It’s no huge mystery why so many people end up delaying retirement. If they have a job, they’re still able to perform, and they haven’t saved enough for a secure retirement, they’ll likely keep working longer.
While some seniors keep working for personal reasons, about six in 10 seniors who work past retirement age say they do so purely for financial reasons—as in they can’t afford to retire.
That’s a key finding of a new survey from St. Louis-based senior living community provider Provision Living, which recently surveyed 1,000 seniors (average age 67) who are still employed to learn more about why they work, how often they work, and their fears about aging in the workplace.
Some of the findings shed light on why many cities across the country have at least 20% or more of their senior population delaying retirement and still in the workforce.
According to respondents, the average retirement savings among seniors who are still working is a paltry $133,108—an amount likely evaporate significantly within the first few years of a full retirement. It’s slightly higher among college-educated seniors ($169,180) and significantly lower for non-college-educated seniors ($80,221).
However, most working seniors (70%) say that Social Security will be their primary source of income after retirement. Social Security was followed by a pension (37%), their 401k (37%), personal savings (27%) and stocks (20%) as the primary sources of income after retirement. And 11% are banking on their children or family to support them financially after they retire.
When it comes to the reasons why seniors are still working, the survey found more than 60% say that the decision is based on finances. Of those, 37% say they simply can’t afford to retire at the moment while 23% say they are staying in the workplace to support their family and 19% say they are still paying off debt.
The remaining 38% say that the decision to delay retirement is a personal matter. Of those, 45% say they still enjoy working, 18% are working to avoid boredom and 6% say that their workplace provides invaluable camaraderie and they would feel too lonely if they stopped working.
The full-time/part-time divide
According to respondents, part-time and full-time workers are nearly split down the middle with 55% saying they work part-time and 45% still working full-time. The average age that working seniors switched to part-time was 61.
What’s more surprising is that one-third of working seniors say they enjoy working and do not wish that they were retired, while 20% said they’d like to continue working, but with fewer hours.
Many seniors say they find it difficult to keep up with the ever-changing and evolving workplace. Nearly half say that physical or mental limitations prevent them from completing tasks. Those limitations have led some seniors to become worrisome about losing their jobs. In fact, 36% say they are fearful of being laid off because of their age and 33% experience “ageism,” or stereotyping because of their age.
So, what’s the outlook for seniors still in the workforce? Well, it appears they aren’t quite ready to leave their desks. According to respondents, the average age working seniors think they’ll retire won’t be until they’re 72.
- SEE ALSO: 25 Cities with the Most Working Seniors
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.