they have no plans to work during retirement.
Of those who plan to work as long as possible during retirement, 38 percent are planning to work because they like to work and 35 percent said they
plan to work because they need the money. Twenty-seven percent said both. Early retirement is no longer the goal it once was: just 13 percent of
nonretired Americans hope to retire in their 50s, down from 27 percent in 2007.
Additionally, the Bankrate.com survey found that nearly half of retirees (47 percent) are either very worried or somewhat worried about outliving their
retirement savings, up from 37 percent in 2009, the last time this question was asked.
"Working during retirement brin
gs a lot of benefits," said Jill Cornfield, Bankrate.com retirement analyst. "I'm not surprised that nearly three-quarters
of people said they'd like to work as long as they can while in retirement. It's not just the money. When you can work as a consultant or find some
part-time gig , it really helps you stay sharp."
As for Social Security, 70 percent of nonretirees expect it to account for some of their income in retirement, including 10 percent who are depending
on Social Security for all of their income. Interestingly, out of all the age groups, millennials were the most likely to sa
y that they don't expect to
receive any money from Social Security when they retire (32 percent).
15. Retirees wh o continue working face tax disincentives
Extended work can lead to higher taxes, according to a study conducted by researchers at Boston University, the University of California at Berkeley
and Economic Security Planning Inc.
"If the boomers are short on regular assets, short on retirement account assets, short on defined benefit pensions, short on Social Security benefits,
long on explicit and implicit taxes, and the government can’t hel
p, boomers have but one option to maintain their living standards — earn more by
working more at their current jobs, delaying their retirements, or returning to work if they have already retired," the report said.
"This is far easier said than done. Hour constraints at their current jobs, age discrimination, increasing preference for leisure, and health limitations
are four major factors that limit older workers’ abilities and desire to raise their earnings through time. Older workers also experience age-related
declines in productivity and, where applicable, negative private pension accrual associated with ongoing work."
Even worse, government-imposed work disincentives may discourage people from extending work. The report listed exp
licit marginal taxation such
as FICA payroll taxes, implicit taxation associated with the loss of government benefits, and increased premiums associated with increased earnings
as disincentives for workers continue working at or after retirement ag e.
16. Baby boomers keep getting divorced
“Gray divorce” is a trend with no end in sight, according to research from the American Academy of Matrimonial Lawyers. A survey of its members
found that 64 percent have seen an increase in divorces cases among couples aged 50 years or older.
Failed marriages among people over 50 doubled from 1990 to 2010, according to Bowling Green State University’s National Center for Family &
Marria
ge Research.
The top three issues divorcing boomers fight about is alimony (83 percent), retirement accounts and pensions (62 percent) and business interests
(60 percent).
“A rising divorce rate is becoming a very consistent trend with the baby boomer generation,” said Joslin Davis, president of the American Academy of
Matrimonial Lawyers. “As people live longer, their relationships can change in some very dramatic ways, but spouses within this age range also need
to be extremely mindful about the complexities of negotiating key issues involving spousal support and retirement accounts.”
Davis recommends couples in the over-50 ag
e range who are divorcing immediately recognize and accept that two households will often not be able
to live at the same level as one household. She also cautions the supporting spouse in these cases that it is often worthwhile to consider sharing
more assets and retirement funds upfront in order to work out an agreement that doesn’t necessarily include alimony. Davis also advises dependent
spouses that the prospect of long-term alimony can serve as a very powerful negotiating tool.
17. Adult ch ildren are derailing their parents' retirement
After two or more decades of raising children, empty nesters often look forward to a brea
k from the financially draining years of parenting and the
resulting opportunity to build their retirement savings. People in their 50s often are at the peak of their earning potential and theoretically are well
positioned to accelerate their retirement savings when their children leave home.
In reality, household savings through 401(k) plans do increase for empty nesters, but only a tiny 0.3 to 0.7 percentage points, according to research
from Boston College’s Center for Retirement Research.
“Among the explanations offered for the lackluster increase in savings is empty nesters’ continued financial support of adult children,” wrote Dearing
of S
UM180. “Picking up their grown kids’ expenses — student loans, insurance, auto payments, smart phone bills — is a generosity those who have