Never Retire!

Never Retire! – Do you want to keep working past retirement age? If senior employees can retain the physical and mental capacity, and attractive work opportunities are open, they themselves can benefit and society at large can benefit from the experience of an older generation.

Reasons not to hang up your hat

There are economic and emotional reasons to continue working, full or part time, past current standard age thresholds.

On the less fortunate side are those in their fifties and sixties with insufficient funds to retire. Recall Aesop’s fable of the ant and the grasshopper: failure to plan carefully and sock away enough during earning years might leave a gaping hole. According to Fidelity, prospective retirees need about $287,400 in the bank by the age of 60, yet the median household has only saved about 40% of that sum. It is sobering that 27% have less than $50,000 in retirement savings, while 16% have none. Millennials, who start earlier than Boomers to fund their savings, are doing a bit better, with around $70,000 earmarked for retirement.

Needs vary, depending on the type of lifestyle desired, as well as the increasing cost of living. Inflation and rampant price increases compound the dread of outliving savings, which is also known as longevity risk. A long life may be a blessing, but a poverty-stricken old age is a frightening prospect. Every year of work now will reduce the retirement period during which the nest egg must produce income. Assess your own longevity risk, by considering your health and how long your close family members have lived.

On the positive front, there are compelling motivations to keep on working. Foremost comes job satisfaction, involving a sense of personal pride in professional competence, and the pleasure of social interactions from the work environment. A sustained flow of income can also make a difference by providing spending money, extra comfort, and peace of mind. Many people thrive in a structured framework, especially if they have become accustomed to it over the years.

Prudent seniors realize they need to nurture their minds as well as support their bank accounts. Work can be a fine tonic for keeping mental processes sharp and feeding a natural curiosity that energizes. 

Evolving social attitudes

Times have moved on since 1935, when Social Security was first established. TD Ameritrade research found that 66% of workers surveyed plan to work into their 60s, and a whopping 52% into their 70s. The US Senate’ s Committee on Aging Report discovered that a remarkable 85% of Baby Boomers expect to toil in their 70s and some in their 80s.

A modern distinction is that about 80% of jobs today are sedentary or only require minimal physical exertion. It therefore no longer makes much sense to link retirement so closely to age. In most cases, workers’ mental abilities remain consistent with work requirements. In other words, conditions have vastly changed since the 1880s, when Otto von Bismarck first introduced government-funded pensions in Prussia.

Social norms have also developed, along with age discrimination legislation that prohibits most mandatory retirement cut-offs.

Meaning and purpose

Never retiring ideally means doing rewarding work on your own terms and for as long as you wish. The physicist Stephen Hawking stated, “Work gives you meaning and purpose, and life is empty without it.” Sigmund Freud agreed: “Love and work are the cornerstones of our humanness.”

A deferred retirement can take multiple forms, ranging from continuing career, starting a second career in a related field, volunteering, or running a business.

Whichever route beckons, do not be sidetracked by marketing terms, like “golden age,” or “golden years.” They were in fact coined by the real estate developer Del Webb, who created the first 55+ adult active community!

The bottom line? Work closely with medical, financial and vocational professionals so your path to working beyond age 60 is productive.

Copyright, 2023

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William Hayes

As an attorney in private practice in Los Angeles County, California William Hayes provides extensive estate and tax planning services to individuals and businesses in Los Angeles, Pasadena, Glendale, Burbank and surrounding communities. Attorney Hayes’ primary focus is to help clients avoid probate, protect their assets, and provide for the security of their loved ones with a well-crafted estate plan. He believes in giving each client the time needed to explain his or her needs and wishes and then dedicates his efforts toward making the client’s desires clear in their final estate plan.

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