PUBLISHED Oct 30, 2026, 8:06 AM ET
Authored by Levi C. Webb
New retirement research shows rising confidence among workplace savers alongside financial pressures that force workers to balance future security against immediate needs.
Workers are feeling better about retirement, yet new surveys show everyday expenses, emergency withdrawals and expectations of longer careers complicating their plans for financial security.
American workers can feel more optimistic about retirement while still struggling to finance it, according to research released this October. MFS Investment Management reported on October 21 that 41% of surveyed American workplace retirement plan participants were very or extremely confident they could retire at their desired age, up 13 percentage points from 2025. Yet 60% expected to work longer than planned, and three-quarters said competing financial priorities prevented adequate retirement saving. The findings suggest that improved sentiment can coexist with substantial adjustments to the retirement workers originally envisioned.
The scope of that optimism matters when interpreting the results. MFS surveyed 700 active workplace retirement plan participants and 300 retirees through an online study conducted from June 4 through August 24, with active participants required to be contributing to an eligible employer plan. Its confidence finding therefore describes participating workplace savers rather than every American worker, including those without access to such plans. The survey measures expectations and reported behavior; it does not establish whether respondents have accumulated enough money to meet their eventual expenses.
Separate reporting shows how immediate financial needs can interrupt an early start on saving. In an October 28 Investopedia article, available through AOL, Elizabeth Guevara reported that the median Generation Z worker in Transamerica research began saving for retirement at 21. Nevertheless, more than one-third had borrowed from retirement accounts or withdrawn money early, while median emergency savings stood at $3,000. The distinction between loans and withdrawals matters: the combined figure should not be interpreted as the share permanently cashing out savings, although both show retirement accounts being used to address present financial pressures.
That creates a concrete tradeoff between meeting an urgent expense and preserving money for later life. Guevara reported that financial emergencies and medical bills were leading reasons young workers borrowed from their retirement accounts, and explained that withdrawals or unpaid loans can carry tax consequences and penalties. Money removed from an account also loses the opportunity to remain invested there, weakening the benefit of starting early. The reporting supports a broader interpretation: encouraging workers to begin saving addresses only part of the problem when their emergency reserves remain limited.
Older workers face a different version of the same tension, with less time remaining to adjust their plans. InvestmentNews reported on October 30 that Transamerica research found 36% of Generation X workers expected to retire at 70 or older, or never, while 53% planned to work in retirement. Those findings came from a Harris Poll survey of 6,153 workers at for-profit companies conducted in September and October 2025, making them background evidence rather than an October 2026 snapshot. They remain relevant to the newly released reporting because they document the longer-career expectations against which today's retirement confidence should be assessed.
The studies cannot be combined into a single national retirement score because they cover different populations, questions and fieldwork periods. Nor do expectations of working longer demonstrate that workers will ultimately be able to sustain those careers or close their savings gaps. Taken together, however, the findings suggest that retirement readiness depends partly on whether households can absorb current costs without repeatedly drawing on future resources. For employers and retirement providers, that raises a practical question about whether support for budgeting and emergency savings receives enough attention alongside investment choices and retirement income planning.
The unresolved issue is whether greater confidence will translate into durable savings and achievable retirement dates; these surveys describe intentions and pressures, rather than proving that either outcome is secured.
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Reporting and writing by Levi C. Webb. AI tools were used selectively to assist with research and editorial support.
© 2026 Fat Wagner LLC. All rights reserved.
Sources
- Retirement Confidence Surges, But Readiness Gap Persists for Many Americans, MFS Survey Finds — MFS Investment Management via Business Wire and Nasdaq
- Gen Z Started Saving for Retirement Early. Here’s Why So Many Are Already Raiding Their Accounts — Investopedia via AOL
- Inflation and debt leave four generations strained in retirement race — InvestmentNews