60+ Workers Slightly Less Likely to Delay Retirement
Category: Retirement Planning
March 5 – An annual CareerBuilder survey shows a slightly more optimistic picture for full-time workers nearing the end of their careers than just a few years agon, when the Recession caused many workers to delay retirement plans or forego them completely. While a majority (58 percent) of workers age 60 or older say they are currently putting off retirement; it represents continued improvement from 61 percent in 2013 and a peak of 66 percent in 2010.
The nationwide survey – conducted by Harris Poll on behalf of CareerBuilder from November 6 to December 2, 2013 among a representative sample of 433 full-time workers (age 60+) and 2,201 hiring and human resources managers – found that 10 percent of workers in this age group feel they’ll never be able to retire, relatively unchanged from 2013 (11 percent). Half (50 percent) say they’ll be able to retire within four years – a slight improvement from 47 percent last year. (Link to Study)
“While achieving a secure retirement is still a challenge for many in the workforce, the survey points to some positive trends,” said Brent Rasmussen, president of CareerBuilder North America. “As retirement funds rebound and the economy improves, fewer workers are delaying retirement than at the height of the recession. Additionally, more workers expect to be able to retire without having to pick up a part time job to supplement their incomes, and even if they are looking for work, more employers are actively recruiting within this age group than in past years.”
Plans to work post retirement
Fewer workers are planning to take on full or part-time work after they retire from their current job. Forty-five percent said they’ll look for work post-retirement—a significant 15 point drop from 2013 (60 percent). This could be a sign mature workers are gaining more confidence in their finances as retirement nears or that better access to health insurance is lessening the need to work before reaching Medicare eligibility.
Among those who do plan on working post-retirement, consulting, retail and customer service work are the most popular disciplines.
Retirement gender gap
Those delaying retirement differs greatly by gender. Women (71 percent) are far more likely to delay retirement than men (49 percent). Eighteen percent of women (age 60+) don’t think they will ever be able to retire, compared to 7 percent of men.
Why are workers delaying retirement?
Economic factors are the most significant roadblocks to retirement, but working late into one’s life is often a voluntary choice, the survey found. The following are the top reasons workers delay retirement:
• I can’t afford to retire financially: 79 percent
• I need the health insurance/benefits: 61 percent
• I enjoy my job: 49 percent
• I enjoy where I work: 46 percent
• I fear retirement may be boring: 27 percent
However…
In contrast to this somewhat good news there is a very interesting MarketWatch article out, “Our Next Big Crisis Will Be a Retirement Crisis“, that predicts an impending retirement crisis – not unlike the heady days of 2005 just before the housing bust that came 2 years later. Main point: people aren’t saving enough and/or working long enough – far too many are going to face a lower standard of living once they retire.
Comments? What are your thoughts and plans for retiring – what time frame are you thinking about, and are your plans for what to do/where to live all set? Please share your concerns with your fellow members in the Comments section below.
Comments on "60+ Workers Slightly Less Likely to Delay Retirement"
Jane says:
As I read that 79% of the survey stated "I can't afford to retire financially", red flags appeared! As a recent retiree and Real Estate Agent of 26 years I can see the next housing crisis lining up. Reverse Mortgages may be the culprit in years to come. I would be interested in the number of people below the age of 80 years of age who have taken a reverse mortgage. Have you noticed the increase of TV, Internet and mail advertising looking to entice Seniors? Targeting seniors with quotes like "and you can keep your home" Sure you can, as long as you continue to physically live there, and can afford to pay all current taxes and insurance. When helping an 83 year old member of our family obtain a reverse mortgage a few years ago the Lender informed us that these loans are really meant for folks in the twilight years and that the average expectancy of a reverse mortgage is only 2-4 years. So while enticing as it may seem for those who are coming up short for retirement, is this truly the answer? When I see 65+ yo friends taking out reverse mortgages so they can travel, buy a new car and spend spend spend, I have to think where will this all lead? Obviously the banks are not in it to lose money and I wonder if we will be seeing a reverse mortgage crisis in 10-15 years as we have seen the mortgage and foreclosure crisis in recent years. What happens when a 65+ lives to be 85+ and is still expecting to draw on a reverse mortgage? I believe there is some sort of limit as I have had the misfortune of having to sell an 80+ yo client's home when the reverse mortgage money ran out. And with the numbers of Boomers out there who may think these advertisements are the answer, the potential number of reclaimed houses could be staggering. Read the fine print, work your numbers thoroughly projecting out for inflation etc and make sure this is the right thing for you. It serves a purpose for a certain clientele, just make sure it is right for you. I welcome comments from those who have a reverse mortgage or anyone else who would like to weight in. thanks :grin:
John H says:
Jane, I agree with everything you say. I've had two relatives who took out reverse mortgages. One worked out well for her, the other not so well. High fees are the problem. My home is payed off and it's tempting to "get some money out of it" - but in my opinion the risks of a reverse mortgage is too high for me. Instead, I'm thinking of downsizing.