- More people are working well after the official social security retirement age of 65.
- Factors such as using our minds more than our bodies, being invaluable to our companies, needing more retirement income, not feeling fulfilled yet, and age being just a number, are all things that contribute to this shift in this view of retirement.
- While an official retirement age may be arbitrary, it’s important to have a plan in place to ensure you have the money you need when you do decide to retire.
Estee Lauder and Peter Drucker. Tina Turner and Tony Bennett. Nancy Reagan and Jimmy Carter. These famous personalities in the entertainment, business, and political arenas have worked well in to their 70s, 80s, and 90s. They didn’t necessarily have a retirement age in mind.
In 2000, a study by the Pew Research Center showed that a little less than 13% of those over age 65 were working full or part time. That number rose to 18.8% in 2016 and is on track in the next 5-6 years to go up to 32%! Here are my top 5 reasons why we are seeing this shift in retirement age:
- Mind over body. We are increasingly using our minds, not our bodies when it comes to the work we do. The service industry has grown dramatically over the last 30 years. Areas such as business, accounting, legal, technology and education allow us to work a lot longer with our minds instead of wear and tear on our bodies.
- Top of your game. As you age, you tend to work your way up the hierarchy and become invaluable to your organization. You have the wisdom and experience that can help your business tremendously going forward. They want to keep you there if you want to be there.
- Enhance retirement income. Maybe you don’t have enough money yet to retire, so you want to keep going to build on that income. Or you may just want a little more income to live in the manner that you want further in to those retirement years.
- Not fulfilled yet. Perhaps you don’t feel like your purpose is yet fulfilled. You’re a complex person. You’ve got spiritual, emotional, social, cognitive, and other things that are whirling around within you that you want to do that may have not yet come to fruition. So, you want to keep moving towards those personal goals.
- 65 is not your number. There is a gentleman across the hall from me, a CPA, who retired at age 92. I’m turning 60 this year and I’m looking at working to 90, 95 or beyond. I don’t know exactly what age I’ll retire, but it’s not close for me yet! Millennials and those coming after them could be looking at 100, 110, 120. This 65 number was selected in the 1930s as an age for social security and that was it. It’s just an arbitrary number we’ve been stuck at for a long time.
How do you figure out that magic number for retirement?
While the age of 65 might not mean a lot anymore in terms of retiring from our work, what does matter is how much money you have at the date you decide you want to retire. You might need to have a projection. If you are a Coyle client, contact us so we can help you see your glide path and make sure you don’t run out of money by age 90 or 100 if you are going to live that long. Until next time, enjoy! Gary
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Gary Klaben is in our Glenview, IL office and serves our clients who are now located all over the country. He has over 30 years of experience and is the author of Changing the Conversation, The Wealth Sanctuary and co-author of The Business Battlefield. Whether advising his clients, mentoring his team, or coaching entrepreneurs, he is always simplifying complexity and motivating others to take the next action that’s right for them.
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