About 20% of Americans don't ever plan to retire — here's why you should never hang it up (even if you're able to)

Whether young Americans put that money where their mouth is may be the real question. About half of younger people report not having saved enough for their desired retirement situation. The study also shows more than a third of young Americans with student debt used their savings during the federal payment pause to buy consumer goods rather than invest in retirement vehicles.

But the study’s shocking conclusion that a fifth of respondents have no plans to retire — raises a poignant question: Is it because they’ll need income from a job that never ends? Or maybe the idea of always working isn’t as daunting as it once seemed. Whatever the answer it’s clear that for some, those treasured golden years will merely be an extension of their working years.

Let’s explore why retirement — at least in the traditional sense — isn’t for everyone. For those who’d like to retire but can’t, it starts with money. The MassMutual study, along with numerous others, lays it out: Many of us simply aren’t ready.

Losing out on quality health care

One reason we resist retirement centers on the loss of employer-sponsored health care. With many Americans not adequately saving for retirement, it makes sense that more than 20% of Americans don’t have an emergency fund for medical expenses.

A third of those who do have emergency funds don’t have enough to cover three months expenses. Staying on the job extends access to health care plans and offsets major out-of-pocket expenses — though in some cases, higher deductibles mean the sting is still there.

Obeying the stock market

While many Americans see 65 as a proper retirement age, stock market fluctuations don’t care about those plans. There’s a chance your investment portfolio isn’t as strong as you’d like — and of so, you may need to spend more time working. That allows you to keep your money in the market long enough to benefit from an upswing.

And you’ll likely need to wait for now: The S&P 500 is down more than 8% since the start of 2022.

But what if avoiding retirement is a lifestyle choice?

Stay as long as you like

There’s no law that says you have to retire at any given age. Many find their careers stimulating enough that the thought of leaving those challenges — plus the professional and personal friendships forged over the years — raises the specter of boredom and monotony.

As finance content creator Rob Berger puts it, many of us have been conditioned to think that life begins once we end work. But those who find their vocations meaningful and socially fulfilling would disagree: Just ask 93-year-old billionaire Warren Buffett and his 99-year-old Berkshire Hathaway sidekick, Charlie Munger.