Americans Describe Retiring on Their Own Terms
Americans are reenvisioning their golden years as more place a renewed focus on their retirement goals.
The 2026 State of Retirement Planning Study by Fidelity Investments found that nearly seven in 10 participants are considering a non-traditional approach for retirement, with 72% expecting to retire on their own terms in the future.
Rather than moving on from work to retirement, a greater number of participants expect to transition into retirement, at 61% of survey respondents. Among all respondents, the top alternative to a traditional retirement includes gig work and side hustles (35%), starting a small business (29%), consulting part-time (26%), and switching industries altogether (20%).
This is especially prevalent for Gen Z and Millennial workers, who were likelier than any other generation to plan on gradually moving into retirement.
“Retirement is being reframed, it’s no longer a single date and instead is an adaptable stage in the next chapter,” said Rita Assaf, vice president of retirement offerings at Fidelity Investments. “As Americans lean into this new retirement playbook, the importance of planning becomes even more pronounced. Knowing what a phased or transitional path can look like in your situation—and how to make sure your financial plan such as your withdrawal strategies and health care coverage can work with your emotional plan—can be a differentiator in achieving the retirement you envision.”
Americans are moving away from traditional avenues of retirement as more grapple with another year of economic uncertainty. For example, survey respondents listed dealing with inflation (36%), paying monthly bills (35%), and paying for emergency expenses (72%) as among the top concerns in their day-to-day lives.
Others want to continue working to stay active and engaged (34%) or to continue building wealth (19%).
The setbacks that Americans are experiencing haven’t stopped them from saving for retirement. According to recent Fidelity data, Americans continue to contribute about $9,000 on average annually to their 401(k), and 88% have received an employer contribution. More than half (51%) of respondents also describe the rising cost of living as a competing priority to saving for retirement, while 28% note that paying off personal debt is a conflicting challenge, and 81% agree healthcare costs have remained a top concern.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.