Top Reasons For Working Past 65

Adults age 65 and older are twice as likely to be working today, and many of them are making good money, says AARP

Older Americans are living longer than ever.

So it should be no surprise that many plan to continue working into retirement to keep busy and stay mentally fit, reports Jacqueline Sergeant for Financial Advisor magazine.

By 2026, almost 1/3 of all individuals in the 65-to-74 age group are projected to be gainfully employed, according to the Bureau of Labor Statistics. That’s up from prior years.

Almost 40% of workers currently in their 40s and 50s think working past the traditional retirement age is a good idea even if there is no financial need, based on survey results from brokerage firm TD Ameritrade. Some pre-retirees actually say they would like to work for pay or in volunteer positions to the end of their lives.

Here’s some of the top reasons they gave to justify staying on the job:
  • Keep their mind sharp (72%)
  • Keep themselves from being bored (67%)
  • Make ends meet financially (59%)
  • Socially interact with others (58%)
  • Challenge themselves intellectually (46%)
  • Keep their sense of identity (29%)

The Takeaway: When we meet with clients to review retirement projections, some do tell us they plan to work at least part-time after age 65, and we certainly encourage them to stay active. Research does seem to show that working longer keeps you mentally fit, and those extra dollars can make your retirement nest egg stretch farther and last longer. One tip: if you’re married or in a relationship, talk to your partner about your work and retirement plans so you’re in sync. Some people like to retire at the same time as their partner, while others are happy retiring solo while their partner keeps working.

About Mari Adam

Mari Adam, Certified Financial Planner™ has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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