Redefining Retirement: Financial Pressures and AI Anxiety

Rethinking Retirement: Why More Workers Are Redefining Life After Career

Retirement looks fundamentally different than it did for previous generations. Financial strain and uncertainty about artificial intelligence are prompting workers across all age groups to reconsider what the traditional retirement timeline should look like—and many are discovering that stepping away from work entirely may no longer be the goal.

While Baby Boomers are outnumbered by Gen Z workers and are leaving the workforce in large numbers, a significant portion of that generation is choosing to stay engaged. Even with retirement within reach, the reality of what comes next is shifting. The idea of a permanent, work-free retirement is being replaced by a more flexible vision that blends leisure, purpose, and continued professional contribution.

What the Data Shows About Retirement Confidence

Recent findings from Thrivent reveal a notable gap between traditional retirement expectations and current worker sentiment. According to the data, 47% of current non-retirees are unsure they will ever be able to retire fully. Meanwhile, more than one-third of workers anticipate continuing to work in some capacity after leaving their primary career.

Artificial intelligence is adding a new layer of concern to retirement planning. Workers across every generation expressed worry about how AI could negatively affect their long-term financial and career plans:

• 63% of Gen Z workers are concerned about AI's impact on retirement
• 59% of Millennials share that concern
• 49% of Gen X workers feel the same way
• 49% of Boomers also worry about AI's effect on their plans

Jason Rogoff, a financial advisor at Thrivent, notes that these worries are not unfounded. “Everyone’s experience with AI is unique, and there’s a significant amount of uncertainty about its long-term impacts,” he says. “That uncertainty may feel more acute for younger workers because they have more earning years ahead of them and more time for technological change to affect their careers.”

Rogoff adds that the concerns go beyond simple job security. “Their concerns likely extend beyond job security alone and could include questions about future income growth, career opportunities and how AI could reshape the nature of work over time.”

With 72% of Baby Boomers now delaying retirement past age 65, the traditional endpoint of a career seems further away than ever. Yet for many, this extended timeline is not a setback—it is an opportunity to redefine what retirement actually means.

The Financial Pressure Behind Delayed Retirement

The most significant factor driving older workers to postpone retirement is financial. Rising costs and ongoing economic uncertainty have made the prospect of leaving the workforce feel increasingly out of reach for many households.

“Financial pressures, like rising costs and economic uncertainty, are making traditional retirement feel less attainable,” Rogoff confirms. This challenge is especially pronounced for the 64% of non-retirees who say they are more focused on their current finances than on retirement planning. Day-to-day expenses and immediate financial stability take priority over long-term savings goals.

The economic outlook for many Baby Boomers is particularly challenging. Consider these key figures:

• More than half of Boomers hold less than $250,000 in total assets
• 27% of Americans aged 59 and older have no retirement savings at all, according to Credit Karma
• Housely projects that by 2030, most Peak 65 Boomers will struggle to maintain their current lifestyle standards once they retire

These numbers paint a difficult picture for those who feel forced to keep working out of necessity. However, for some, continuing to work is not purely about financial survival.

“For some, continuing to work is about income, but for many others it’s about staying engaged, maintaining a sense of purpose and staying mentally active,” says Rogoff. “As a result, retirement is increasingly becoming a transition into a different phase of life and work rather than a fixed endpoint.”

This shift in perspective suggests that the future of retirement is not about stopping work altogether. Instead, it is about finding a sustainable balance that supports financial security while preserving the mental and social benefits that work provides. For workers of every generation, the path forward involves redefining success in retirement—not as an ending, but as an evolution.

Retirement: No Longer the Finish Line

If retirement is no longer viewed as a finish line, what should take its place as the shared goal that employees and employers plan toward together? According to Rogoff, retirement should be reimagined as one distinct stage within a broader financial and life plan, rather than the singular objective of a working career.

“A retirement date is an important marker, but it does not define what life may look like afterward,” he says. “Individuals should consider their desired lifestyle, sources of purpose, work preferences and income needs to determine what this period should look like for them.”

