Are You Thinking About Retiring Retirement?

Retirement is one of the most significant life transitions, and current Senior "retirees" and the 78 million Baby Boomers just behind them are re-writing the rules. No longer satisfied with just a retirement dinner and commemorative watch, then endless days of golf, or arts and crafts at the local Senior Center, many of us want a lot more out of our "golden years." In fact, many of us aren't planning to retire anytime soon -- if ever.

The experts are baffled but they really shouldn't be; this has been coming for a while. After nearly a century of dropping, the male retirement age hit a low of 55 in 1980 -- but it has been moving slowly in the opposite direction ever since. People are retiring a little older each year. The important question is, "Why are Boomers delaying retirement?"

A new image of the retiree has emerged. Nearly 80 percent of pre-retirees say they plan to keep working and earning in retirement, but will do so by working part-time and cycling between periods of work and leisure, creating a new model of retirement. Looking at national surveys by American Association for Retired Persons (AARP), Boston College's Center for Retirement Research, MetLife, and Merrill Lynch, many people intend to keep working. On average they expect to "retire" from their current job or career at around age 64, then launch into an entirely new job or career. About half of the retirees in one survey plan to continue working into their 70s and beyond, with 17 percent intending to never retire.

The most common reasons for staying in the labor force given by people age 41-59 were:

• to stay mentally active -- more than 60 percent
• for the money and to stay physically active -- more than 50 percent
• to stay connected with others -- more than 39 percent
• for the health benefits -- 37 percent
• to provide a sense of identity or worth -- 39 percent
• to provide new challenges -- 35 percent

What we know for sure

• Over the next 25 years, 78 million Americans will reach the traditional retirement age. These individual, known as Baby Boomers (born from the end of World War II to 1964) represent the largest identifiable social group in American history.
• Approximately 8,000 Americans turn 60 each day. Already, 2.8 million Boomers have passed that mark. More than 37 million Americans are now aged 65 and older, according to the U.S. Census Bureau, and that number is expected to nearly double by 2030 as Boomers continue aging.
• Of people currently "retired," 25 percent are actually working.
• A national survey of 400 private employers revealed positive perceptions about employees 55 and older. Employers view older workers as more productive than younger employees, but also more expensive, and generally just as "attractive."
• Two-thirds of people who expect to work in some capacity during their retirement years would prefer to change jobs and work a flexible schedule.
• More than 80 percent of Boomers believe they will need more money than their parents' generation to live comfortably in later life, but only 39 percent think they are planning and saving adequately for that reality.
• Some (currently 17 percent but growing) cite the commitment to caring for their aging parents and supporting "boomerang" children or grandchildren as the reason for needing more money.
• Almost 60 percent of Boomers anticipate inadequate health coverage for themselves and their families in later life. This is based on a longer life expectancy, the sheer size of the Boomer generation, and the shortcomings of Medicare.
• Today's retirees are better educated than previous generations. But many Boomers are not taking the steps they need to achieve financial security once they retire. It is estimated that half of all Boomers now in their 50s will lack the resources to retire at the same age as did similar workers in the past. This bad news confirms concerns about retirement prospects. An estimated 60 percent of those who are unprepared for retirement may want and need to remain on the job longer -- at least two years longer to add significantly to their retirement income and financial security.