Twenty years ago, the average American over 65 years old was most likely unwinding mentally and physically as they prepared for retirement. In the modern era, the average 65 year old has full-time job.
According to a recent report that was released from the U.S. Bureau of Labor Statistics, 20 percent of American men and women over the age of 65 are active in the job market.
This is a result of an aging baby boom population that is currently in a financial crisis, which has resulted in them pushing back retirement so that they can generate capital or earn additional benefits.
Twenty-seven percent of U.S. citizens claimed that they plan to work past the age of 65 – until they can no longer work. Twelve percent claimed that they do not plan to retire – ever.
Many baby boomers’ who are still working suffered from the tech bust and from the financial crisis, which had depleted many of their retirement savings. As of 2016, 60 percent of Americans have zero dollars in a 401(k) plan or in a retirement account.
Surprisingly, 36 percent of working Americans over 65 years-of-age reported that they enjoyed working. Many find it more beneficial to their mental health to stay active in the workforce opposed to relaxing at home and living a hobby-filled life.
As an individual who is less than 30 years away from retirement, the thought of working into my 70s scares me. I believe that the body, mind and emotions deserve a break after 40+ of being active in the workforce. In addition, the thought of not having financial security during a time-period where I would be more prone to injury at the age of 65 is not comforting. I firmly believe that the golden years is a moment in time that should be enjoyed with family, nature (the world) and the individual self.
More Americans are working past the age of 65 since the 1960s.
Young adults should take heed to the challenges that aging Americans face. It is important to prepare for retirement at an early age so that life can be less stressful in the future. Here are some things that you can do to secure a financial future:
- Save, save, save
- Spend conservatively
- Do not make risky investments
- Explore bonds, retirement plans and 401(k) plans
- Invest in stable assets, such as real estate
Author: This Tiny Planet