Americans plan to work during traditional retirement years

Don’t expect Gen X and Y to be spending much time with the grandkids.

According to an online survey of 860 investors, almost seven out of 10 people between 21 and 50 plan to work either part time or full time during what are traditionally considered their retirement years.

Almost three-quarters of those who said they intend to work will do so to stay active and involved, while the remainder said they will continue because their savings will be insufficient. The survey was conducted in December by Harris Interactive for T. Rowe Price Group Inc.

Among those surveyed, the mean age for expected retirement is 62. They expect to spend 22 years in retirement, and most (77%) expect taxes to rise by the time they stop working.

Christine Fahlund, a senior financial planner with T. Rowe Price, said that identifying a possible shortfall in retirement savings early is good, but not enough.

“Now is the time to take the bull by the horns and do something about it,” she said.

She also thinks that many young investors are being overly ambitious about their post-retirement work plans; they could easily find themselves less inclined to work as they get older.