Fidelity’s 2026 Retirement Study Shows Shift To Gig Work, Delayed Retirement Amid Inflation

Rising costs of living and debt are pushing many Americans to rethink retirement as a flexible, phased transition, with 72% now expecting to retire on their own terms, according to Fidelity Investments’ 2026 State of Retirement Planning Study.

The study, released last week and conducted annually since 2019, finds the majority of Americans are considering a nontraditional approach to retirement, with 61% planning to transition gradually rather than stop working at a specific age.

The study is based on a national online survey of 2,015 U.S. adults ages 18 to 79, which was conducted independently in December 2025 by Big Village. All respondents share or hold sole responsibility for household investment decisions and have at least one of the following: an IRA, 401(k), annuity, pension, health savings account or brokerage account.

Among all respondents, alternative paths to and through retirement include:

• Gig work or side hustles (35%)
• Starting a small business (29%)
• Part-time consulting (26%)
• Switching industries entirely (20%)

Reshaping housing demand?

Overall optimism is improving as the 72% of respondents who say they expect to retire on their own terms is up from 67% last year. Nearly three-quarters say they have a plan in place to reach their retirement goals, according to the company announcement.

“Retirement is being reframed, it’s no longer a single date and instead is an adaptable stage in the next chapter,” Rita Assaf, vice president of retirement offerings at Fidelity Investments, said in a statement. “As Americans lean into this new retirement playbook, the importance of planning becomes even more pronounced.”

For housing professionals, a longer and more flexible “work-while-retired” phase can reshape housing demand as more clients may postpone downsizing, relocate for gig or consulting work, or prioritize properties that support aging in place while staying economically active.

The findings also underscore the near-term financial strain influencing retirement decisions. Top money concerns include:

• Dealing with inflation (36%)
• Paying monthly bills (35%)
• Covering an emergency expense (27%)

More than half of respondents (51%) say the rising cost of living competes with saving for retirement, and 28% cite paying off personal debt as a major obstacle. Health care weighs heavily as well, with 81% believing that retirement-related health care costs will be high. Fidelity’s Retiree Health Care Cost Estimate pegs costs at about $172,500 for an individual.

Among those who say they never plan to retire, 52% report they do not expect to be able to afford to fully stop working. Others intend to work longer to stay active and engaged (34%), because they want to keep working (25%), or to continue building wealth (19%).

In the mortgage and real estate markets, extended working years and affordability concerns may keep older homeowners in place longer, reduce inventory in some markets and increase demand for financing solutions that support older borrowers. These including refinance, home equity line of credit (HELOC) and reverse mortgage products tailored to phased retirement income.

Younger generations lean into phased work

The idea of retirement as a gradual shift rather than a fixed date is especially prevalent among younger adults. Nearly 80% of Gen Z respondents and more than 60% of millennials said they plan to phase different kinds of work into retirement, blending income-generating activities with lifestyle goals.

Fidelity notes that Americans report an average of six employers over their careers, and nearly 25% with a retirement savings account say they maintain multiple retirement accounts from current and former employers. That fragmentation is driving interest in account portability and consolidation as part of a retirement income strategy.

Consolidating accounts and leveraging compound growth can simplify drawdown strategies once income shifts in retirement, Fidelity said.

For mortgage professionals, more job changes and multiple accounts can mean more 401(k) and IRA rollovers, liquidity events and changing income profiles that affect debt-to-income ratios. Originators working with pre-retirees may need to document complex income sources and retirement assets more carefully as borrowers phase down full-time work.

Gen X concerns and the role of planning

With more Americans than ever expected to retire in 2026, Gen X stands out for its caution. Two-thirds of Gen X respondents do not believe their retirement savings will last indefinitely, and nearly half say they may need to adjust their lifestyle in retirement.

The data points to planning as a key differentiator. Americans with a financial plan are more than twice as likely to feel confident about their retirement prospects as those without one (83% versus 38%).

“The heart of the new retirement playbook is keeping things personal and practical,” Assaf said. “Planning is what turns preference into payoff.”

Still, more than one-quarter of Americans have yet to put a retirement plan in motion, according to Fidelity. For housing professionals, the study reinforces that retirement timelines and housing moves are becoming less linear. Buyers and sellers in their 50s, 60s and beyond may be planning multiple moves, income pivots and part-time work, changing how they evaluate mortgage terms, home equity and location decisions.