A recent study by Provision Living shows the top reasons why working seniors are delaying retirement. According to the Social Security Administration, the current age to receive full benefits is 66 years old. But many seniors are working rather than enjoying retirement. A previous study by Provision Living listed the cities with the most working seniors. So why do seniors continue to work past retirement age? In order to find out, Provision Living surveyed 1,000 seniors age 65 and older to ask them why they are putting off retirement.
Financial Concerns Lead to Delayed Retirement
Financial concerns are the most common reasons seniors decide to put off retiring. 37% of seniors report that they can’t afford to retire while 23% continue to work in order to support family. 19% are still paying off debt, 13% are paying off a mortgage, and four percent are saving for a big expense.
Personal Reasons
Although finances are a big concern for many working seniors, personal reasons also contribute to delayed retirement. 45% still enjoy working, 18% are working out of boredom, and 16% enjoy their jobs but work part time. 12% report working to fill time and 6% work to combat of loneliness.
Retirement Savings
According to respondents, the average retirement savings among seniors who are still working is $133,108. However, the ideal average savings for working seniors is $800,000. Most working seniors (70%) say that Social Security will be their primary source of income after retirement. Social Security was followed by pension (37%), 401K (37%), personal savings (27%) and stocks (20%) as the primary sources of income in retirement.
So how many working seniors wish to retire? According to the survey, 47% wish they were retired. 33% are happy to continue working, while 20% want to continue working but with reduced hours. Many seniors say they find it difficult to keep up with the ever-changing workplace. Nearly half say that physical or mental limitations prevent them from completing tasks. Due to these limitations, 36% say they are worried about losing their jobs. 33% of respondents report experiencing ageism in the workplace. And despite eligibility for benefits in their early-to-mid-sixties, the average respondent estimates they’ll retire at the age of 72.
As the average retirement age continues to rise, workplaces will need to adapt to the needs of older workers. Companies should have policies in place to combat ageism, as well as part-time and flexible options for those who wish to continue working but with reduced hours.
Wish to supplement your income in retirement but don’t want the typical 8-5 job? Check out our post on jobs for people who want to work from home.
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