A recent survey reveals a significant gap between the number of American workers who expect to continue working after retirement and the proportion who actually do so. The 2026 Retirement Confidence Survey, conducted by the Employee Benefit Research Institute (EBRI), found that approximately 75% of employees plan to work for pay following retirement. However, just 31% of retirees report being employed, a figure that has remained consistent in similar surveys since 1999.

Experts attribute this discrepancy to common misunderstandings about retirement and the challenges of remaining in or reentering the workforce at an older age. Many workers envision a gradual transition to retirement, such as reducing hours, working part-time, or continuing as consultants. In practice, retirement often comes suddenly, prompted by health issues or job cuts, and returning to paid employment can be difficult. “People do expect to gradually transition by reducing hours, but what ends up happening is they end up stopping completely,” said Craig Copeland, director of wealth benefits research at EBRI. He pointed out that older retirees frequently face challenges securing new employment, which is often necessary to work after retirement.

The desire to work during retirement is largely driven by financial concerns. Nearly 40% of American workers lack confidence in their financial preparedness for retirement, which has been declining in recent years amid inflation and economic uncertainty. Paid work ranks as the fourth most expected source of retirement income, following Social Security and workplace and personal savings. Yet only 27% of current retirees report income from employment.

Part-time job opportunities, which could facilitate continued work, remain relatively scarce, complicating retirees’ efforts to shift gradually from full-time work. Maura Porcelli, senior director of workforce at the National Council on Aging, emphasized difficulties older individuals face when seeking reemployment.

Additional surveys echo these findings. A report by the Transamerica Center for Retirement Studies noted that 48% of workers approaching retirement plan to work after retiring, while 32% do not, and 19% remain uncertain. Catherine Collinson, CEO of the Transamerica Center, explained that unforeseen life events, such as health problems or family responsibilities, often make continued work impractical. She also highlighted ambiguities in how individuals identify as retired when they may take temporary retirement before returning to full-time work.

Retirees who do remain in or return to the labor force cite a variety of motivations, including maintaining engagement, delaying Social Security benefits, preserving savings, or supplementing income. AARP reported that 7% of retirees had recently reentered employment, mostly due to financial necessity. Carly Roszkowski, vice president of financial resilience programming at AARP, said economic pressures such as rising costs of living are prompting more retirees to work out of need rather than choice.

The survey underscores the complexity of retirement planning in the United States and highlights a persistent gap between expectations and reality for older workers navigating the transition from employment to retirement.