Many workers are staying on the job longer or plan to before going into their golden years.
More retirees said they retired at ages 66-69, rising from 11% in 2021 to 14% in 2022, according to the latest annual survey by the Employee Benefit Research Institute (EBRI) and Greenwald Research.
And 7 in 10 workers expect to work for pay as a source of their retirement income, and 1 in 5 are counting on it as a major source, according to the EBRI poll. A growing percentage of workers say they will never retire – 15% in 2022, up from 10% in 2021, according to the EBRI survey.
Unfortunately, expectations of working in retirement can backfire. For workers who plan to work in some fashion for pay after they retire, that desire still appears to be more of a nice notion than a reality. Only 27% of retirees have employment income, according to the EBRI poll.
‘Sad commentary that health insurance has to be such a big factor’
That desire to remain employed is backed up by other recent surveys. More than half of workers (57%) plan to work in retirement citing a variety of reasons ranging from the income to keeping their brains alert, or the social connection, according to the most recent study by the nonprofit Transamerica Center for Retirement Studies.
The specter of soaring medical costs alone is stomach-churning. The average couple age 65 retiring this year and enrolled in Medicare may need approximately $315,000 saved (after tax) to cover healthcare expenses in retirement, according to the Fidelity Retiree Health Care Cost Estimate.
That’s what motivated Russ Eanes, an author, to get back in the workforce after retiring five years ago from his job as chief executive at MennoMedia, a book publisher. A year ago, he went back to work at GetSetUp, an interactive website that delivers virtual education to older adults.
The impetus: A steady paycheck and access to a health insurance plan.
“It’s a sad commentary that health insurance has to be such a big factor in these decisions,” Eanes told Yahoo Money.. “I’m on Medicare as of February, but my wife is a year behind, so we have to scramble to figure out how to have her covered for another year. While I was making out okay as a freelancer, it can be feast or famine.”
Older workers are not always ‘proactive’
But getting back to work or staying employed is not always easy, and in some cases, it can be the workers themselves who short-change their ability to stay on the job longer.
“Many 50+ workers are not proactive about taking steps to help ensure they can work as long as they want and need,” Catherine Collinson, CEO and president of nonprofit Transamerica Institute and Transamerica Center for Retirement Studies, told Yahoo Money. “Among those employed by for-profit companies, our research showed that only 62 % are focused on staying healthy so they can continue working and just 44% are keeping their job skills up to date.”
Only a small percentage are networking and meeting new people (16%), taking classes to learn new skills (12%), scoping out the employment market and opportunities available (10 %), attending virtual conferences and webinars (9%), or obtaining a new degree, certification, or professional designation (5 %), Collinson said.
Meantime, more than 2 in 5 workers expect a gradual transition to retirement, according to the EBRI survey.
In reality, “only a fraction of companies offer employees the option of a phased retirement,” Collinson said. “Our most recent employer survey finds 27% of employers offer a formal phased retirement program.”
Forced retirements
Even more troubling– nearly half of retirees retired earlier than they planned.
“Back-to-work plans can be upended by unexpected health challenges and caregiving demands,” Nancy Collamer, a retirement coach and author of “Second-Act Careers: 50+ Ways to Profit from Your Passions During Semi-Retirement,” told Yahoo Money.
The median expected retirement age for workers — age 65 — and the reported retirement age of retirees —age 62, according to the EBRI survey. Two-thirds said their early retirement was for a reason out of their control, such as a health problem or disability, company downsizing or reorganizations, or caregiving for a loved one.
Some of those reasons were amplified by the pandemic.
Since March 2020, 1.1 million more Americans between the ages of 55 and 74 retired earlier than what would have been expected during normal times, according to a recent report from The New School’s Schwartz Center for Economic Policy Analysis. The number of those who retired involuntarily a year after losing a job was 10 times higher than pre-pandemic times, the report found.
‘Beginning to feel the impact of inflation’
This trend may be shifting. As of March 2022, 3.2% of workers who were retired just one year ago are now employed again, according to research by Nick Bunker, the director of economic research at Indeed Hiring Lab.
One caveat: while the EBRI Retirement Confidence Survey was conducted as the inflation rate had already begun its rapid rise, and at that time, the majority of workers and retirees reported being confident that they had enough money to keep up with inflation in retirement, the economic picture is grimmer now.
With the inflation rate at 8.3% in April of 2022, down slightly from 8.5% in March, which was the highest since December of 1981, and the S&P 500 index off its January peak by 16.6%, that exuberance may be fading.
“Some workers are beginning to feel the impact of inflation, and the number is likely to grow,” Copeland said. “How the economy evolves over the next few months is likely to result in workers reconsidering where they stand regarding retirement. If inflation continues at historic rates and the stock market continues falling, more workers will be reevaluating their retirement plans.”
By:
Kerry is a Senior Columnist and Senior Reporter at Yahoo Money. Follow her on Twitter @kerryhannon
Source: Working in retirement often is more a dream than reality
More contents:
- What Is Intergenerational Solidarity, And Why Does It Matter For The French – And For Us?”.
- How Do Pension Funds Work?”.
- “Plan Assets”
- “Securing Employer-Based Pensions: An International Perspective”.
- Foreign pension plans, 1985: the new rules under IRC section 404A.
- Foreign Pension Plans, 1985: The New Rules Under IRC Section 404A.
- Taxes International.
- Internal Revenue Cumulative Bulletin.
- Federal Register.
- Proposed regulations under Section 404A of the Internal Revenue Code.
- Germany’s CTA does pensions the UK way”
- Contractual Trust Arrangements | Deloitte Legal”.
- Foreign Pension Plans, 1985: The New Rules Under IRC Section 404A.
