1 in 3 older workers plan to work past 70 or never retire

Nearly one in three older workers plan to work past 70; or actually never retire, according to a new US study.

A large percentage of older Americans are no longer looking forward toward a work-free retirement, according to American Advisors Group (AAG). Its latest Post-2020 Retirement Survey with over 1,500 senior Americans (aged between 60 and 75), revealed that an alarming number of older workers are pushing their retirement dates way past the traditional age; with some even planning to work for the rest of their lives.

In fact, nearly one in five seniors (18%) said they plan to work past the age of 70; and an additional 12% do not plan to ever stop working full time, noted the finance group. Additionally, around half of seniors (46%) said they plan on working part time; or picking up a side job during their retirement.

WORKERS PUSH BACK RETIREMENT PLANS

Many adults are working later in life to make ends meet, and the events of 2020 have accelerated the trend. The changing landscape of retirement has caused a large percentage of older Americans to push back their retirement dates; or pick up working again to make up for lost ground. 

Seniors may be working more to fund their retirement; but housing expenses are not the main reason for continuing to work past retirement, according to AAG’s report. Nearly half of older adults (47%) have their paid off their home loans and live mortgage free, reveals the study. 

However, older Americans ranked “creating an emergency fund” and “filing for income tax refund” as their top two solutions to improve finances. However, neither one of these options can be used to create long-term retirement sustainability. Meanwhile, older adults own over $8 trillion in housing wealth; which could be used to supplement income for millions of seniors in America, noted the report.

SENIORS WORKING FOR LONGER

“After the uncertainty created by the events of 2020, many seniors want to ensure that they will have the financial means and flexibility to enjoy the retirement they had hoped and planned for,” stated AAG Chief Marketing Officer Martin Lenoir. “While we know that Americans are living longer, this survey illustrates that seniors are working longer into their retirement years too. We’re also starting to see a positive shift with our customers who have done their research; they are looking at home equity to fill that cash flow gap so that, instead of working longer, they can enjoy the lifestyles they’ve spent years building.”

For more information about AAG’s Retirement Survey, click here. People aged 50+ in countries like the UK and US face early retirement forced on them without urgent Government support as long-term employment prospects fall amid Covid-19. The National Council on Aging (NCOA) also recently urged US Congress to help adults aged 55+ get back into employment as part of its economic recovery plans, as reported.