Retirement Savings: Almost 50% of Boomers Expect To Work Past 70 — 14 Reasons Why
Written by
Josephine Nesbit
Edited by
Nicholas Morine
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Each day, thousands of baby boomers born between 1946 and 1964 are entering retirement age. Nearly 29 million boomers retired in 2020 — 3 million more than in 2019 — and the youngest boomers will reach full retirement age in 2031, according to data from J2T Recruiting. But new disruptions after the pandemic have changed the retirement landscape, and more baby boomers expect to work longer than originally anticipated.
According to a survey conducted by the Transamerica Center for Retirement Studies, approximately 49% of baby boomers are currently working, expect to work past the age of 70, or do not plan to retire. The study noted that baby boomers are especially vulnerable to employment risks, volatility in the financial markets and inflation — all of which could disrupt retirement plans.
The majority of baby boomer respondents (83%) said their reasons for doing so are financial-related, followed by healthy-aging reasons (77%). The top financial reason was wanting the extra income (64%), while the top health-aging reasons were wanting to remain active (56%) and “to keep my brain alert” (51%).
Another commonly cited financial reason was concern over Social Security benefits being less than expected (35%) and not being able to afford retirement (34%).
This isn’t surprising, considering Social Security faces a financial shortfall that currently will only be able to cover 80% of benefits by 2034 — unless Congress takes action, according to the Social Security Administration. Additionally, more than two-fifths of baby boomers are nearing retirement with no retirement savings, The Hill reported. Only 58% of boomers between the ages of 55 and 64 own retirement accounts.
The study uncovered additional concerns that baby boomers face and younger generations face. Here’s why baby boomers expect to delay retirement past age 70:
- Financial reasons (83%).
- Healthy-aging reasons (77%).
- Want the income (64%).
- Be active (56%).
- Keep my brain alert (51%).
- Enjoy what I do (47%).
- Have a sense of purpose (42%).
- Concern that Social Security will be less than expected (35%).
- Can’t afford to retire because I haven’t saved enough (34%).
- Need health benefits (26%).
- Maintain social connections (28%).
- Volatility in financial markets and investment performance (18%).
- Personal development (12%).
- Concern employer retirement benefits will be less than expected (10%).
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