- More Remote Working Apps:https://quintexcapital.com/?ref=arminham Quintex Capital
https://www.genesis-mining.com/a/2535466 Genesis Mining
http://www.bevtraders.com/?ref=arminham BevTraders
https://www.litefinance.com/?uid=929237543 LiteTrading
https://jvz8.com/c/202927/369164 prime stocks
https://jvz3.com/c/202927/361015 content gorilla
https://jvz8.com/c/202927/366443 stock rush
https://jvz1.com/c/202927/373449 forrk
https://jvz3.com/c/202927/194909 keysearch
https://jvz4.com/c/202927/296191 gluten free
https://jvz1.com/c/202927/286851 diet fitness diabetes
https://jvz8.com/c/202927/213027 writing job
https://jvz6.com/c/202927/108695 postradamus
https://jvz1.com/c/202927/372094 stoodaio
https://jvz4.com/c/202927/358049 profile mate
https://jvz6.com/c/202927/279944 senuke
https://jvz8.com/c/202927/54245 asin
https://jvz8.com/c/202927/370227 appimize
https://jvz8.com/c/202927/376524 super backdrop
https://jvz6.com/c/202927/302715 audiencetoolkit
https://jvz1.com/c/202927/375487 4brandcommercial
https://jvz2.com/c/202927/375358 talkingfaces
https://jvz6.com/c/202927/375706 socifeed
https://jvz2.com/c/202927/184902 gaming jobs
https://jvz6.com/c/202927/88118 backlink indexer https://jvz1.com/c/202927/376361 powrsuite
https://jvz3.com/c/202927/370472 tubeserp
https://jvz4.com/c/202927/343405 PR Rage
https://jvz6.com/c/202927/371547 design beast
https://jvz3.com/c/202927/376879 commission smasher
https://jvz2.com/c/202927/376925 MT4Code System
https://jvz6.com/c/202927/375959 viral dash
https://jvz1.com/c/202927/376527 coursova
https://jvz4.com/c/202927/144349 fanpage
https://jvz1.com/c/202927/376877 forex expert
https://jvz6.com/c/202927/374258 appointomatic
https://jvz2.com/c/202927/377003 woocommerce
https://jvz6.com/c/202927/377005 domainname
https://jvz8.com/c/202927/376842 maxslides
https://jvz8.com/c/202927/376381 ada leadz
https://jvz2.com/c/202927/333637 eyeslick
https://jvz1.com/c/202927/376986 creaitecontentcreator
https://jvz4.com/c/202927/376095 vidcentric
https://jvz1.com/c/202927/374965 studioninja
https://jvz6.com/c/202927/374934 marketingblocks https://jvz3.com/c/202927/372682 clipsreel
https://jvz2.com/c/202927/372916 VideoEnginePro
https://jvz1.com/c/202927/144577 BarclaysForexExpert
https://jvz8.com/c/202927/370806 Clientfinda
https://jvz3.com/c/202927/375550 Talkingfaces
https://jvz1.com/c/202927/370769 IMSyndicator
https://jvz6.com/c/202927/283867 SqribbleEbook
https://jvz8.com/c/202927/376524 superbackdrop
https://jvz8.com/c/202927/376849 VirtualReel
https://jvz2.com/c/202927/369837 MarketPresso
https://jvz1.com/c/202927/342854 voiceBuddy
https://jvz6.com/c/202927/377211 tubeTargeter
https://jvz6.com/c/202927/377557 InstantWebsiteBundle
https://jvz6.com/c/202927/368736 soronity
https://jvz2.com/c/202927/337292 DFY Suite 3.0 Agency+ information
https://jvz8.com/c/202927/291061 VideoRobot Enterprise
https://jvz8.com/c/202927/327447 Klippyo Kreators
https://jvz8.com/c/202927/324615 ChatterPal Commercial
https://jvz8.com/c/202927/299907 WP GDPR Fix Elite Unltd Sites
https://jvz8.com/c/202927/328172 EngagerMate
https://jvz3.com/c/202927/342585 VidSnatcher Commercial
https://jvz3.com/c/202927/292919 myMailIt
https://jvz3.com/c/202927/320972 Storymate Luxury Edition
https://jvz2.com/c/202927/320466 iTraffic X – Platinum Edition
https://jvz2.com/c/202927/330783 Content Gorilla One-time
https://jvz2.com/c/202927/301402 Push Button Traffic 3.0 – Brand New
https://jvz2.com/c/202927/321987 SociCake Commercial https://jvz2.com/c/202927/289944 The Internet Marketing
https://jvz2.com/c/202927/297271 Designa Suite License
https://jvz2.com/c/202927/310335 XFUNNELS FE Commercial
https://jvz2.com/c/202927/291955 ShopABot
https://jvz2.com/c/202927/312692 Inboxr
https://jvz2.com/c/202927/343635 MediaCloudPro 2.0 – Agency
https://jvz2.com/c/202927/353558 MyTrafficJacker 2.0 Pro+
https://jvz2.com/c/202927/365061 AIWA Commercial
https://jvz2.com/c/202927/357201 Toon Video Maker Premium
https://jvz2.com/c/202927/351754 Steven Alvey’s Signature Series
https://jvz2.com/c/202927/344541 Fade To Black
https://jvz2.com/c/202927/290487 Adsense Machine
https://jvz2.com/c/202927/315596 Diddly Pay’s DLCM DFY Club
https://jvz2.com/c/202927/355249 CourseReel Professional
https://jvz2.com/c/202927/309649 SociJam System
https://jvz2.com/c/202927/263380 360Apps Certification
https://jvz2.com/c/202927/359468 LocalAgencyBox
https://jvz2.com/c/202927/377557 Instant Website Bundle
https://jvz2.com/c/202927/377194 GMB Magic Content
https://jvz2.com/c/202927/376962 PlayerNeos VR