Early retirement aspirations are here to stay, Fed study shows

Dreams of retiring early are becoming the norm as the share of U.S. workers planning to work beyond age 62 continues to retreat, extending a downshift that started with the pandemic.

The share of people who say they will likely be working full-time after age 62 dropped to 45.8% in March, according to Federal Reserve Bank of New York research examining labor market and consumer expectations surveys. That's the smallest share in data back to 2014.

Since March 2020, an average of 49% of respondents said they would work past 62, down from an average share of 55% from March 2014 to March 2020. The trend was similar, though the share was smaller, among respondents when asked about working beyond age 67.

"Pandemic-induced change in retirement expectations may continue to affect the labor market in years to come," the report's authors said.

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The reasons for the shift are numerous and wide-ranging. Everything from health concerns, helping to care for grandkids, and a general disengagement with work have been cited. Patterns and work routines that were seen as normal before the pandemic are now unacceptable to many, including long commuting distances. 

There has also been a cultural shift characterized by rethinking the value of work, according to the Fed. In particular, the shift has been more pronounced among women than men.