Do you plan to retire at 65? Or will you work as long as you can? A new trend among older workers in the United States has found 26.5% will continue to work past retirement age. In fact, almost 20% of Americans 65 and older are still working – due largely to the fact the huge Baby Boomer generation is creeping toward this age and beyond. So, why are they still working?
For starters, many just need money. According to data collected by The Federal Reserve, only 13% of working Americans said they have given a “lot of thought” about retirement. Additionally, only 22% feel financially ready to retire. Thirty-nine percent haven’t thought about saving for retirement in any capacity. Twelve percent of these survey respondents plan to NEVER retire. The main culprit for these staggering numbers is financial woes. The recent crisis, and the tech bust before that, tarnished many a retirement savings. A whopping 60% of Americans have no money in a 401(k) or similar accounts.
The more annual income, the more likely a person is to consider retiring at 65. For example, 17% of Americans who earn less than $40,000 do not plan to ever quit working, while those make more than $100,000 only responded at a 7.5% rate.
Another reason many reported for delaying their retirement is the fact they enjoy working. A separate survey by Transamerica revealed 36% of Americans working past 65 like their job, and enjoy being active and involved. As more and more people graduate yearly with four-year degrees, this number will increase. More schooling leads to longer careers.
A low unemployment rate in the country also has employers working to keep people employed. The pool is of eligible employees is smaller, so the need to keep older employers on payroll longer is greater. Perhaps the most positive reason people continue to work is Americans are living longer, healthier lives. Only 5% of actual retirees claim to be in “poor life” according to Transamerica. With life expectancy reaching into the late 80s, many surveyed indicated that retired life seemed “boring” or “not satisfying.”
Whatever the reason, the rate of older Americans working continues to rise, with no signs of stopping. Where do you fall into these categories? Are you prepared? Do you want to keep working? If you're planning on retiring, plan ahead by investing in yourself. Not sure how? Take a look at our 401(k) calculator.
These free resources should not be taken as tax or legal advice. Content provided is intended as general information. Tax regulations and laws change and the impact of laws can vary. Consult a tax advisor, CPA or lawyer for guidance on your specific situation.