The traditional retirement age of 65 has little meaning for Baby Boomers.
Members of the giant demographic wave of Americans born between 1946 and 1964 estimate that the end of their work life will come at an average age of 68, according to a national survey of 400 middle-class members of the Boomer Generation performed through the First Command Financial Behaviors Index®. Almost half of survey respondents said they plan to work into their 70s.
When we asked Baby Boomers why they expect to continue working into their golden years, the current economic turmoil emerged as an obvious factor for many respondents. Some expect they’ll need continued income from part-time work to fund their retirement lifestyle. Other Boomers have sufficient retirement savings, but they want to delay tapping into their nest egg so they can preserve their assets for a retirement that may last 30 years or more. Still others want to maintain valuable workplace benefits like health insurance or are motivated by the lure of discretionary and luxury purchases.
But several of the most common reasons Baby Boomers say they are likely to consider working past retirement have nothing to do with a need for money. Personal fulfillment is a top driver of the desire to keep working. Here is a list of the top seven reasons Boomers give for planning to work during retirement:
Baby Boomers are poised to radically redefine the meaning life after 65. They are a diverse group, and they have a variety of ideas and visions for what they want out of the next stage of their lives. To learn more about how Boomers are planning for their Golden Years (and how a knowledgeable Financial Advisor can help), read “Reinventing Retirement.”
First Command Financial Services and its subsidiaries, including First Command Bank and First Command Financial Planning, assist American families in their efforts to build wealth, reduce debt and pursue their lifetime financial goals and dreams—focusing on consumer behavior as the first and most powerful determinant of results. Through knowledgeable advice and coaching of the financial behaviors conducive to success, First Command Financial Advisors have built trustworthy, lasting relationships with hundreds of thousands of client families since 1958. Compiled by Sentient Decision Science, Inc., the First Command Financial Behaviors Index® assesses trends among the American public’s financial behaviors, attitudes and intentions through a monthly survey of approximately 1,000 U.S. consumers aged 25 to 70 with annual household incomes of at least $50,000. Results are reported quarterly. The margin of error is +/- 3.1 percent with a 95 percent level of confidence. www.firstcommand.com/research Sentient Decision Science was commissioned by First Command to compile the Financial Behaviors Index®. SDS is a behavioral science and consumer psychology consulting firm with special vertical expertise within the financial services industry. SDS specializes in advanced research methods and statistical analysis of behavioral and attitudinal data. First Command Financial Services, Inc., is the parent of First Command Financial Planning, Inc. (Member SIPC, FINRA), First Command Insurance Services, Inc. and First Command Bank. Financial planning services and investment products, including securities, are offered by First Command Financial Planning, Inc. Insurance products and services are offered by First Command Insurance Services, Inc. in all states except Montana, where as required by law, insurance products and services are offered by First Command Financial Services, Inc. (a separate Montana domestic corporation). Banking products and services are offered by First Command Bank. Securities products are not FDIC insured, have no bank guarantee and may lose value. A financial plan, by itself, cannot assure that retirement or other financial goals will be met. In Europe, investment and insurance products and services are offered through First Command Europe Limited. First Command Europe Limited is a wholly owned subsidiary of First Command Financial Services, Inc. and is authorised and regulated by the Financial Services Authority. Certain products and services offered in the United States may not be available through First Command Europe Limited.