For many older Americans, retirement will mark the end of their current career, but not necessarily the end of their working life.
Findings of a
recent AARP Works & Jobs Study reveal that almost one-third of respondents between the ages of 40 and 64 anticipate that they will continue working post-retirement, and almost half of those working Americans plan to seek employment in new fields of work, specifically in sports, creative, hospitality and education fields.
“We are most impressed that so many people want to work much longer and say they enjoy work, finding it interesting and challenging,” said AARP Senior Vice President Jean Setzfand. “Work is the new retirement.”
The trend of older Americans staying in the workforce has skyrocketed over the last three decades, and so has the percentage of older Americans in the workforce.
“In 1985, a little more than 10% (10.8%) of those 65 and older were working, and that figure has gone up steadily over the years,” Ms. Setzfand said. “By this past July, the percentage across the country reached 18.6% and no one would be surprised if the total reaches 20% — one in five older Americans — down the road.”
The Bureau of Labor Statistics projects that 31.9% of workers ages 65 to 74
will stay in the workforce in 2020, compared to 20.4% of the same age bracket in the workforce in 2002.
The study finds that an overwhelming majority (68%) of respondents plan to retire at 65 or older before they will attempt the transition to part-time work. These workers expect to work for someone else, as opposed to working as a contractor or starting their own business.
Jamie Cox, financial adviser and managing partner at Harris Financial Group/CBH Holdings in Richmond, Va., said that this is a highly common occurrence: “This is the case for maybe one in 10 of clients I talk to.”
Many of Mr. Cox's clients and colleagues have entered the workforce in a different industry post-retirement and have often found it more satisfying than their former careers. This reality, he believes, points to a glaring misconception about older Americans in the workforce.
“A lot of people think if you're working in retirement, then you're broke,” he said. “That's not the case for so many working Americans.”
Though he admits that financial necessity can often lead older Americans to work in their later years, Mr. Cox hasn't found it to be the dominant force in post-retirement employment since the 2008
recession era.
“Now the overwhelming majority I work with work because they want to, because they can and because they love what they're doing,” Mr. Cox said.
Most survey respondents cited income, benefits, schedule and work-life balance as most enjoyable aspects of their current careers. The study indicates that many are looking for a post-retirement working lifestyle that is flexible, lucrative, offers travel opportunities and has charitable aspects to it.
This characterization describes several of Mr. Cox's clients, many of whom return to work in education fields such as teaching and driving school buses.
“Do they find it to be a social reward? Yes,” he said. “My clients often work jobs that people don't normally aspire to but can be very important and rewarding in their later life.”
This survey was conducted online from July 27 to Aug. 3, 2015, among full-time American adult workers aged 40 to 64. Results were based on 4,975 completed surveys.
