Retirement has been a hot topic lately as Americans navigate continued economic uncertainty and inflation. Each generation faces different hurdles associated with financial security, so let’s explore 2026 retirement trends and how they can aid each generation.
2026 Retirement Trends
Working Later in Life
Over the past three decades, the average retirement age has risen by about three years. In 1994, the average man worked to age 61, while the typical woman clocked out at 59. The typical retirement age in 2024 was 64 for men, 62 for women. This slow-but-striking trend is happening for a few main reasons: the need for more income, to avoid tapping into Social Security income, a shift from pensions to 401(k) plans, and more. In today’s economy, we add additional complexities: inflation and a volatile market. Working longer and later into life will continue to be a common trend in 2026 as many avoid drawing on retirement too early.
Part-Time Jobs
Another 2026 retirement trend is the rise in acquiring part-time jobs. Working part-time allows retirees to be social and active while also earning extra money. CNBC reports that 64% of Americans worry more about running out of money than they do about dying, and part-time work can be a tool to help retirees require less from their retirement savings.
Staying Steady in an Unsteady Market
Investing has been a roller coaster throughout 2025, and while no one can predict whether that uncertainty will follow us into 2026, one principle remains clear: a diversified, long‑term strategy is your best defense against market swings.
So, what’s the best way to invest? The honest answer: It depends on your goals, risk tolerance, and timeline.
But one guideline holds true no matter what the market is doing—avoid trying to time the market. Attempting to buy the “right” investment at the “perfect” moment often backfires. Instead, stay focused on building a portfolio aligned with your long‑term objectives, not short‑term headlines. Your goals don’t change with every market dip, and your investment approach shouldn’t either.
Reevaluating Retirement by Age
Millennial (Ages 28–46)
Millennials face a big challenge when it comes to freeing up income for investing: debt. Money Management International, a debt-counseling nonprofit, reports that their average millennial client now carries $30,000 in unsecured debt, including credit card debt. Investing some time into debt payoff methods could help get the ball rolling on investment opportunities. Using part-time jobs or side hustles to help knock out debt quickly could also help open up income for retirement.
Generation X (Ages 47–58)
Generation X struggles with feeling like they are on track for retirement, CNBC reports. Overall, 69% of Gen X workers said they were behind on their retirement savings, including 47% who said they were “significantly behind”—more than any other generation. Gen X should prioritize rebuilding their retirement security by boosting personal savings, since they face fewer traditional safety nets like pensions and have fallen behind other generations in preparedness. They can strengthen their outlook by maximizing 401(k) and other savings strategies—and talking with a financial professional to create a realistic path forward.
Baby Boomer (Ages 59–77)
Although inflation continues to create challenges for investors, 2026 also brings meaningful opportunities. The IRS has increased 401(k) contribution limits to $24,500 and IRA limits to $7,500, along with enhanced catch‑up options for those age 50 and older.
Baby Boomers preparing for retirement may want to take advantage of these higher limits to maximize their savings and strengthen their long‑term financial security.
Want more? Check out our blog, The Overlooked Costs of Retirement: What Many People Forget to Plan For
Bankers Life Can Help
Having a financial professional in your corner during uncertain economic times can only make your investment portfolio stronger. Bankers Life can help guide you through retirement and investment options. Call us at (844) 553-9083 or click here to get started.
Insurers and their representatives are not permitted by law to offer tax or legal advice. The general and educational information here supports the sales, marketing or service of insurance policies. Based upon individuals’ particular circumstances and objectives, they should seek specific advice from their own qualified and duly-licensed independent tax or legal advisors.
