Why Working Past Retirement Age May Make Sense

A study from United Income found although millions of Americans continue working past retirement age to meet financial needs, many stay employed for other reasons, according to Forbes . Many are maintaining their health through exercise, healthy diets, and staying active, which may play into their continued employment for the physical and mental benefits work can offer. "Of Americans aged 65 or older and working or looking for work, 78 percent report being in good health or better, up from 73 percent in 1997 and 69 percent in 1985," United Income notes. "As a result, more retirement-age people can work: 77 percent feel no limitations in the kind of work they can do, compared with 71 percent in 1997." A link between education and extended life spans also may contribute, as the report states, "The share of adults that are 65 years or older and working that have at least a college degree increased from 25 percent in 1985 to 53 percent in 2019. This pushed up the average real income of retirement-age workers by 63 percent during this time period, from $48,000 to $78,000." Furthermore, older workers may be less concerned with career goals than to simply keep working, making them more flexible about the jobs they are willing to accept. "Researchers have documented arrangements such as part-time work, bridge jobs, and phased retirement that make the path to full retirement less abrupt," the report concludes.