Whether due to economic factors or simply a desire to keep busy, more Americans are deciding that retirement for them will include some sort of work, either paid or unpaid.
Baby Boomers are healthier, have longer lifespans and are more likely to need costly long-term care than previous generations. For many, working in retirement provides the opportunity for a “second act” or a chance to try out a new job that’s more flexible, less demanding or more interesting than a previous career.
Nearly 40 percent of future retirees plan to work longer by choice, with top drivers including the enjoyment of their career, the desire for disposable income and the prevention of boredom.
Even for those earning a decent paycheck in their second act, often the goal is not saving for retirement but instead putting off drawing down one’s retirement funds or tapping Social Security. The longer you can hold off on claiming Social Security, the more valuable it becomes. A worker who is eligible for $24,000 per year at his full retirement age of 65 would get more than $31,000 per year by waiting until age 70, according to an analysis by Merrill Edge.
Plus, those over 65 can get health benefits via Medicare, so they don’t need to find an employer that provides health benefits. That makes the realm of potential retirement jobs far broader.