Retirement: To Postpone Or Not To Postpone?

Retirement: 
Number of Senior Workers Delaying Retirement Reaches New Post-Recession Low

When to retire is a weighty decision for many. It depends on how much money one has saved for retirement, health issues (whether one can physically continue to work), and many other concerns. Another issue is Social Security, the earlier one retires the smaller monthly payments they’ll receive. However, according to CareerBuilder’s annual retirement survey, the number of workers age 60 or older currently delaying retirement reached a post-recession low of 53 percent. This number is down from 58 percent in the previous year and 66 percent in 2010.

The most popular age to claim Social Security payments is age 62, the earliest possible age you can sign up. However, the proportion of people signing up for Social Security at age 62 has been declining since the mid-1990s, according to the Center for Retirement Research (CRR) at Boston College analysis of Social Security Administration data. Some 48 percent of women and 42 percent of men signed up for Social Security at age 62 in 2013, down from around 60 percent of women and 55 percent of men in 2005, CRR found.

Social Security payments are reduced if you claim them before your full retirement age, which is typically age 66 or 67, depending on your birth year. If you sign up at age 62, you will get 25 percent smaller monthly payments if your full retirement age is 66 and 30 percent smaller payments if your full retirement age is 67. For example, a worker who would be eligible for a $1,000 monthly Social Security benefit at his full retirement age of 66 would get just $750 per month if he signs up for Social Security at age 62. This is one reason many seniors have postponed retirement.

Results according to Career Builder’s annual retirement survey found:

• 53 % of workers (age 60+) are currently delaying retirement, down from 66 percent in 2010

• 54 % of workers (age 60+)  say they will work part or full-time after retirement

• 54 % of employers hired mature workers in 2014, up from 48 percent in 2013
 

The nationwide survey was conducted by Harris Poll on behalf of CareerBuilder from November 4 to December 2, 2014, among a representative sample of 438 full-time workers (age 60+) and 2,192 hiring and human resources managers.

“As household financial situations continue to rebound from the recession, economic confidence among senior workers is significantly improving,” said Rosemary Haefner, chief human resources officer for CareerBuilder. “Reaching retirement, however, is proving to be a challenge for millions. Fortunately, for those workers needing a new job near the end of their careers, employers are hiring seniors at a faster rate than we’ve seen in recent memory.”

 

Other key findings of the CareerBuilder survey found:

1.  Retirement still far off or unlikely for many.
--  75 % of workers age 60 or older currently delaying retirement cite the recession as a cause
--  12 % don’t think they will ever be able to retire – up slightly from 11 % last year
--  and nearly half (49 %) feel retirement is at least 5 years out.   

2.  More than half of workers plan to work post-retirement.
54 % of senior workers (age 60+) say they’ll work after retiring from their current career – up from 45 percent last year

Of this group:
  --  81 % say they’ll most likely work part-time
  --  19 percent plan to continue working full-time.
Customer service, retail and consulting are the three most common jobs these workers plan to pursue.

Meanwhile, one in six workers age 60 or older say they are taking this time in their life to pursue a dream job or passion project.

3.  Employers continue to hire more mature workers.
For seniors out of work or planning to work post-retirement, the job search may be getting easier.
54 % of private sector employers hired mature workers (age 50+) in 2014 – up six points from last year’s 48 percent – and 57 percent plan to do so in 2015.

4.  Reasons for delaying retirement vary.
At 78 percent, the inability to retire due to household financial situations is the clear number one reason senior workers delay retirement. The need for health insurance and benefits follows at 60 percent.

However, many senior workers simply don’t want to stop working. One third of workers (age 60+) delaying retirement aren’t calling it quits because they enjoy their job; 28 percent are delaying retirement because “they enjoy where they work” and 26 percent “fear retirement may be boring.”

5.  Plans of those not working post retirement are centered on self and family.
A vast majority of senior workers not planning to work post-retirement intend to focus on relaxation (70 percent) and spending time with family and friends (57 percent).

Other plans include:

• Traveling – 48 %
• Taking up a hobby/spending more time on a hobby – 44 %
• Volunteering – 36 %
• Exercise – 36 %
• Renovating home – 8 %
• Mentoring – 5 %
• Going back to school – 3 %

Whether to postpone retirement or not is a personal decision guided by each individual’s particular circumstances.
There’s no right or wrong way to do it. You need to decide what is right for you.

 

BLOG Date: Thursday, October 8, 2015
Writer: Ryan Allen