Retirement envy: Why young Americans doubt matching their parents' later years

Millions of working age Americans have seen previous generations reach retirement and enjoy a more leisurely pace of life doing the things they enjoy, while seemingly having few financial concerns.

While that has never been the case for every retiree, the chances of younger generations achieving it appear to be fading, at least in their own minds. Unsurprisingly, retirement anxiety is rising among future retirees.

Retiring comfortably seems beyond the reach of many according to the newly released Retirement Expectations Survey from Thrivent which highlights how external pressures are reshaping people’s financial outlook.

Around four in ten non-retirees believe they’ll be less financially secure than their parents, and the same share admit to feeling uneasy when they think about their own retirement. Nearly half (44%) doubt they are saving enough to stop working when they originally planned and roughly one in three think it’s unlikely they’ll ever fully retire.

Doubts about ever fully retiring are elevated among Gen Zs (37%) and Millennials (39%) but more than a third of all respondents expect to work for pay after leaving their primary careers. However, this is not all about money, with many citing the need to stay mentally engaged (51%) or avoid boredom (50%).

But respondents are concerned about technology impacting work with 53% fearing that artificial intelligence will limit job opportunities and 45% believing it could reshape work in ways that jeopardize their retirement goals.

Economic turbulence is also forcing real-time adjustments, with a third of respondents – both retirees and non-retirees – saying that they have changed their retirement strategies in the last year due to economic pressures. Most cut back on discretionary spending (73%), while others delayed major purchases (49%) or canceled memberships and subscriptions (45%).

Inflation looms large, with 76% of non-retirees predicting it will hurt their retirement outlook. Another 64% cite uncertainty around Social Security, and 62% worry global economic shifts could derail their future plans.

Among those already working with a financial advisor, 89% say the relationship plays a critical role in reaching their goals, but only 22% of survey participants report currently working with one.