The COVID-19 coronavirus crisis and its economic impacts have not spared the senior demographic in the United States, as a new survey conducted by American Advisors Group (AAG) indicates that an increasing share of older Americans are planning to work far beyond a conventional retirement age.
With a respondent pool of 1,500 seniors between the ages of 60 and 75, AAG’s Post-2020 Retirement Survey reveals that surprisingly widespread numbers of seniors are pushing their retirement dates further and further back, while others are planning to work for the rest of their lives. 18% of respondents said they plan to work past the age of 70, while an additional 12% said they do not plan to ever stop working a full-time schedule.
Nearly half of the respondents (46%) are no longer anticipating that they will have a work-free retirement, instead saying that they plan on working part-time or picking up a side job in later life to continue having an income. This may lead some to conclude that one of the primary financial stresses of an older American is their costs relating to housing, but nearly half of respondents (47%) instead say that they live in a home that is paid off and mortgage-free.
The survey also asked respondents to rank a series of choices related to potential solutions to improve a later-life financial situation, saying that the top two preferences were “creating an emergency fund” and “filing for an income tax refund,” respectively. 30% of seniors responded in the affirmative when asked if the tumultuous economic events of 2020 impacted them financially, while 21% of respondents said that the events of last year caused them to withdraw from retirement accounts or savings earlier than planned.
“After the uncertainty created by the events of 2020, many seniors want to ensure that they will have the financial means and flexibility to enjoy the retirement they had hoped and planned for,” said AAG Chief Marketing Officer Martin Lenoir in a statement announcing the survey’s results.
This naturally creates a perception of additional pressure on the construct of American retirement, Lenoir says.
“While we know that Americans are living longer, this survey illustrates that seniors are working longer into their retirement years too,” he says. “We’re also starting to see a positive shift with our customers who have done their research; they are looking at home equity to fill that cashflow gap so that, instead of working longer, they can enjoy the lifestyles they’ve spent years building.”
Read the results of the survey at AAG’s dedicated website for its findings.