- 3-Minute Article
- Jun 01, 2017
3 Reasons Clients Work in Retirement and How to Help Them Plan
Most Americans intend to work beyond retirement age. How can you help them plan?
Retirement is undergoing a significant change, with 79% of Americans planning to work into their later years.1
Many continue to work simply because they have to keep up with their financial commitments. They have houses, loans and families still to pay for, alongside their day to day living expenses. But more and more people are choosing to work during retirement, without needing to rely on their paycheck.2
We’ve identified three key reasons clients might choose to keep working and how adding the guaranteed income of an annuity could help them retire on their own terms.
- Work is a way to feel valued
‘Busy-ness’ is important in American culture.3 We link it to being respected and successful,4 and are increasingly carrying this over into our retirement years.5 While many retirees will reduce the amount of time they work, there is a growing trend towards staying employed in part-time or consultative roles.6 The sense of belonging and being valued is an important part of working life and is the reason some people choose to stay on at work, or take voluntary or low paid employment in retirement.
- Work is an opportunity to start something new7
In their later years, people are often relieved of many of the responsibilities they’ve carried all their lives. They are no longer the breadwinner or the boss, with a family and employees to support. This gives them the opportunity to fulfill long-held dreams and ambitions. More and more retirees are taking on exciting new challenges that may not be jobs but certainly involve a lot of work, like going back to college,8 retraining for a new skill or starting a new business venture.9
- Work is a way to ‘sync up’ with their spouse
There are several reasons spouses retirement dates can get out of sync, for example, because they are of different ages, or one spouse has chosen to add the years of employment missed while raising their family onto the end of their career.10 It is not uncommon for one spouse to delay retirement so they can start it at the same time as their partner.
As an advisor, you have a big part to play in putting in place the financial security that will help your clients’ achieve their increasingly varied and active plans for their later years.