More than half of pre-retirees expect to continue working in retirement, but, how many retirees actually continue to work? Our moneyman, Certified Financial Planner Paul Fain joins us again to review your money and your future.
PAUL, WITH PEOPLE LIVING LONGER IT SEEMS REASONABLE TO ASSUME THAT WE WILL WORK LONGER IN SOME CAPACITY…
- 52%: Agreed and I think that is why 52% of pre-retirement Baby Boomers said they expect to work part-time or full-time during retirement. (In other words, they will “retire” from their career job and do something for income.)
- 6%: However, a recent survey found that only 6% of retirees actually hold down a job.
WHY THE DISCONNECT? WHY AREN’T MORE PEOPLE ACTUALLY WORKING DURING RETIREMENT?
- Old Mindset: retire at 65
- Families are dispersed (freedom to travel)
- Volunteerism and hobbies
- Health problems: self or a family member
WHAT FACTORS ARE GRADUALLY INFLUENCING A CHANGE IN MINDSET?
- Fears of Social Security benefits being reduced. (only 51% of Millennials expect to receive Social Security.)
- Economics: pre-retirees are relying more on how much money they have saved (vs the majority of current retirees decided when to retire based on their age and eligibility for Social Security or pension.)
HOW CAN WE STILL “LIVE THE RETIREMENT DREAM?”
The top lessons retirees would like to pass on to pre-retirees are:
- Save more,
- Start saving earlier,
- Take market risk,
- Plan on retiring later.