More Baby Boomer and Generation X workers are open to working post-retirement—but the reasons aren’t purely financial.
New research from Empower finds working retirees are receptive to getting back into the job market, either because they value personal fulfillment (41%) or want a sense of purpose (37%).
The data, which surveyed 1,009 Americans in defined contribution (DC) plans, finds that nearly two in five Americans say working post-retirement would help them maintain a daily routine (37%) and keep their minds (37%) and bodies active (36%).
According to Empower, respondents say allocating to a 401(k) account is the top way to save for retirement (56%), followed by stocks (35%) and a traditional savings account (34%). Additionally, for people ages 60 to 65, the average 401(k) account balance is $198,194.
“Having clearly defined personal goals — including when you want to retire — can help determine how much you should have saved, and the steps you can take to help optimize your investments,” says Nik Franklin, CFP, a senior financial advisor at Empower, in a statement. “Defining the ideal retirement is individual and comes down to priorities, values, and goals — both financial and personal. Getting a handle on your overall net worth is a concrete action to help see where you stand, and where to go.”
The new data comes as other recent reports spotlight an overall trend in going back to work. The latest study from T. Rowe Price found that many retirees believe part-time work is a good transition strategy, with 57% of retirees wanting to continue working in some form.
Still, respondents remain concerned over current economic factors that could impact their financial futures, like inflation (52%), running out of money (51%), and unexpected expenses (49%). Another 40% say they went back to work for financial needs.
As a result, some Americans are choosing to relocate to another state in retirement (22%), and 10% say they would like to move abroad. Among the top states for retirement included Florida, New York, California, Colorado, and Texas.
One-third of respondents (32%) and 50% of Boomers plan to stay put post-retirement.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.