The employer’s role in this new framework is to support that planning process. This means helping employees understand their benefits, transition options, and available resources, while also recognizing that a successful retirement will look different for every person. A one-size-fits-all approach is no longer sufficient.

Importantly, these conversations should not be reserved for those nearing the end of their careers. Engaging younger-generation workers early about their retirement options sends a clear signal that the organization is invested in their long-term well-being. Proactive communication with all age groups helps build a culture of financial wellness that benefits both the employee and the employer over time.

Building Flexible Retirements

With roughly one-third of the workforce planning to continue working in some capacity after their primary career ends, employers should be building greater flexibility into their organizational structure. “Practically, that may mean creating more flexible pathways between full-time work and retirement, rather than treating retirement as a single end date,” says Rogoff.

“Employees may be preparing for full retirement, part-time work or another opportunity, so they need to understand how each path could affect their financial situation.”

Every worker’s circumstances are unique, but Rogoff emphasizes that employers can make a meaningful difference by providing clear, accessible information about benefits, health coverage, and retirement options well in advance of an employee’s final weeks on the job. Waiting until the last minute limits the employee’s ability to make informed decisions.

Unfortunately, this level of support may not be happening as frequently as it should. “While we don't know exactly how often these conversations are happening, only 12% of respondents say they used their employer or HR team for retirement-planning information in the past year,” says Rogoff.

“Six in ten consider them a trustworthy source, which may represent an opportunity for more proactive communication on their benefits and transition options. Financial advisors can then help employees apply that information to their own goals, values and financial circumstances.”

This gap between trust and usage suggests a significant opportunity. Employers who step up to provide timely, relevant retirement information can position themselves as valuable partners in their employees’ long-term financial success, bridging the divide between general trust and practical application.

Phased exits and part-time options

For many older employees, the concept of retirement is no longer an abrupt stop but a gradual transition. According to Rogoff, part-time work is the most commonly anticipated arrangement among those who expect to work in retirement. He advises that companies considering a phased-exit program should establish a clear and consistent framework that allows employees to scale down their responsibilities progressively. This could take the form of reduced schedules, project-based roles, consulting arrangements, or a structured transfer of duties over time.

Establishing eligibility standards and timelines is another critical step that organizations should address now. Rogoff emphasizes that companies need to clearly explain how participation in such programs affects compensation and benefits. Furthermore, they must incorporate knowledge transfer and succession planning into the process to ensure operational continuity.

The overarching objective, as Rogoff puts it, is to make the transition predictable for both the employee and the organization. This approach treats retirement not as a single departure date but as a managed evolution, which can reduce uncertainty and preserve institutional stability.

However, it is equally important for leaders to avoid making broad assumptions about what their older workforce desires. Rogoff points out a common misconception: that all older workers want the same type of support or are following the same timeline. In reality, some individuals may be preparing to exit their primary career completely, while others may wish to reduce their hours, shift into a different role, or remain involved in a limited capacity. For leaders, the opportunity lies in avoiding these assumptions and instead creating space for open conversations about what employees envision for their next chapter.

Planning the future together

Even the most carefully considered plans can change, and for many, retirement plans are still undefined. Research from Thrivent indicates that 42% of respondents are unsure whether they will work for pay after leaving their primary career. While this uncertainty might seem daunting, Rogoff suggests it does not have to lead to inaction.

Even if you are unsure whether you will be able to—or want to—fully retire, there are proactive steps you can take now to preserve your options. Rogoff recommends preparing for multiple outcomes by continuing to save, maintaining an emergency fund, and reviewing your financial plans regularly. He notes that even small, consistent steps can create greater flexibility. A strong retirement plan is not necessarily designed to predict the future; rather, it is structured to give you options as your work situation, finances, and priorities evolve.

For companies, the focus should be on stewarding the institutional knowledge and experience of older-generation workers wisely. Normalizing conversations about flexible retirement is a valuable first step. This should be complemented by providing clear information well in advance—not just weeks, but years before retirement becomes a consideration. Organizations that adopt this forward-thinking approach may find themselves retaining valuable talent for longer. In doing so, they create more opportunities for experienced employees to pass on their knowledge to the next generations who are stepping into the breach.