Data & Research June 29, 2011

Staying Busy Trumps Financial Reasons for Postponing Retirement

A growing number of the American middle-class expects to work well beyond traditional retirement age, according to the First Command Financial Behaviors Index.
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Recent findings from the First Command monthly survey reveal that 22% of middle-income people ages 25 to 70 plan to retire in their 70s, up from 14% a year ago.  When they do eventually retire, three-quarters of Americans say they are likely to consider working at least part time – half expecting to work 16 to 25 hours per week.  

While the survey indicates financial considerations are part of the desire for part-time employment in retirement, much of the interest in post-retirement employment is being driven by emotional motivations.  

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When asked why they are likely to work during retirement, American consumers said they: 

  • Want to stay busy (69%) 
  • Want to stay intellectually engaged (58%)  
  • Need the extra income (49%) 
  • Want the sense of fulfillment they get from working (44%) 
  • Want to delay tapping into their retirement savings (31%) 
  • Want to continue receiving benefits (29%) 
  • Want to keep the community aspect of the workplace (17%) 
“Money is important, but it’s only part of the story,” said Scott Spiker, CEO of First Command Financial Services. “In this emerging vision of post-retirement, part-time work, consumers expect to retain the intellectual and emotional satisfaction they currently enjoy in their full-time careers.”

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