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A recent survey by Thrivent Financial of adults ages 45 to 64 found that 43% overall (and nearly half of men) plan to work full or part time in retirement. And nearly a third of those surveyed said they plan to work to "stay busy."
While financial security remains the primary reason Americans are working longer, it's not the only one, retirement experts say. Many people who could afford to retire comfortably fear that full-time retirement would erase a key part of their identity. A Schwab Institutional survey of financial advisers found that 97% of their clients who retired from their primary careers, but continued to work, cited a desire to stay active.
In 2006, nearly 30% of Americans ages 65 to 69 belonged to the workforce, up from 18% in 1985, according to the Employee Benefit Research Institute. The percentage of older workers with full-time jobs is also rising, EBRI said.
Retirement experts say the increase in older workers primarily reflects the erosion of traditional pensions, inadequate retirement savings and rising health care costs. And as Baby Boomers enter their golden years, it's a trend that will likely continue. Advocates for seniors say it could alleviate projected labor shortages in fast growing sectors, such as health care and education.
"We're going to be fortunate as a country that so many older people really want to continue to work," says Cynthia Metzler, chief executive for Experience Works, a nonprofit that helps older people find jobs. "There's a need from employers, and there's a talent pool to fill that need."
Source: USA Today, August 31, 2007
