplete their savings, and only 27% feel prepared to withstand a major financial setback in retirement.

The firm’s report emphasizes that both individuals and the financial industry must adapt to these new expectations.

“Longer life spans, financial uncertainty, and shifting expectations are redefining retirement — transforming it from a fixed destination to an evolving journey that demands new thinking from both savers and the industry,” says retirement strategist Jessica Sclafani.

With many workers planning for extended careers but uncertain about what comes after, advisors and employers may face growing pressure to design strategies that support a more flexible and financially resilient version of retirement.