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Americans preparing for retirement expect to work longer and depend more heavily on their savings than today’s retirees did, according to a new study that highlights a widening gap between retirement expectations and reality.

The TIAA Institute report, produced with Ipsos, found that current retirees left the workforce at an average age of 57. People who have not yet retired expect to do so at an average age of 62.

Even that five-year difference may understate how long people ultimately remain on the job. 

Among respondents who expect to retire, 52% said they are likely to delay retirement and work longer than planned. The percentage was nearly identical across generations.

Meanwhile, one in four non-retirees said they do not expect to retire at all.

That contrasts sharply with the experience of current retirees. About half retired earlier than expected, 42% retired when planned, and just 6% retired later.

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Retirees’ biggest regrets

The research suggests that current retirees’ experiences offer important lessons for younger workers.

Fifty-three percent of retirees regret not beginning to save sooner, while 52% regret not saving enough. Thirty-seven percent said they underestimated the effect of health problems, job losses, caregiving responsibilities, or other major life events.

Another 37% underestimated healthcare and long-term care costs, and 35% regretted not having a retirement plan with specific goals.

For workers, the most widely cited milestone before retirement was having enough money to cover an emergency, selected by 62%. Other goals included paying off non-mortgage debt, securing adequate health coverage, and reaching a specific savings target.

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Career interruptions can take a toll

Retirement planning often assumes a fairly steady working life, but the study found that career disruptions are common. Fifty-one percent of adults ages 22 to 75 have left the workforce for more than a year.

The most common reasons included caring for children, changing careers, layoffs, burnout, moving, and health problems. Extended absences were even more common among parents and caregivers.

Job changes present another risk. Seventy-seven percent of respondents had changed employers at least once, averaging 4.2 employer changes during their adult careers. One in four had left a job before becoming fully vested in a retirement plan, potentially forfeiting employer contributions. One in five had cashed out retirement savings during a job change.

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Retirement income is changing

Future retirees expect to rely more heavily on their own savings. Seventy-seven percent expect to use money held in a 401(k), 403(b), IRA, or similar account, compared with 45% of current retirees.

Future retirees are also more likely to expect income from savings outside retirement accounts and paid employment. By contrast, current retirees are more likely to receive employer or union pensions.

Expectations for Social Security vary widely by generation. While 94% of baby boomers planning to retire expect it to provide income, that figure falls to 75% among Gen X, 64% among millennials, and 51% among Gen Z.

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Advice appears to improve confidence

Only 24% of adults surveyed currently work with a financial professional. However, those receiving professional guidance were nearly twice as likely to associate retirement planning with feeling secure, confident, or excited.

Retirees with an advisor also reported fewer regrets. For example, 43% of those with an advisor regretted not saving enough, compared with 58% of retirees without one.

Digital tools could expand access to guidance. Four in 10 respondents said they were open to using artificial intelligence for money management and future planning. Interest was highest among millennials, at 49%.