1 in 10 mature workers don't expect to retire
February 17, 2012
A recent survey conducted by CareerBuilder finds many workers older than age 60 do not expect to be able to retire any time soon. In addition, a significant number of survey respondents indicate that once they retire from their current job, they will likely look for new employment.
One in 10 don't foresee retirement
The CareerBuilder survey asked 800 workers older than age 60 when they expect to retire from their current position. More than 10 percent responded by saying they don't think they will ever be able to retire. The remaining respondents said they expected to leave their current job in the following time frames:
- 1-2 years: 26 percent
- 3-4 years: 23 percent
- 5-6 years: 22 percent
- 7-8 years: 7 percent
- 9-10 years: 7 percent
- 10+ years: 4 percent
Regardless of their anticipated retirement age, 57 percent of those surveyed said they expect to look for a new job after retiring from their current position.
"Whether mature workers are motivated by financial concerns or simply enjoy going to work every day, we're seeing more people move away from the traditional definition of retirement and seek 'rehirement,'" said Rosemary Haefner, vice president of Human Resources at CareerBuilder, in a press statement.
Tips for retiring on time
While some seniors may enjoy working, others may find they simply do not have the monetary resources needed to retire on a traditional schedule. Having a strong retirement portfolio and a good financial plan are key to avoid being pressured into work after retirement age.
The best way to prepare for retirement is a combination of reducing expenses and increasing savings:
- Pay off credit cards and other consumer debt: Living off retirement income is much easier for those who aren't still paying for purchases from years past. If possible, consolidate balances on a 0 percent interest credit card or low interest account and make extra payments toward that balance whenever possible.
- Diversify investments: Instead of investing in single stocks, a better strategy may be to spread money across a number of mutual funds that offer varying investments and risk levels. A good financial advisor can help identify which funds are most appropriate.
- Take advantage of employer and tax perks: Many employers will match some or all of employee 401(k) contributions. By taking advantage of this perk, retirement funds can effectively be doubled in some cases. For those who have maxed out their employer match, contributing to a traditional IRA offers tax benefits that can far exceed the interest offered by money market accounts and other savings options.
