When do you want to retire? The popular belief has always been age 65 but in a recent survey, it seems that that is no longer the case. In a survey done by Transamerica, it was found that 51% of people are planning to work part-time once retired. A poll of workers 60 and older want to work until after 65 with 18% of workers with no intention to retire anytime soon.
A want or a need?
These recent numbers beg the question, why? Are we working longer because we want to or because we feel that we need to financially? It seems, that financial reasons are not the sole reasoning behind continued work into retirement years.
Out of those surveyed, 61% said income,as well as employee benefits, were a large component in their decision to continue their career with 34% or respondents wanting to work past age 65 because they enjoy their work and the social and mental benefits it offers.
Working through your sixties.
So, as it seems, retirement and work are no longer separate entities. Although we may want to, retirement may not be a good financial option for you at 65. When the time comes, some of us don’t have adequate savings and therefore, choose to continue working in order to let those savings accumulate a little more.
In addition to your savings having time to compound, working until full retirement age also means receiving more monthly in Social Security benefits. That being said, when surveyed, 41% of respondents saw themselves making a gradual entry into retirement by slowing transitioning from working full time to working part time during their sixties.
Planning is key.
Although the most important aspect of retirement is having a plan, it doesn’t always go the way you want. A recent survey showed that 67% of retirees had left the workplace before age 65 and only 18% worked past age 65, a plan 41% of respondents had.
How do I do it?
This might leave you wondering how do I make this gradual transition into retirement if only 18% of people managed to continue working past the age of 65? For starters, your health is a major factor when deciding to retire. If you’re in good health and can maintain your health you will be able to work longer than those in poor health.
Another tip is to never stop learning and networking. Whether it be enhancing your skill set with the latest technology or continuing education courses, never distance yourself from your career if you plan to continue working.
It is important to keep in mind that you may want to change careers and work part time at something different. That being said, it is a good idea to sit down and evaluate what you’re passionate about, to get a handle on what you might want to do after leaving your full-time career.
Gradual retirement, the new normal.
A slow transition from working to retirement may just be the new normal as the baby boomers, the generation that has always been full of surprises, enters their retirement years. No matter what retirement path you choose, remember to plan for it. To get started on a retirement plan or to check up on your existing plan, contact us today.
Sources:
1- transamericacenter.org/docs/default-source/retirement-survey-of-workers/tcrs2016_sr_perspectives_on_retirement_baby_boomers_genx_millennials.pdf
2 - Bloomberg.com