Retirement Planning: Why Are Nearly Two-Thirds of Boomers and Gen X Open to Working ‘Indefinitely’? (It’s More Than Money)

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Long before retirement planning became its own mega-industry, inventor Thomas Edison reportedly had this to say about leaving the workforce: “I’ll retire the day before my funeral.” A century or so later, many American workers seem to have adopted a similar mindset, with a large percentage now weighing the possibility of never retiring.

A recent survey of more than 1,000 U.S. adults conducted by financial services company Empower found that more than half (58%) of respondents say they might be in the job market post-retirement and are “open to working indefinitely.” That percentage rises to 64% for baby boomers and Gen Xers.

Much, but not all, of the reason has to do with money. Of those who could see themselves never retiring, many are motivated by values such as personal fulfillment (41% of respondents) and having a sense of purpose (37%). Those percentages are about the same as respondents motivated by financial needs (40%).

There’s no question that retirement fears still weigh heavily on the minds of many Americans — and not just those who are already struggling financially, either. Research conducted earlier this year by Natixis Investment Managers found that nearly half (46%) of affluent U.S. investors (those with at least $100,000 in investable assets) feel inflation is “killing their dreams” for retirement.

You could fill a small library with all the research that reveals angst over retirement preparedness. About one-third of Americans in a GOBankingRates survey said they have less than $100 in retirement savings. About one-third (34%) of younger millennials ages 25 to 34 haven’t even started saving yet.

Another survey conducted by the Transamerica Center for Retirement Studies found that roughly half of boomers are either currently working, expect to work past age 70 or don’t plan to retire at all, mainly because of financial worries.

Americans surveyed by Empower cited these as the top fears concerning retirement:

• Inflation: mentioned by 52% of respondents
• Insufficient savings or running out of money: 51%
• Unexpected expenses: 49%
• Healthcare costs: 44%
• Affordability of housing: 37%

To financially prepare for retirement, most of the respondents (56%) cited 401(k)s as the top way to save for retirement. Among the other highlights:

• Nearly one in four Americans (22%) said they want to relocate to another state in retirement, and 10% would like to move abroad.
• The five most popular states for retirement are Florida, New York, California, Colorado and Texas. The most popular countries are Italy, Thailand, Japan, Mexico and Barbados.
• The top factors in choosing a retirement locale are cost of living (55% of respondents), climate (50%) and proximity to loved ones (41%).
• About one-third (32%) plan to stay put post-retirement, including half of boomers.

As for those with either no plans to retire or designs on working well into their senior years, about half (49%) of respondents said they prefer to work remotely. Another 34% said they are OK with a hybrid situation, while only 17% are willing to go into an office regularly.

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