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Why Work When You Can Retire?

Two common financial reasons Americans work beyond retirement age are high debt and the concern of running out of money. Home loans with low down payments and large mortgages have led to a generation with higher pre-retirement debt levels than ever before. 1


Nearly half of people between the ages of 62 and 66 keep working because they don’t think they’ve saved enough to provide retirement income for the rest of their lives. Interestingly, the people retiring later tend to be better educated, have fewer children and a higher divorce rate. Furthermore, an increasing number of women in their 50s and 60s say they plan to work past age 65.2


However, there are some positive aspects to working longer apart from money concerns. For example, research shows that people who work longer tend to score higher on memory tests. Retirees from European countries offering government-sponsored benefits at an earlier age tended to score lower on these tests than Americans of the same age. This seems to indicate that the ongoing mental stimulation at a job could help older people retain cognitive faculties longer than immediately retiring.3


Studies also show that holding a job outside the home lends itself to larger, more active social networks, contributing to better health and sense of wellbeing. If you have questions or concerns about your financial strategy, give us a call and we’ll be happy to set up a time to talk through your unique situation.4

Content prepared by Kara Stefan Communications
1 Paola Scommegna. Population Reference Bureau. April 23, 2018. “Will More Baby Boomers Delay Retirement?” https://www.prb.org/will-more-baby-boomers-delay-retirement/ . Accessed May 25, 2018.
2 ibid
3 Paola Scommegna. Population Reference Bureau. April 23, 2018. “Is Working Longer Good for Older Americans’ Health?” https://www.prb.org/is-working-longer-good-for-older-americans-health/. Accessed May 25, 2018.
4 ibid

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