While retiring confidence has increased over the past few years, many Americans are still uncertain about their ability to retire when they want. In fact, according to PWC’s 2020 Employee Financial Wellness Survey, 51% of those surveyed said they expect to be working in retirement, up from 48% in 2019.1 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 the PWC study, 38% of individuals in all age groups have less than $1,000 in savings to deal with unexpected expenses.2
2. They need healthcare benefits
Nearly six in ten (58%) seniors have concerns about their ability to afford future healthcare costs.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, approximately half or respondents said they were willing to sacrifice their own retirement in order to support their adult children financially.4 This means many seniors are delaying retirement or withdrawing from their retirement funds to help cover expenses.
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
The events of 2020 created significant financial upset. According to one survey, 44% of respondents reported that they would continue to work longer as a result of prolonged stock market woes and 18% said they would work for at least five more years as a result of the market drop.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 or contact a qualified financial professional.
1. PWC Employee Financial Wellness Survey, 2018.
2. PWC Employee Financial Wellness Survey, 2018.
3. Medicare Guide Poll, 2020.
4. Bankrate Survey, 2019.
5. SimplyWise Survey, 2020.
6. National Institute on Retirement Security, 2021.