Retirement is transforming from a fixed endpoint into a set of flexible paths to financial freedom.

This shift reflects changing demographics, policies, and work trends.

Instead of stopping at 65, people now envision gradual transitions.

The Changing Face of Retirement

Many no longer see retirement as a hard stop.

They imagine phases like partial work or mission-driven careers.

This evolution is driven by personal aspirations and economic realities.

• In a 2025 study, many plan to work for causes they believe in.
• 33% intend to retire later, and 30% aim for partial retirement.
• Expectations have shifted, with fewer planning to retire before 65.

This angle highlights retirement as a gradual transition with phases.

Big-Picture Numbers: Needs vs. Savings

Americans now say they need $1.26 million to retire comfortably.

This is down from previous years but still high.

However, a significant savings shortfall exists for many.

• 25% have one year or less of their income saved.
• Inflation changes have influenced perceived nest eggs.

The psychological gap between targets and savings is a critical challenge.

Framing freedom around income flexibility might be more practical.

Policy and Structural Trends

Systems are pushing people to work longer.

Normal retirement ages are rising across OECD countries.

This encourages reimagining when and how to retire.

• Effective retirement ages have increased over the past decade.
• Gender gaps persist, but participation rates for those 60+ are up.

Flexible retirement instruments are becoming more common.

Reform trends include stronger incentives to combine work and pension.

However, equity concerns limit access for lower-income groups.

Employer Plans and Flexible Savings

Flexible employer savings can help lower-income workers.

Many skip savings for daily needs, hurting readiness.

• Mercer defines readiness as a 75% probability of not running out of money.
• For a $50,000 earner, flexible plans can improve readiness age.

Plan design is shifting toward personalization.

• Target-date funds and self-directed options are on the rise.
• SECURE 2.0 Act introduces automatic enrollment and higher catch-up contributions.

This convergence supports varied retirement timelines.

Access to Workplace Plans

Access to a workplace DC plan is a game changer.

It significantly boosts retirement readiness outcomes.

• 54% with access are on track, compared to 28% without.
• Autoenrollment and auto-escalation transform outcomes for younger generations.

Small behavioral changes can make a big difference.

Delaying retirement by two years helps more Americans get on track.

This emphasizes the importance of strategic plan usage.

Partial Retirement and Side Gigs

Many expect to work in retirement through flexible options.

This includes side gigs or part-time work at the same job.

• Around 19-21% anticipate side gigs with flexible hours.
• 32% of Boomers plan part-time work at their current job.

Social Security strategies vary widely.

• 28% take it early, while 26-27% delay to maximize benefits.

Flexible paths mean using work to bridge gaps.

It allows retirement to be values-driven rather than financially mandatory.

Strategies for Financial Freedom

To build flexible paths, start by assessing your current situation.

Leverage workplace plans and consider automatic contributions.

Explore side gigs to create additional income streams.

• Identify skills you can monetize in retirement.
• Plan for phased work to reduce drawdown pressure.

Adjust savings based on life stages and needs.

Use tools like target-date funds for long-term growth.

Stay informed about policy changes that affect retirement.

Embrace a mindset of continuous adaptation.

This approach can lead to a more secure and fulfilling future.

Retirement is not about stopping but about finding new ways to thrive.