September data from the Bureau of Labor Statistics shows that 60 percent of workers 65 and older have full-time jobs, up from 55 percent in September 2007.
Nearly three out of four pre-retirees over the age of 50 see themselves working in new, more flexible and fulfilling ways as part of their retirement, and considering that half of current retirees have worked or have planned to work, it looks like working after 65 will be increasingly common, concludes a landmark study by Merrill Lynch and Age Wage that explores and challenges commonly held beliefs about work during retirement.
Why do Americans increasingly want to work later in life?
Economists believe that it is natural to work longer if you live longer, says Jonnelle Marte, a reporter at the Washington Post who wrote “The anti-retirement plan: Working 9-to-5 past 65.” In her article she points to statistics from the Social Security Administration – one in four people age 65 will live after 90, and one in 10 will live past 95.
In addition to longer life expectancy, which today means a retirement that can last 20 or more years, the Merrill Lynch study points to three other reasons:
- Elimination of pensions for most workers, which has forced people to take responsibility for funding their own retirement;
- Recent economic uncertainty that have served as a wake-up call for many;
- Shifting attitudes of a new generation of retirees seeking greater purpose and more social engagement.
The study also debunked popular myths about retirement:
- Myth 1: Retirement means the end of work;
- Myth 2: Retirement is a time of decline – more than 80 percent of retirees say that working after retirement is an antidote to aging;
- Myth 3: People work in retirement because they need more money – working retirees were twice as likely to say they work to stay mentally active (62 percent) than to say they work to make money (31 percent);
- Myth 4: New career ambitions are for the young – the survey found that retirees are three times more likely than younger workers to be entrepreneurs.
“This study turns conventional wisdom on its head,” said Andy Sieg, head of Global Wealth and Retirement Solutions for Bank of America Merrill Lynch. “By embracing these new realities and attitudes toward work in retirement, everyone from policy makers to employers and the financial industry will be better equipped to help people pursue their goals.”
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Tags: retirement work, work after retirement, work in retirement
