Should You Count on Working Late in Life?

​Nearing retirement age but feel like you’re not completely prepared? That’s the way most Americans feel based on a recent Gallup study. More than 50 percent of people in the United States feel like they won’t have enough money for their retirement.1
 
An obvious strategy is to simply put off retirement or possibly take up part-time employment. As a Bankrate study found, almost 70 percent of workers want to stay in the workforce as long as possible. What’s more, nearly half said they would have to stay in the workforce solely to ensure they continue receiving income after retirement age.2
 
While this may seem like a good idea, there are a few reasons why you might want to rethink working late in your life. Even if you’re willing to work late into your golden years, it may not be a feasible option. Below are three things you may want to consider if you’re thinking about working into your 60s or 70s:

You could become disabled.
 
While you may be healthy and fit now, your chances of becoming disabled and unable to work might be higher than you think. According to the Council for Disability Awareness, a quarter of adults will become disabled before they retire.3 And the chance of becoming disabled only increases with age. As a study from the Centers for Disease Control shows, a little more than 60 percent of adults 65 and older suffer from at least one condition that limits their ability to complete basic or complex tasks.4
 
So what do all these numbers mean? They mean you may want to have a backup plan if you are considering working past the normal age of retirement. If you don’t, you may find yourself in a difficult situation, having to use your savings to pay for your care.

You might have to care for a spouse.
 
Something you may want to consider is the possibility of having to care for a spouse or loved one in need of long-term care. Long-term care may not be pleasant to think about, but the fact remains that for people over the age of 65, it’s a real possibility. In fact, a study by the U.S. Department of Health and Human Services found that 70 percent of 65-year-olds will need some form of long-term care.5
 
Unsurprisingly, if you are in need of LTC, chances are you will be unable to participate in the workforce. Having a spouse or loved one in need of that care may also restrict your ability to work as late as you want to, as you may need to care for them.

You could lose your job.
 
With technological advances and an ever-changing employment landscape, it is very possible that the job you have today might not exist over the next couple of years. In fact, a recent Transamerica study showed that 30 percent of retirees stopped working before they’d wanted to, and nearly 60 percent retired because of job loss.6
 
In today’s world, the job market changes rapidly. You may feel like your job is secure right now, but it might not hurt to consider the idea that you may not be able to work as long as you want.
 
Ready to make the final planning decisions before you retire? Let’s talk about it. Contact us at Carstens Financial Group for more information. We welcome the chance to help you analyze any remaining questions and develop a strategy. Let’s start the conversation today.
 
1https://news.gallup.com/poll/210890/americans-financial-anxieties-ease-2017.aspx
2http://www.bankrate.com/finance/consumer-index/money-pulse-0916.aspx
3http://www.disabilitycanhappen.org/chances_disability/disability_stats.asp
4http://www.cdc.gov/nchs/fastats/disability.htm
5http://longtermcare.gov/the-basics/who-needs-care/
6https://www.transamericacenter.org/docs/default-source/retirees-survey/retirees_survey_2015_report.pdf
 
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18148 - 2018/10/17