4 Reasons Why Many are Considering Unretirement
Will my retirement income be enough? Will I be able to sustain my standard of living? How will I protect my savings? What will I be doing with my time?
These, and other questions, certainly keep some up at night. And for those unable to find solutions, retirement may not be an option. Many individuals are remaining in the workforce longer, and some are choosing to unretire and re-enter the workforce.
Many potential retirees are ill-equipped to retire due to insufficient savings
With increasing longevity, many people are rightly worried about a retirement savings gap – whether their savings and retirement income will be enough to last throughout their retirement. According to the Social Security Administration data, about one out of every three 65-year-olds today will live past age 90, and about one out of seven will live past age 95.
Additionally, the World Economic Forum approximated the retirement savings gap to be $28 trillion in 2015. That’s trillion with a “T”. By 2050, it is expected to increase to $137 trillion.
Not only are seniors faced with a longer time horizon for retirement, but many are also challenged by the savings gap resulting from higher expenses and lack of accumulated funds.
Seniors value work as a social network source
Retirement is a major change, and loneliness is often one result of not continuing the daily routine of interacting with coworkers or maintaining client relationships.
The U.S. Census Bureau states that 11 million, or 28% of people over age 65, lived alone at the time of the census. Working helps to combat isolation and loneliness that could have significant impact on seniors needing social contacts or help with underlying health issues.
Staying mentally sharp to combat aging-related cognitive decline
Everyone is aware that age brings many changes, including the decline in the ability to recall certain things. Several activities are recommended to preserve mental acuity, including dancing, exercise, maintaining a healthy diet, and continuing to work.
While working may not prevent cognitive decline, it could, however, potentially decelerate the inevitable consequences.
Working because they love their job
Lastly, seniors are choosing to continue employment simply because they love their job. Work can provide purpose, fulfill passions, and help maintain vibrancy.
Everyone's exact circumstances are different, but it's important to look at the big picture when determining whether unretirement is right for you. Consider reaching out to a financial advisor where you keep your savings and/or retirement for financial guidance. If the lack of social interaction is a bigger factor, consider finding volunteer opportunities or hobby groups in your area.