The dream of retirement is getting further out of reach for many Americans. This year more than 4 million Americans will turn 65, and the ninth annual Nationwide Advisory Authority survey, powered by the National Retirement Institute, is showing that traditional dreams of retirement are out of reach for many people. The survey found that more than 69 percent of pre-retiree investors, aged 55 to 65, believe they will not be able to retire at 65. More than two-thirds of pre-retirees believe they will be faced with more challenges related to retirement than their parents and grandparents. 

"Many of us watched our parents and grandparents enjoy a smooth transition to a secure retirement powered by traditional pension benefits," said Eric Henderson, president of Nationwide Annuity. "Today's investors are having a tougher time picturing that for themselves as they grapple with inflation and concerns about running out of money in retirement," said Henderson.

The survey demonstrates a shift from the classic view of retiring at age 65 and has instead revealed a generation that believes retirement may not be in their future at all. More than 40 percent of pre-retirees believe they will have to keep working to supplement their retirement income, while 27 percent say they will have to live more frugally to fund their retirement goals. 

More than 20 percent said their plans to retire in the past 12 months were put on hold or pushed back. 

Many pre-retirees have indicated they have already adjusted their spending habits, with 42 percent reporting that managing day-to-day expenses has become more difficult and 27 percent say they are saving less for retirement due to inflation. 

With lower interest rates not expected until later this year or even next year, 57 percent of pre-retirees say that inflation poses the most immediate challenge to their retirement portfolio over the next year, with 41 percent saying they have avoided unnecessary expenses such as vacations and shopping to save for retirement. 

Many Americans are no longer relying on traditional safeguards in retirement, with 38 percent of respondents saying they lack confidence in the viability of Social Security. More than 43 percent of respondents said they are not counting on social security as much as they had expected, and 27 percent say they expect to receive less than previously anticipated. 

"The final years leading up to retirement are a critical time for making decisions that can carry lifelong implications," Henderson said.