Both men and women in the U.S. are delaying retirement by three years
By Deborah Jeanne Sergeant
The average age for retirement has increased by three years over the past three decades.
Men, on average, are retiring at age 64 (from 61 in 1994) and women at 62 (from 59 in 1994), according to a study published in April by the Center for Retirement Research at Boston College.
That’s significant because the age of retirement had been declining since the early 1900s and stabilizing in the 1980s.
Why is it going up now?
The Boston College study points to several possible factors. After the Industrial Revolution, pensions enabled more people to retire instead of simply working until ill health in older age took them out of the workforce. But decades later, retirement tools such as the 401(k) and Social Security benefits reward working longer.
A shift in outlook toward work has also proven a factor.
In previous generations, people took jobs that carried on a family business or that simply paid well regardless of any personal satisfaction in the field. They stuck with it out of social and familial obligation. More recent generations have sought to find work that’s fulfilling, which could mean more resistance to retirement. Why stop working when you love it?
The worker’s finances also factor into when one retires.
“Sometimes, it’s because of affordability,” said Peter Tallarico Jr., a financial adviser and president of Blue Ridge Financial Services in Syracuse. “There’s a lack of understanding about affordability and it may be too late for someone like me to help them if they’re in their 60s. But if they have any kind of investments, I can help them. Many people think they need to work later because they don’t have an adviser and think they need to work more than they do.”
Tallarico related that the average rate of returns on investment is often higher than required for a modest lifestyle.
Many people don’t have even a general plan of what they want their money to do in retirement, so they keep working.
“I ask about whether they want to maximize their investment or leave more to their heirs,” Tallarico said. “They need advice from a more advanced or up-to-date adviser.”
A lack of information and guidance is something that is often observed by Anthony Hinds-Fritz, president and owner of Evolution Retirement Solutions, LLC in Syracuse.
“A lot of people feel like they have to save more to be in a position to retire,” he said.
Hinds-Fritz is a chartered financial consultant, chartered retirement plans specialist.
For others, “they just like to work,” Hinds-Fritz added. “They like what they do. A lot of people retire but still work at least part-time throughout retirement, whether in the same field or in something different, whether to stay busy or maintain the lifestyle they want to live. I think we see retirees who were bankers working at Home Depot as it’s something to do. There’s research to back this but people undervalue the benefit of social interaction.”
Retirement can often mean losing the friendship of former colleagues. They may say they’ll keep in touch but without the daily interaction at work, this seldom happens.
Whether continuing to work, working at a different job, participating in community groups or volunteering, staying active and engaged is vital for a healthy retirement. It’s fine to travel, enjoy hobbies and putter around the house, but regular, meaningful activity that involves other people — not isolation — can help promote healthy longevity.
The Centers for Disease Control and Prevention correlates loneliness with greater risk for heart disease, stroke, Type 2 diabetes, depression, anxiety, addiction, dementia and premature death. During the pandemic, isolation proved to devastate the health of already vulnerable people and even those who were otherwise healthy struggled to a degree. Self-imposed isolation during retirement reduces the mental health boost of belonging to a community as well as the practical benefits of having someone looking out for you and providing support as you need it.
Before taking the plunge to retirement, look at ways to stay connected, whether through working, volunteering or participating in groups that meet regularly.
