The New Year is upon us in two days. The coming year would have many Older Americans retiring, except they will continue to work another year or two or five. There was a time when older Americans would retire and work part time. This is not true of the last year and the next year older Americans are working full time longer and putting off retiring. There are many reasons older Americans are working full time longer, people are living longer and many older Americans in this century are healthier than previous generations. Social Security continues to increase the retirement age to collect. In addition, the limit in earnings for persons collecting Social Security has decreased and eliminated for some already older Americans already retired.
Many older Americans have not saved enough to retire on and will not be able to survive on just social security income. Many older Americans today live in poverty, so many continue working even pass retirement age just to survive in today’s economy. There are 7.2 million Americans age 65 and older who are still working which is double the number 15 years ago. This number is partly because many older Americans love to work and partly because many feel too financially squeezed to retire. The baby boomers are realizing that social security is paying them less then what their parents where receiving, and this is because of the increase in the full retirement age to obtain full Social Security benefits.
Money is not the only reason many older Americans are working longer. The need for benefits like health insurance, and a 401K, to increase money for retirement, is a big reason many older Americans are working past 65. The recession and the current economy have had a tremendous influence on older Americans working longer. In addition, the implementation of Obamacare caused a dramatic shift on how the middle class are forced to change their spending. This shift causes the reducing of money available for retirement. Therefore, older Americans need to work longer to save because they are paying more for insurance, or being taxed for not having it. This will of course change the way of retirement planning, and as people age they may be forced to switch from a wants based approach to a needs based approach. In other words, spending will be on a 1-10 scale of what is needed most to spend on.
So as the New Year approaches seniors, and you are making New Year’s resolutions, is one of them going to be to work longer and/or what needs are you going to do without to retire. Have a Happy New Year, and when you do retire seniors, enjoy your retirement the best way you can, even if you have to think about which kid you will have to stay with.