Workers Delay Retirement Amid Financial Uncertainty, Surveys Show

The current economic backdrop for retirement savers may seem dark, with the rising cost of living and persistent inflation. According to the third and final wave of Principal’s Financial Well-Being Index, nearly 69% of employers reported their employees delaying retirement because of financial security concerns. 

“This is an important opportunity to help employers broaden the conversation beyond retirement education alone,” wrote Teresa Hassara, senior vice president of workplace savings and retirement solutions at Principal, in an email to PLANADVISER . 

When employers were asked about benefit-related reasons their workers were delaying retirement, 71% cited rising cost of living and inflation concerns, 69% pointed to access to affordable health insurance, and 68% cited insufficient retirement savings. Principal’s index is based on a survey conducted from June 22 through July 13 of 1,000 employers with between 2 and 10,000 employees. 

For plan advisers, the findings suggest participants may need additional financial education and planning support as they navigate inflation and retirement savings concerns. 

“When employees feel more confident managing today’s financial pressures, they are better positioned to stay engaged with their long-term goals. Advisers can help make that connection clear for employers and help deliver solutions that meet employees where they are,” said Hassara. 

The financial uncertainty among retirement savers was also echoed in a separate PNC Pulse Survey of PNC Financial Services Group Inc.’s client defined contribution plan participants. Asked whether rising costs had affected their retirement plan contributions, 30% of responding participants agreed and 22% strongly agreed. 

PNC also asked whether participants planned to seek financial guidance to navigate current financial conditions. Sixteen percent agreed and 8% strongly agreed, while 38% remained neutral and the other 38% disagreed. 

The PNC report stated that participants showed interest in answering household budgeting questions: “[Participants] are asking our educators whether they should increase plan contributions, pay down debt first or hold additional cash given ongoing uncertainty,” the report stated.  

“Employees need practical, personalized support that reflects their full financial picture, including budgeting, emergency savings, debt management, healthcare costs and retirement planning,” said Hassara. 

Despite ongoing economic uncertainty, a separate survey from Santander Holdings USA Inc. found many Americans taking steps to manage rising costs. 

According to Santander’s U.S. Paths to Financial Prosperity Q2 2026 survey, 83% of respondents said they believed they would find a way to manage rising costs, and 92% reported taking some action in response to inflation. 

Additionally, 67% reported receiving a tax refund, with many using it to support or cover their everyday expenses.  

Morning Consult conducted Santander’s survey of 2,199 U.S. adults aged 18 through 76 who were bank or financial services customers.