More than half of Americans — about 58% — say they’d consider working after retirement and are open to working indefinitely, including 64% of Baby Boomers and Gen X workers, according to a Sept. 20 report from Empower, a financial planning and investing firm.
However, the motivations aren’t purely financial, with values such as personal fulfillment and a sense of purpose being weighted about the same as potential financial needs.
“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,” Nik Franklin, a senior financial advisor at Empower, said in a statement.
“Defining the ideal retirement is individual and comes down to priorities, values and goals — both financial and personal,” Franklin said.
Looking ahead, survey respondents said they remain concerned about economic factors that could affect their retirement and financial future, such as inflation, insufficient savings and unexpected expenses. Slightly fewer pointed to healthcare costs and housing affordability.
In addition, nearly 2 in 5 survey respondents said working post-retirement would help them maintain a daily routine and keep their minds and bodies active. About 22% want to relocate to another state in retirement, and 10% said they’d like to move to another country.
In recent years, more retirees have been heading back to work or “unretiring,” according to a Resume Builder poll. About 1 in 5 return to a previous employer, another 1 in 5 return to the same industry and the rest work in a new industry.
Although rising costs play a major role in the decision to work longer or return to work, financial need isn’t the only reason, according to a report from Easterseals and Voya Cares. “Employment extenders” — or those working past the traditional retirement age — said work gave them a sense of purpose and they wanted to keep their minds active.
Some employers have hired back retirees or recruited workers near retirement age to help fill the talent gap. For company leaders and HR professionals, these retirement trends and economic concerns may also play into recruitment and retention strategies. For instance, employee experience programs may consider goals that align with personal fulfillment and a sense of purpose, and benefits programs may incorporate financial factors and wellness priorities for employees of all ages.