Economic stress is pushing employees to work past retirement, putting pressure on employer plans
Retirement is looking less like a clear-cut exit from the workforce and more like a gradual, sometimes reluctant, shift into part-time work for many employees around the world, according to a new study.
New research from T. Rowe Price shows roughly one-third of global retirement savers now expect to keep working in some capacity after they retire, underscoring a mix of financial strain, economic uncertainty and evolving expectations about later life.
According to the inaugural Global Retirement Savers Study, about a third of global employees expect to work at least part time once retired, with the share rising to 37 per cent in the U.S.
The survey, which polled more than 7,000 employees in Australia, Canada, Japan, the U.K. and the U.S., highlights how deeply the prospect of extended work has become normalized in retirement planning conversations.
The inclusion of Canadian employees in the sample suggests this is not a distant or purely American trend. For Canadian employers competing for talent in a tight labour market, the expectation that employees may cycle between full-time, part-time and phased retirement could reshape workforce planning over the next decade.
Economic unease reshaping retirement expectations
Beneath the headline figure sits a broader story of economic anxiety. Half of respondents worldwide expect a recession by mid-2026, suggesting that near-term macroeconomic worries are weighing heavily on retirement savers’ plans.
Inflation was cited as a top concern by 42 per cent of those surveyed, with geopolitical events (30 per cent) and interest rates (27 per cent) also featuring prominently.
These pressures appear to be eroding confidence in retirement security. Seventeen per cent of respondents said they believe they will run out of money in retirement, and only 27 per cent expressed confidence that they could withstand a major financial shock once retired.
Workers doubt their retirement lifestyle
The survey points to a significant confidence gap about what retirement will actually look like.
Only 31 per cent of global respondents said they expect to live as well or better in retirement than they do today, with pessimism especially pronounced in Canada and Japan, while optimism is relatively stronger in the U.S., Australia, and the U.K., according to the survey.
The survey also found gender differences in retirement confidence, with women — particularly single women — reporting significantly lower confidence than men.
That gender gap has implications for pay equity, benefits design and targeted financial education, especially given Canada’s long-standing focus on closing gender-based disparities in pay and retirement outcomes.
Workplace advice and plan design under the microscope
A notable finding from the global survey is the central role employers and workplace providers continue to play in retirement decision-making. Three of the four most relied-upon sources of advice for retirement savers are connected to the workplace, with the highest reliance reported in the U.S.
Despite the growth of digital tools, human advisors are tied with the retirement plan recordkeeper as the most relied upon source of advice worldwide. The data suggests workers aren’t simply looking for more investment choices — they want guidance they can act on.
Another T. Rowe Price survey highlighted varying preferences for default investment options versus active choice across age groups, with older savers showing a growing interest in professionally managed portfolio solutions and Gen Z showing more inclination to choose their investments.
A turning point for retirement policy
The survey findings may be a warning to Canadian organizations, as employees’ lived experience of retirement is shifting faster than many workplace programs.
Economic uncertainty, persistent inflation, and longevity risk are pushing more workers to assume they will have to keep working well into what used to be considered retirement.
At the same time, employees are signalling that they still trust employer-linked channels for guidance — and they are looking for help making complex decisions amid volatile conditions.
