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Americans redefining retirement, as flexibility replaces tradition

Today’s retirees are exploring all their options, a study shows

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Mark Huffman
Reporter

Mark Huffman has covered consumer issues since 2004, with a special focus on protecting and empowering older adults. A former news correspondent for the Associated Press Radio Network, Westwood One, and ConsumerAffairs, Mark brings decades of journalistic experience to RetirementLiving.com. He is passionate about giving consumers a voice and helping them make informed decisions. Mark has also created educational content, including Senior Scam Alert, a video resource designed to help seniors recognize and avoid fraud. He holds a B.A. from the University of Kentucky and lives with his family in Richmond, Virginia.
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Key Insights

  • 72% of Americans expect to retire on their own terms, reflecting rising confidence.
  • Nontraditional retirement paths — like gig work, consulting, and phased retirement — are becoming mainstream.
  • Nearly three-quarters of Americans now say they have a retirement plan in place.

A growing number of Americans are rethinking what retirement looks like, with most expecting to shape the experience on their own terms rather than follow a traditional stop-working model. That’s the conclusion of a new study from Fidelity Investments.

The firm’s 2026 State of Retirement Planning Study found that 72% of Americans believe they will retire on their own terms, a five-percentage-point increase from last year, suggesting rising confidence about the future. 

That optimism is being fueled in part by stronger planning habits. Nearly three in four respondents — 74% — said they have a strategy in place to reach their retirement goals, underscoring a growing emphasis on preparation even as economic pressures persist. But the biggest shift may be how Americans define retirement itself.

A ‘new playbook’ emerges

Rather than viewing retirement as a single endpoint, many Americans are embracing what Fidelity describes as a “new retirement playbook” — one that treats retirement as a flexible, evolving stage of life.

Nearly seven in 10 respondents said they are considering a nontraditional approach to retirement, with many planning to remain active in some capacity. 

About 61% expect to transition gradually into retirement instead of stopping work abruptly. 

Popular alternatives include:

  • Gig work or side hustles (35%)
  • Starting a small business (29%)
  • Consulting part-time (26%)
  • Switching careers or industries (20%)

These approaches reflect both financial realities — such as inflation and rising living costs — and a desire for continued purpose and engagement.

“Retirement is being reframed; it’s no longer a single date,” said Rita Assaf, vice president of retirement offerings at Fidelity.

Confidence rises, but challenges remain

Despite the upbeat outlook, the study suggests Americans are balancing optimism with caution. Increased focus on short-term savings and financial resilience indicates that many are still navigating economic uncertainty while planning for long-term goals. 

At the same time, the shift toward flexible retirement highlights a broader cultural change: retirement is increasingly seen less as an endpoint and more as a customizable phase of life.

For many Americans, that means working longer — but on their own terms.