A study by the Transamerica Retirement Research Center found that at least 55 percent of potential retirees plan to delay retirement and continue working. Yahoo Finance columnist Kelly Hannon details the savings anxiety experienced by older US workers.
video transcript
Rachel Akufo: A relaxed retirement may be a pipe dream for some, with 55% of people planning to continue working after retirement, according to a new study from the Transamerica Retirement Research Center. Yahoo Finance’s Kerry Hannon explains the details. That’s a shame. That’s sad. I mean, is this a must?
Kelly Hannon: Well, let me tell you, I personally don’t think work is a bad thing. There are many valid reasons to continue working after retirement. But this is worth noting. Because people for generations are saying, “Now we can’t save enough for old age.” We don’t have enough income.
A certain pessimism prevails about living longer than their savings. So to me it just seems like a default response of “Well, what do you know?” I plan to continue working even after I retire. You may not be pedaling, but you will have a part-time job. Some are full-time. But a surprising 15% said they expect work to be their main source of income after retirement, which really surprised me.
But the problem is when people actually think about work and start to realize that even if you get kicked out of the office at 65 or whatever year, you can’t afford to quit your job because of a cold. . If you are dismissed and it is difficult to return to work, you will be dismissed early.
You know, the biggest reason people say they’re going to work after retirement in some way is because they’re concerned that social security isn’t good enough. A second reason is that they worry that they will not be earning or saving enough to support their lifestyle in a comfortable way. The third reason is paying medical bills. You and I know this is going to cost a lot as people get older. These are the reasons we see people thinking about it.
The problem here is why we say it’s a pipe dream, why you said it, and employers don’t quite get it yet. They cannot accommodate phased retirement, flexible working, shifting staff to less stressful jobs, or flexible working hours.
They haven’t gotten there yet. They are starting to understand that they need to provide this to retain their employees. What is the reason? Rachel, this is great. Demographic changes are worth noting. And the birth rate plummeted. And they are starting to feel the fact that the labor market is tightening.
And in fact they really need some of these older workers to keep working. Because I think what we’re seeing, this transformative happening in the workplace, is that by 2030 there will be more people over the age of 65. This has a big impact on the workplace. So I think employers will start to understand this as well.
Rachel Akufo: I mean, you get it. His father retired and went back to work. He loves his job and he is 80 years old. And he’s like, “Yes, no, I’m fine.” I’m just going to keep working. So what should people know about how to prepare for a longer working life?
Kelly Hannon: right. So not everything is hopeless and bleak. So, even if you save properly, it is very important that you have some income. This means you don’t have to put money into your retirement account. Social Security benefits can be deferred until he is 70.
But if you want to keep working after retirement, you definitely need to be prepared. You’ll need to keep your skills up to date, add your certifications, and even earn a degree if you’d like. must be astute. You have to be lean, mean, and ready to get the job done. no one is going to do it. You are not philanthropic and must act. You have to stay healthy.
One of the main reasons people leave the workplace is for health reasons. Pay attention to nutrition-conscious exercise and diet. Then do a survey of your surroundings. Start as early as five years before you retire. What do you want?
Do some volunteer work or moonlight work. Try some. What kind of jobs can you do? So instead of retiring from something, retiring for something, let’s take a look at a new form of work that can actually be great financially and mentally. So while I hate being an upsider like Susie here, I think there’s a positive side to that as well.
Rachel Akufo: No, I like it retire for something It puts a different twist on being the end of an era versus what I’m actually looking forward to and some changes I enjoy. Great content as usual. Our very own Kelly Hannon. Thank you very much.
Kelly Hannon: wonderful.
