The Society of Actuaries Research Institute released its biennial Retirement Risk Survey on Tuesday, revealing that a majority of U.S. retirees left the workforce earlier than anticipated, while pre-retirees face growing financial pressure from inflation, unexpected emergencies and caregiving duties.
The survey, which polled Americans aged 45 to 80 across income levels, found that 59% of retirees stopped working sooner than planned, compared with just 6% who delayed retirement. Among lower-income respondents, deteriorating health was the primary reason for early exit.
Nearly three in 10 pre-retirees reported experiencing a family emergency that forced them to withdraw at least 10% of their savings, a sharp increase from the prior survey period. Inflation continues to weigh heavily on day-to-day finances and long-term planning for this group, according to the findings.
Caregiving responsibilities emerged as a significant concern: 35% of pre-retirees and 29% of retirees believe it is somewhat or very likely they will need caregiving support in the future. However, nearly half of those respondents have not taken steps to prepare for those needs.
Meanwhile, about one-third of pre-retirees are providing financial assistance to adult children, and nearly 20% support parents or in-laws. These commitments may limit their ability to save for retirement, the survey suggests.
“Retirement risk is shaped by both life events and long-term planning,” said Steve Siegel, ASA, senior practice research actuary at the Society of Actuaries. “A financial shock, caregiving need or sustained cost pressure can reshape someone's financial security—and is why retirement planning should account for the unexpected, not just best-case scenarios.”
The Retirement Risk Survey, part of the SOA’s Aging and Retirement Strategic Research Program, has been conducted for more than two decades. The organization aims to improve retirement planning strategies and better understand the financial risks facing retirees and workers approaching retirement.
For advisors, the findings underscore the importance of stress-testing portfolios against inflation and incorporating long-term care contingencies. Similar themes emerged in a recent Gallup and Ameriprise survey that revealed persistent retirement anxiety despite short-term confidence. Additionally, a Northwestern Mutual and Guardian survey highlighted a gap between financial optimism and actual retirement readiness.
