- Economic-slowdown concerns are prompting Americans to rethink their retirement plans.
- Financial advisors and researchers advise older adults to keep their jobs if they can and delay taking Social Security.
- This is the final installment in BI's six-part series on making major life decisions during this period of massive change.
An uncertain macro environment makes now a difficult time to make major retirement decisions. Dozens of older Americans have confirmed that to Business Insider in recent months.
They're worried about a possible recession, staff cuts at the Social Security Administration, their 401(k)s amid market volatility, and ongoing inflation exacerbated by tariffs.
The primary drivers of these concerns — the unpredictable and ever-fluctuating policy initiatives of President Donald Trump — are a far cry from the comparatively placid approach of his predecessor. It's created a difficult set of circumstances for older Americans.
We're looking at the steps people at or near retirement age can take to safeguard their nest eggs and investments. Detailed below is what financial advisors, researchers on aging, and retirees told us about making major choices about retirement in 2025.
Delay retirement if you can
For those with the ability to continue working and saving, now may be a good time to extend their retirement timeline, according to Wes Battle, a certified financial planner at the National Active and Retired Federal Employees Association.
BI has spoken to older Americans who are doing just that: choosing to delay retirement by a few years or return to part-time work.
"Many people have never even calculated what it would cost to retire and what their retirement income would be," Battle said. "Just looking at these things is a step in the right direction."
Because of a hiring slowdown and economic uncertainty, it may be best to hang on to your job a little longer, if you have one, Battle said.
And if you do decide to retire soon, you can try to go back to work if your financial needs change. Unretirements are increasingly common: LinkedIn Economic Graph reported that about 13% of baby boomers on the platform returned to the workforce in 2023 — a five-year high.
Consider holding off on adjusting investments, and taking Social Security
On the finances front, Battle says he's seen a recent increase in clients who are worried that current economic conditions will hurt their retirement nest eggs.
"That's the crux of all of this: "Am I going to be OK? And that could be different for everybody," he said.
While it can be tempting to make changes to your 401(k) or investment portfolio in times of volatility, Battle advises riding out the market.
BI has heard from retirees who swear by this hands-off approach. Some said they continued to save through 2008 and other past recessions — instead of adjusting investment strategies — and now feel secure in their retirement assets.
Besides 401(k)s, Battle said IRA accounts can also be a great way to build savings, even if you can only afford to save small amounts at a time.
As for Social Security, Battle said that it's best to delay claiming benefits until you reach full retirement age, which is typically 67, and can receive a higher monthly check. Still, many of older Americans have told BI that relying on Social Security as their primary source of income is not enough and they still need to work, at least part time, to pay their bills.
Make sure your 'longevity planning' goes beyond finances
Madonna Harrington Meyer, a sociology professor who works with Syracuse University's Aging Studies Institute, said that cultivating a healthy social life is just as important as saving money when it comes to retirement planning. That's because even the best-laid retirement plans can be derailed by a divorce, the loss of a spouse, medical bills, job loss, or other unexpected expenses. Whatever your life circumstances, a strong support system in retirement is crucial.
So even if you aren't sure if you can retire, you can work on your community, which might involve pursuing hobbies, moving to live near family, and investing in friendships. Harrington Meyer said that continuing to work part-time, volunteer, or care for grandchildren can also offer social outlets. Working on your relationships can also give you a sense of agency, which is valuable in uncertain times.
A December report from AARP and the University of Michigan found that a third of older adults of all income levels reported feeling lonely sometimes or often in 2024. Harrington Meyer said loneliness can worsen during economic downturns because people are less likely to spend on social outings.
That's why holistic retirement strategy, or what Joseph Coughlin, director of the Massachusetts Institute of Technology AgeLab, calls "longevity planning," is so important.
"Yes, it's about how much money you've saved — but it's also about all those other little things that make you smile and contribute to quality of life," he previously told BI. "That has to be planned as much as your 401(k) or whether you've had your annual checkup."
Harrington Meyer said that community is a key part of physical and mental health, especially during an economic downturn.
"What's going to be most important to you?" she said. "And then try to build your retirement around that."
Do you have a story to share about retirement? Reach out to this reporter via email at [email protected] or on Signal at alliekelly.10
