The first factor that is driving pre-retirees to push back their retirement plans is financial insecurity. With rising healthcare costs, inflation, and uncertain economic conditions, many individuals are worried about outliving their savings. According to a survey by the Employee Benefit Research Institute (EBRI), only 42% of American workers feel confident that they will have enough money to live comfortably in retirement. This fear of not having enough money to sustain their lifestyle is prompting many pre-retirees to stay in the workforce longer.

A second reason for delaying retirement is the desire to maintain an active and fulfilling lifestyle. Retirement used to be synonymous with old age and slowing down. However, with advancements in healthcare and increased awareness about healthy living, people are living longer and staying healthier well into their golden years. As a result, many pre-retirees are opting to continue working because they enjoy their jobs, want to pursue new career opportunities, and enjoy the stimulation they get from working. Moreover, working past traditional retirement age also has significant financial benefits. By staying employed longer, individuals can continue contributing towards their retirement savings and delay tapping into them as well. This allows them to have a larger nest egg when they do eventually retire. Additionally, delaying Social Security benefits until full retirement age (or even later) can lead to higher monthly payments.