Some Americans may be putting off their retirement and focusing on working more to further build their personal finance strategy.
There was a notable gain in the level of those who are 55 years and older still in the workforce, as this jumped to 40.5 percent in 2012, according to a report from the Employee Benefit Research Institute citing data from the U.S. Census Bureau. This figure was higher than the 34.7 percent recorded in 1975, but it increased gradually since it was at 29.4 percent in 1993.
“The upward trend in labor-force participation by older workers is likely related to workers’ current need for continued access to employment-based health insurance and for more years of earnings to accumulate savings in defined contribution (401(k)-type) plans and/or to pay down debt,” said Craig Copeland, senior research associate at EBRI and author of the report. “Many Americans also want to work longer, especially those with more education for whom more meaningful jobs are available that can be performed into older ages.”
Many Americans worry about retirement
Having a financial strategy that allows for a person to better save for the future may be important, but there are a number of individuals who are not confident this is getting done properly. According to a report from the Insured Retirement Institute, just 35 percent of baby boomers felt they had the right savings preparations in place. This was notably lower than the 44 percent recorded in 2011.
Despite this, there are some people who are gaining some confidence in their situation. The report noted that 42 percent of baby boomers felt that their financial situation will get better in the next five years, significantly higher than last year’s 33 percent.
“One of the most striking developments since we began this research series is the decline in Boomers who did not know when they would retire,” said Cathy Weatherford, president and CEO of IRI. “That number has been cut in half. While the research shows that they are deciding to retire later in life, the important thing is that they are grappling with important aspects of retirement planning and beginning to develop a clearer picture of where they are and where they intend to be.”
Only 10 percent of baby boomers noted that they took money out of their retirement savings plan this year, the report added.