Thinking about retiring? It might be wise to wait if possible

[UNITED STATES] Navigating retirement amid today’s unpredictable macroeconomic conditions has become increasingly challenging, several older Americans told in recent months. Concerns are mounting over a potential recession, staffing reductions at the Social Security Administration, fluctuating 401(k) balances amid market volatility, and inflation worsened by tariffs.

At the heart of these anxieties lies the erratic and constantly shifting policy landscape under President Donald Trump — a stark contrast to the relatively steady approach of his predecessor. This dynamic has created a particularly tough environment for seniors planning their retirements.

Further complicating matters, recent Federal Reserve reports indicate that interest rates may remain high through 2026, placing additional pressure on retirees living on fixed incomes. Meanwhile, rising housing costs—often the largest expense for seniors—continue to surge in most metro areas, prompting many to rethink where they can afford to settle during retirement.

In response, there are some strategies that those nearing retirement can adopt to protect their savings and investments. Insights from financial advisors, aging researchers, and retirees reveal how people are approaching retirement choices in 2025.

For individuals able to keep working and saving, extending the retirement timeline might be a wise move, said Wes Battle, a Certified Financial Planner with the National Active and Retired Federal Employees Association.

The gig economy has also become an unexpected financial lifeline for retirees seeking flexible income sources. Platforms such as Uber, TaskRabbit, and freelance marketplaces have seen a 20% rise in users over 65 since 2023, according to Pew Research. While these gigs may not replace full-time earnings, they offer retirees a way to supplement income without the demands of traditional employment.

"Many people have never even done the math on what retiring will actually cost or what their income will be," Battle noted. "Simply taking a look at those numbers is a positive first step."

Given current hiring slowdowns and economic uncertainty, Battle suggests that holding onto one’s job a bit longer could be beneficial. And for those who do retire soon, re-entering the workforce remains an option if financial needs change. So-called "unretirements" are on the rise: LinkedIn Economic Graph data shows that about 13% of baby boomers on the platform returned to work in 2023, marking a five-year peak.

On the financial side, Battle has observed a growing number of clients concerned about how today’s economic conditions might erode their retirement funds. Healthcare affordability is also an escalating worry, especially as Medicare premiums rise and out-of-pocket costs for prescriptions and long-term care increase. A 2025 Kaiser Family Foundation report revealed nearly 40% of Medicare beneficiaries spend at least 20% of their income on healthcare—double the rate from 2010.

"Ultimately, the key question is, ‘Am I going to be okay?’ And the answer varies for everyone," Battle said. While market volatility can tempt retirees to alter their 401(k) or investment strategies, Battle advises maintaining a steady course.

Several retirees told they’ve adopted this patient approach, continuing to save through past recessions like 2008 rather than adjusting investments, and now feel confident in their nest eggs. Beyond 401(k)s, Battle recommends individual retirement accounts (IRAs) as a valuable way to build savings—even small, consistent contributions can add up.

Regarding Social Security, Battle advises delaying benefits until full retirement age, typically 67, to maximize monthly payments. Still, many older Americans report that Social Security alone isn’t enough, leading them to work at least part-time to cover expenses.

For those eyeing early retirement, experts warn that claiming Social Security before full retirement age can permanently reduce benefits by up to 30%. However, some financial planners suggest strategic withdrawals from Roth IRAs or taxable accounts to bridge income gaps until higher Social Security payments begin.

Longevity Planning: Beyond Finances

Madonna Harrington Meyer, a sociology professor affiliated with Syracuse University’s Aging Studies Institute, emphasizes that cultivating a robust social life is as critical as financial planning for retirement. She notes that even the most carefully crafted retirement plans can be disrupted by events like divorce, loss of a spouse, unexpected medical bills, or job loss.

"No matter your circumstances, having a strong support network is vital," Harrington Meyer said.

Whether unsure about retiring soon or not, individuals can focus on building community ties—through hobbies, relocating closer to family, or investing in friendships. Part-time work, volunteering, or caregiving can also provide important social connections. These relationships offer a sense of control and stability during uncertain times.

An AARP and University of Michigan survey found that one-third of older adults of all income levels reported feeling lonely at least sometimes in 2024. Harrington Meyer pointed out that economic downturns can exacerbate loneliness, as people are less likely to spend on social activities.

That’s why a holistic retirement approach, sometimes called "longevity planning," is essential. Joseph Coughlin, director of MIT’s AgeLab, described it as planning not just for financial security but also for the "little things that make you smile and improve quality of life."

"Your retirement plan has to include more than just your 401(k) and medical checkups," Coughlin said. Harrington Meyer added that community engagement plays a key role in physical and mental health, especially when economic challenges arise.

"Ask yourself, ‘What matters most to me?’ and then try to build your retirement around those priorities," she advised.