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While according to the Bureau of Labor Statistics, people age 70 and older made up only 5.8% of the labor force in 2023, that could change soon. In a poll this July, 1 in 5 Americans think they may never retire — and usually not because they love their jobs. Here are just some of the reasons people don't think retirement is in the cards for them.
Saving up for retirement isn't easy — and for some people, it's impossible. Of those who don't think retirement is in the cards, a majority (70%) say that they can't afford it. The bad news is that they are unlikely to make the same income that their younger coworkers make. Workers age 75 and older earn about $20 per hour while workers in the 65 and younger group make $22 per hour.
Social Security is still around now, but plenty of Americans doubt it will be there when they want to retire. For those who haven't retired, 62% think the government fund will cover less than half their expenses, and 37% think Social Security will cover less than a quarter of them.
In 2022, 22% of adults aged 65 and over have medical debt, and people 50 to 64 have even more with 44% saying they are in the hole for medical bills. Debt can make it harder to get credit or rent an apartment, too.
A whopping 11.2 million senior-led households paid more than 30% of their income on housing in 2021. With housing, both rental properties and homes, being in short supply, this isn't likely to get better anytime soon.
While some seniors have saved for retirement, when it comes time to get that money, they may find it hasn't kept up with inflation rates. Some 68% of seniors are worried about inflation eating up their funds.
Some people just like coming to the office five days a week. Go figure. Sometimes working, especially if you have flexibility, is almost fun.
If an older worker grabs you by the water fountain to chat, maybe he or she is just trying to keep dementia at bay. Over 1100 seniors without dementia were tested on their social activity levels over a 12-year period. The rate of cognitive decline was 70% less in people with frequent social contact — and if a senior can get that at work, that qualifies as a bonus.
Not everyone hates Mondays (or any work day). For those who find work personally fulfilling, staying on the job has less to do with money and more to do with state of mind.
It used to be that most jobs came with a pension to carry you through retirement. Not so much anymore. If you're self-employed, you need to squirrel away a percentage of your income — and you don't have an employer match to rely on to boost your savings.
Believe it or not, staying on the job can be good for you. A study of 83,000 adults found that people who worked past age 65 were three times as likely to be in good health than those who retired sooner.