Hitting the Pause Button: Peak 65 Consumers Delay Retirement, Change Investment Strategies and Harbor Social Security Fears

WASHINGTON, July 9, 2025 /PRNewswire/ -- Due to financial market volatility, persistent inflation, and increased concerns about the viability of Social Security, one-third (30%) of consumers ages 61 to 65 are considering delaying retirement, while 58% of consumers ages 45 to 75 are concerned their Social Security benefits will be reduced. Two-thirds (65%) of financial advisors are changing their retirement investment advice to clients, with 50% saying they are putting more client investments into annuities, which ranks as the most popular change in investment strategy.

These are among the key findings of the 2025 PROTECTED RETIREMENT INCOME AND PLANNING (PRIP) STUDY, the only annual, nationwide survey of both consumers and financial advisors, conducted this year by IPSOS. The first chapter of the report released today highlights critical insights on the state of retirement and retirement security, as millions of Americans reach the traditional retirement age of 65, a historic milestone that the Alliance identified and has termed Peak 65^®.

"Many of those belonging to the largest wave of retirement age Americans are hitting the pause button," said Jason Fichtner, Executive Director of the Alliance's Retirement Income Institute. "The Peak 65 surge, chaotic changes at the Social Security Administration, and heightened fears over Social Security's future are a trifecta of worries prompting many to claim benefits early."

With retirement concerns and uncertainty rapidly mounting, it's no surprise that over half (54%) of Baby Boomers and Gen-Xers are fearful of outliving their savings in retirement – up from 48% in last year's survey –and an overwhelming 95% of pre-retirees saying protection is important to their retirement plans.

"Just as businesses hesitate to make big moves in times of economic uncertainty, many working Americans are afraid of taking the leap into retirement," said Jean Chatzky, an Education Fellow with the Alliance's Retirement Income Institute and CEO of HerMoney. "With so many looking for greater retirement security, it's no surprise that half of financial advisors now say they're adding protected income from annuities to their client's portfolios."

OTHER KEY FINDINGS

Delays in retirement, high anxiety, and Social Security fears

• 30% of non-retired consumers ages 61 to 65, known as Peak 65 consumers, are contemplating postponing retirement, while financial advisors say 28% of their clients have already delayed retirement.
• 28% of consumers ages 45 to 75 are contemplating postponing retirement because of financial concerns. Those lacking a pension or annuity are twice as likely (36%) to do so than those without either source of protected income (17%).
• 58% of consumers ages 45 to 75 are concerned that Social Security benefits will be reduced based on recent actions taken by the administration. 14% are "definitely" considering claiming Social Security earlier than originally planned, while 21% are "somewhat" considering doing so.
• 52% of consumers ages 45 to 75 report less confidence in Social Security compared to five years ago.
• 47% of retirees indicate that spending money in retirement gives them anxiety, while 33% said they are spending money faster in retirement than anticipated.
• 41% of retirees are looking for ways to spend less, and 11% of them are looking for part-time work to supplement their income.
• Of those who started working again after they retired, 51% did so because they wanted or needed the money, while 37% did it for social interaction or mental stimulation.
• 60% of Generation X consumers, those born between 1965 and 1980, believe retiring and never returning to work is still possible, while 68% of Peak 65 consumers feel the same.

Inflation and healthcare costs top economic concerns

• Inflation (67%) and healthcare costs (60%) are overwhelmingly the top concerns of consumers ages 45 to 75 when asked to identify the top financial concerns in retirement. Outliving their savings ranks third (42%).
• Health issues rank highest when asked to identify quality of life concerns in retirement. A major physical health event (67%), becoming physically dependent on others (65%), and experiencing cognitive decline (57%) are chief among these concerns.

Investors turn to annuities for stability in uncertain times

• 65% of financial advisors indicated that they changed their retirement planning approach over the past year to address client concerns about market volatility, inflation and rising interest rates. 
• 50% of financial advisors said they are putting more client investments into annuities, which ranks as the most popular change in investment strategy. Annuity sales in the U.S. have exceeded $100 billion for the sixth consecutive quarter, according to LIMRA. Specifically, first quarter sales in 2025 reached $106.3 billion.
• 35% of financial advisors indicated that they put more assets into U.S. Treasuries, while equities were a mixed bag with 30% investing more into stocks and 30% decreasing their exposure to them.
• In the event of $100,000 windfall, 64% of consumers ages 45 to 75 said they would put the money into an annuity versus the stock market, while 62% of advisers said they would recommend investing in the stock market.

Confidence in retirement correlates with financial planning

• Just 35% of Generation X consumers and 49% of Peak 65 consumers are confident about being able to create a retirement income plan, while 70% of consumers ages 45 to 75 working with a financial advisor are confident.
• Just 34% of consumers ages 45 to 75 they have a detailed retirement plan, while 31% say they have a set of goals or a direction in mind but lack a detailed plan, and 34% say they don't have any kind of plan.
• 61% of consumers ages 45 to 75 believe they are on the right track for a financially secure retirement, but 54% are also fearful of outliving their savings.

About the Study
The Alliance's 2025 PRIP research, which was conducted by IPSOS, is the only study of its kind that surveys consumers and financial professionals with similar questions simultaneously. The study surveyed 3,502 consumers aged 45-75, weighted by age, gender, and region to be representative of the national census demographics, with a corollary study of 500 financial professionals.

About The Alliance for Lifetime Income
The Alliance for Lifetime Income (ALI) is a non-profit 501(c)(6) consumer education organization based in Washington, D.C., that educates Americans about the value and importance of having protected income in retirement. Our vision is for a country where no American has to face the prospect of running out of money in retirement. The Alliance provides consumers and financial professionals with unique educational resources, live retirement planning webcast shows, and interactive tools to use in building retirement income strategies and plans. We believe annuities – one of only three sources of protected lifetime income – can be an important part of the solution for retirement security in America. The Alliance's Retirement Income Institute houses the leading retirement scholars and experts who create evidence-based research and analysis, with practical ideas and actions to help protect retirees.

Contact: Suzy Wagner
(703) 899-3427
[email protected]

SOURCE Alliance for Lifetime Income