As many Americans approach retirement age, they must begin to seriously think about their future. Time is running out, and they have to begin to actually confront the fact that they may not be able to work full time anymore. However, does that mean that they have to stop working completely?
According to a survey by Bankrate, that is not the case at all. Only a quarter of Americans surveyed said that they plan to completely retire and not work at all. 62% of those that plan to work after retirement, said that it was due to financial motivation.
Semi-retirement might be the right move for many as they head into their golden years. In fact, your golden years may be longer than expected.
The United Nations reported that the life expectancy of an American adult is higher than it has ever been in history and will only continue to rise. This is due to many factors, but the most influential are advances in science and technology in healthcare as well as universal health coverage in the last century. The percentage of Americans over the age of 65 will increase from just 8% in 1950 to over 20% of the population by the year 2050 -- a huge jump. If you are living longer, that means your retirement savings will have to last longer than originally anticipated.
One thing to bear in mind if you are planning on working through rather than entering your retirement, is that research shows that 53% of retirees had to retire earlier than expected due to health reasons, and they were no longer able to work at their old jobs and so were forced into retirement. Semi-retirement is one thing, but believing you will never retire is something else entirely. Some may be able to work into their eighties, but that certainly will not be the average American.
Setting goals for your retirement or semi-retirement is wise. Find something that will be enjoyable if possible that gets you involved in a community or group. For some retirees, the period can be frustrating and can even lead to depression, according to the Institute of Economic Affairs. In fact, they state that retirement increases the risk of clinical depression by approximately 40%!
Semi-retirement may be the answer to financial as well as mental health concerns. Staying active and busy while still helping to provide money through the golden years could be the best idea.
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