While retiring confidence has increased over the past few years, many Americans are still uncertain about their ability to retire when they want. A full 32% of post-retirement-age workers have jobs, up from less than a quarter in 2020.1 In fact, according to PWC's 2022 Employee Financial Wellness Survey, more than half of respondents plan to postpone retirement. Here are some of the reasons why individuals are retiring later in life.
1. They haven’t saved enough
One major reason why people are postponing retirement is because they haven’t saved enough. According to a survey from Retirement Living, 70% of baby boomers were uncertain whether their retirement savings were healthy enough to carry them through retirement.2
2. They need healthcare benefits
Healthcare expenses are a growing concern with 37% of seniors expressing concern that they will not be able to pay for needed healthcare services in the next year.3 The need for healthcare coverage is one reason why seniors may work well into their golden years.
3. They’re supporting dependents
According to a survey from Bankrate, 68% of parents with adult children have made or are currently making a financial sacrifice to support their children financially.4 Just under half, 43%, said that this provision of financial support came at the expense of retirement savings.
4. They enjoy their jobs
The number of seniors over 65 who are working is at all all-time high. Many simply enjoy working and staying sharp. In addition, thanks to technology advancements, working offers more flexibility regarding hours and locations than ever before.
5. Due to setbacks
A struggling economy and surging inflation have caused some older Americans to postpone retirement. According to one survey, 26% of seniors reported that they are continuing to work full time in order to prepare for retirement during a recession. Another 20% say they are applying to part-time jobs.5
6. To maintain their standard of living
Many seniors continue to work because they will not be able to maintain their standard of living. Nearly two-thirds of Americans expect to work past the normal retirement age for financial security.6
These are just a few of the many factors to take into consideration as you plan for your retirement. For a wide array of retirement resources and tips on saving for retirement, visit the Protective Learning Center, then contact a qualified financial professional.
1. Federal Reserve Bank of Minneapolis, 2023.
2. Retiring into a Recession, Retirement Living, 2023.
3. Gallup 2022.
4. Bankrate Survey, 2023.
5. Retiring into a Recession, Retirement Living, 2023.
6. National Institute on Retirement Security, 2021.