Fidelity: ‘Retirement Age’ No Longer Integral to Late-Career Plans

Working no longer has a clear expiration date, according to respondents in Fidelity Investments’ newly published “2026 State of Retirement Planning.” Instead of viewing retirement as a single, fixed milestone, many pre-retirees reported redefining it as a gradual transition shaped by affordability concerns, lifestyle goals and a desire to stay active and socially engaged.

Fidelity’s study found that 72% of responding pre-retirees expected to retire on their own terms, up 5 percentage points from last year. Many pre-retirees expected work to continue playing a role later in life, but in different forms. According to the study, 61% said they intended to transition into retirement, with the top alternatives including gig work and side hustles (35%), starting a small business (29%), consulting part-time (26%) or switching industries altogether (20%).

“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, in a statement.

Respondents from younger generations were particularly open to alternative paths, compared with older generations. Among Generation Z respondents, 45% said they would consider starting a business or pursuing self-employment in retirement, compared with just 4% of Baby Boomers. Only 10% of Gen Z said they would not consider an alternative path to retirement, versus 70% of Boomers.

Across generations, there were set expectations about how work changes later in life. Overall, 34% of pre-retirees expected to reduce their hours before retiring, 30% expected to take on fewer responsibilities, and 18% expected to move into freelance or contract work. Only 32% anticipated continuing to work as normal until retirement.

Confidence in reaching their idealized version of retirement was more prominent amongst Millennial (78%) and Gen Z (75%) respondents than Boomers (68%) and Gen X (63%).

The retirement sources most preferred by pre-retirees included workplace plans (45%), Social Security (44%) and personal savings (41%), followed by brokerage income (31%), pensions (26%) and individual retirement accounts (26%).

For retirement plan advisers and sponsors, the study presents a shift toward a more fluid retirement model, a shift that may have direct implications for plan communication and strategies. As participants delay or redefine retirement, employers may need to rethink how their plans support flexible work, phased retirement, and income planning throughout longer careers.

The study found that across generations, 74% of surveyed pre-retirees had a plan to reach their retirement goals, and 90% agreed that planning is still necessary, even in retirement.

“As Americans lean into this new retirement playbook, the importance of planning becomes even more pronounced,” Assaf said. “Planning is what turns preference into payoff. With the right plan—built around retirement income, taxes, health care and consolidation—investors can have the tools in their corner to help define a successful retirement journey.”

The online survey gathered responses from 2,015 U.S. adults aged 18 through 79 who had an IRA, 401(k), annuity, pension, health savings account or brokerage account. From December 2, 2025, through December 8, 2025, interviews were conducted by insights company BV Insights LLC, also known as Big Village, which is not affiliated with Fidelity Investments.