Retirement Reimagined: Designing Your Later Years

As traditional retirement models give way to dynamic, lifelong planning, individuals now have the opportunity to design their later years with intention and innovation.

Shifting Mindsets and Demographics

Retirement is no longer a simple transition from work to leisure. According to a recent Gallup poll, traditional retirement is fading as 74% of currently employed adults plan to work past age 65, compared to just 14% in 1995.

The Bureau of Labor Statistics projects that between 2016 and 2026, labor force growth for ages 65–74 will exceed 50%, while the 75-and-older cohort will grow by more than 91%, far outpacing the overall 6.6% gain. These figures underscore a broader trend toward unretirement driven by economic pressures or labor shortages, with unretirement rates averaging 1.9–2.2% annually.

Rethinking Readiness and Plan Design

Despite rising participation, many workers remain off track for a secure retirement. Thirty-one percent of employers report that participants are behind schedule, while 28% cite low engagement levels.

A striking 34% of employees aged 35–62 are unaware of available financial wellness programs, and another 21% aren’t sure if such tools exist. Experts now stress the importance of emergency savings, effective debt management, and compounding benefits through early saving as fundamental pillars of modern plan design.

2026 Contribution Limits and Incentives

Enhanced contribution limits and new incentives are key features of the 2026 landscape. These thresholds empower savers to bolster their nest eggs and leverage tax advantages.

Technology and Personalized Planning

Advancements in automation and artificial intelligence are transforming how individuals plan for retirement. Auto-enrollment and auto-escalation have become the gold standard for boosting participation, with 75% of workers aged 25–35 now enrolled in employer-sponsored plans.

While auto-enrollment drives engagement, just 2% of participants maximize contributions. To close this gap, mobile apps and streamlined websites are emerging as vital tools, with 39% of companies finding apps highly effective for enrollment and 26% praising improved online interfaces.

• AI-driven income projections and spending forecasts
• Interactive Social Security and Medicare education modules
• Real-time paycheck modeling and tax optimization
• Digital and virtual coaching for pre-retirees

Diversified Income and Investment Solutions

Investment managers continue to innovate retirement solutions. Target-date funds now hold $4.3 trillion in assets and represent 37% of all 401(k) assets, with more than 65% of contributions flowing into these vehicles.

Beyond traditional TDFs, hybrid approaches, in-plan income options, and annuity marketplaces offer secure, fulfilling later years through systematic withdrawal strategies and managed accounts. Increasingly, defined contribution plans integrate private assets to enhance diversification and mitigate risk, reflecting a shift away from the pension insurance transfers that declined from $23.4 billion in H1 2024 to $10.6 billion in H1 2025.

Expanding Access and Employer Strategies

Small businesses and gig workers stand to benefit from new legislative changes under SECURE 2.0. Fintech-driven recordkeeping, multiple employer plans, and state auto-IRA programs are expanding coverage to previously underserved segments.

Employers tackle fiduciary and compliance burdens through outsourcing, while enhancing pre-retiree wellness initiatives and holistic, personalized retirement strategies that address both accumulation and income distribution phases.

• State-facilitated auto-IRA programs
• Multiple employer plans and pooled employer plans
• Outsourced fiduciary and compliance support
• Enhanced financial wellness and retirement coaching

Navigating Economic Factors and Bolstering Confidence

High inflation and fluctuating interest rates complicate retirement planning. Surveys indicate declining confidence, with fewer participants optimistic about retiring at their desired age. Yet plan sponsors report rising participation and renewed focus on lifetime income solutions.

The safe withdrawal rate for those starting retirement in 2025 is projected at 3.9%, a benchmark that underscores the need for disciplined spending strategies and adaptable income sources.

To navigate these complexities, individuals should:

• Estimate essential living needs under various market scenarios.

• Incorporate both guaranteed and market-based income streams.

• Regularly review Social Security and Medicare timing strategies.

• Leverage technology for real-time portfolio stress testing.

Designing Your Personalized Retirement Blueprint

Reimagining retirement means embracing a blend of work, leisure, and continuous learning. Whether you plan to continue part-time consulting, embark on entrepreneurship, or transition fully to volunteer roles, a tailored framework ensures financial security and personal fulfillment.

Start by defining non-negotiable living expenses, then align investment choices and withdrawal plans to support your desired lifestyle. Regular check-ins and adjustments will keep your strategy on track amid shifting economic conditions and personal priorities.

By combining robust savings habits, strategic use of technology, and diversified income solutions, you can craft a retirement journey that reflects both your financial goals and your aspirations for meaningful engagement in later life.

Embrace the opportunity to design a retirement that honors your values, leverages modern tools, and adapts to evolving trends. The future of later years belongs to those who plan boldly, learn continuously, and remain open to flexibility and growth.