Working Late, Choice or Not

As the saying goes: Times, they are a'changing.  Gone are the days of retirement filled with nothing but lazy days around the house and restoring that old clunker in your garage.  While those can still be possibilities, it is increasingly likely that your retirement days may be full of something you've been quite familiar with for decades: employment.

The fact is, more elderly citizens are working through their retirement.  To find out why, the Employee Benefit Research Institute conducted a survey aimed at this very phenomenon.  Let's take a look at a few of the reasons they discovered that help to explain why retirees are continuing to work.

Reason #1:  Retirees don't have enough savings.

This one should be obvious.  If you don't have enough savings, you're going to want to continue working for as long as you can.  The survey conducted by EBRI showed a drop in the number of people who either have money saved themselves or whose spouse has saved.  In 2009, that number was 75%.  But in 2012, it is only 66%.  That is definitely not a good sign.

Other numbers are alarming, as well.  The survey found that approximately 60% of workers have less than $25,000 socked away (not including a house or pension).  Even worse, 30% claimed to have less than $1000 in savings.  These numbers clearly show that far too many people are not taking part in retirement planning.  If these people don't start gaining control over their financial portfolios, many of them will be in bad shape throughout their retirement.

Reason #2:  Retirees have never felt safe when it comes to job security.

A number of workers do not concern themselves with planning for retirement because they're too worried about their current employment situation.  The days of staying with one job from the age of 18 until you are ready to retire are pretty much over.  Instead, workers are constantly worried about when they might find themselves on the chopping block.  In other words, people approaching retirement have more pressing concerns at the current time than worrying about how they'll deal with retirement.  Although that might not be a healthy stance to take, many Americans can understand such a sentiment.

Reason #3:  Retirees have too much debt.

Debt is a big problem in this country.  Whether it's taking on a house or car payment that is outside your comfort zone or racking up credit card debt and medical bills, many people closing in on retirement are trying desperately to pay off their debts so that their retirement can run smoothly.  The problem with this is that focusing all of your energy on your debt and none on saving for your future can end up causing the very problems you're trying to avoid.  Nowadays, many retirees are planning to work after they've retired to help alleviate their financial stress.

Reason #4:  Retirees have lowered their expectations.

In years past, retirees often looked to their retirement with a sense of happiness and excitement.  But given the current state of things, many are not counting on having such an easy time.  Not only will many not be able to take an early retirement due to financial concerns, many of them will rely on remaining in the workforce in order to survive.  The EBRI survey showed that the number of workers who plan to retire after 65 is up to 37%.  That is a 26% increase since 1991.  Which means many retirees feel they have no choice but to work through their retirement.

Source: http://firstsecurityfinancialshow.com/blog/bid/162804/Working-Late-Choice-or-Not

sites source