Over half (58%) of Americans (64% of Baby Boomers and Gen Xers) may be in the job market post-retirement, and are open to working indefinitely – but the reasons aren’t purely financial according to new research from Empower, a leader in financial planning, investing, and advice. Would-be working retirees are motivated by values like personal fulfillment (41%) and having a sense of purpose (37%), just as much as potential financial needs (40%).
People remain concerned by economic factors that could impact their financial futures like inflation (52%), running out of money (51%), and unexpected expenses (49%). Overall, respondents point to having a 401(k) account as the top way to save for retirement (56%), followed by stocks (35%) and a traditional savings account (34%). According to Empower data, for people ages 60 to 65, the average 401(k) account balance is $198,194.* Workplace savings, such as a 401(k), are one important component of long-term financial health — alongside retirement income, including Social Security, and a person’s overall net worth.
“Having clearly defined personal goals — including when you want to retire — can help determine how much you should have saved, and the steps you can take to help optimize your investments,” says Nik Franklin, CFP®, a senior financial advisor at Empower. “Defining the ideal retirement is individual and comes down to priorities, values, and goals — both financial and personal. Getting a handle on your overall net worth is a concrete action to help see where you stand, and where to go.”
More key findings:
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Keeping the office door open: Nearly 2 in 5 Americans say working post-retirement would help them maintain a daily routine (37%) and keep their minds (37%) and bodies active (36%). Gen Zers are the least likely generation to say they’re open to working after they retire, at 49%.
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Plans for relocation: Nearly 1 in 4 Americans (22%) want to relocate to another state in retirement, and 10%…
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