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Edelman Financial Engines Finds Americans Want a More Active Retirement – But Their Confidence Falls Short Without a Plan

via Business Wire

Research reveals greater demand for retirement income planning amid economic uncertainty and shifting goals

Recent insights1 from Edelman Financial Engines (EFE) reinforce a striking trend in how Americans think about retirement: specifically, they imagine these years to be more active, more purpose-driven, and more personalized than ever before. Yet while the vision for retirement is constantly changing, confidence in affording it is lagging. More than one-third (35%) of Americans say their ideal retirement lifestyle feels financially out of reach, and nearly two-thirds (65%) feel only somewhat confident they can afford the retirement they envision.

The top independent wealth planning2 and workplace3 investment advisory firm polled more than 3,000 U.S. adults and found that retirement is no longer viewed simply as a time to slow down. Instead, Americans are planning for reinvention, family time, travel, and exploration. Nearly 4 in 10 (39%) say they want an adventurous retirement; 42% say they want to stay active; and a growing number envision a minimalist (26%) or nomadic (24%) lifestyle that does not tie them down.

"People are no longer just saving for retirement—they're planning for how they want to live in it, and many view this phase of life as more dynamic than ever before," said Kurt Fauerbach, SVP, Head of Workplace. "But one significant challenge is establishing the right level of financial security to reach those dreams. Turning that vision into reality requires a plan for generating income that can weather economic uncertainty and support long-term goals."

Uncertainty and Complexity Drive Demand for Help. Retirement planning has grown increasingly complex, with longer life expectancies, market volatility, inflation, and concerns about Social Security adding new pressures in recent years. More than 8 in 10 (81%) Americans are worried about potential reductions in Social Security benefits, up from 73% in 2023.

Among those without financial advisors, the top area where they want support is retirement income planning (38%, up from 24% in 2023), followed by help creating a comprehensive financial plan (34%). Even for individuals who do work with an advisor, retirement income planning is still viewed as the top unmet need (26%, up from 16%).

Money vs. Time: The Toughest Tradeoff? When asked to choose between adding $1 million to their retirement savings or adding five extra healthy years to their life, 51% chose the money. Only when the time horizon expanded to 10 extra healthy years did some respondents (19%) shift their preference toward more time, which reinforces how the financial and physical quality of one’s retirement lifestyle is an important factor.

A New Era of Legacy Planning. Parents also appear to be rethinking their legacy goals. Those who plan to leave an inheritance want to pass on more than double what their heirs expect. While the median amount children anticipate is $85,000, parents report a target of $200,000, with 72% aiming to leave at least $100,000.

“Our goal at Edelman Financial Engines is to take the guesswork out of retirement planning, which is an integral part of a broader financial plan,” said Amin Dabit, SVP, Wealth Planning at Edelman Financial Engines. “Through a personalized, comprehensive approach, we help clients connect the dots between income sources, tax strategies, estate planning, and healthcare costs so they can plan for the retirement they want—and live it with confidence.”

For more information, visit: https://www.edelmanfinancialengines.com/education/retirement/

About Edelman Financial Engines

Since 1986, Edelman Financial Engines has been committed to always acting in the best interests of our clients. We were founded on the belief that all investors – not just the wealthy – deserve access to personal, comprehensive financial planning and investment advice. Today, we are America’s top independent financial planning and investment advisory firm, recognized by Barron's2 with 144+ offices across the country and entrusted by 1.3 million clients to manage more than $293 billion in assets.4 Our unique approach to serving clients combines our advanced methodology and proprietary technology with the attention of a dedicated personal financial planner. Every client’s situation and goals are unique, and the powerful fusion of high-tech and high-touch allows Edelman Financial Engines to deliver the personal plan and financial confidence that everyone deserves.

1. Insights collected from the 2024 Everyday Wealth in America survey, an annual research program conducted for Edelman Financial Engines by Greenwald Research. Information was gathered from 3,008 Americans who were at least 30 years old and includes an oversample of 1,500 affluent Americans between 45 and 70 of age, with household assets between $500K and $3M, and who are open to or currently working with a financial professional. Data is weighted to correct for the oversample and is also weighted by household assets, age, gender, race, and education to reflect the broader national population. If this study were a random survey, it would have a margin of error (at the 95% confidence level), of plus or minus 1.8 percentage points.

2. The Barron’s 2024 Top 100 RIA Firms list, a nine-year annual ranking of independent advisory firms, is based on qualitative and quantitative factors. Firms elect to participate but do not pay to be included in the ranking. The 2024 ranking refers to EFE as the top mega RIA.

3. According to the Cerulli Associates Top Nine Managed Account Sponsors by DC Assets survey of Defined Contribution managed account providers, The Cerulli Edge – U.S. Retirement Edition, 1Q 2025, Issue #74, Edelman Financial Engines is the largest managed account provider by DC assets and market share as of Dec. 31, 2024.

4. Edelman Financial Engines data, as of December 31, 2024.

© 2025 Edelman Financial Engines, LLC. Edelman Financial Engines® is a registered trademark of Edelman Financial Engines, LLC. All advisory services provided by Financial Engines Advisors L.L.C., a federally registered investment advisor. Results are not guaranteed. AM 4436436

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