While retirement is the dream for many people, a select few continue to work even into their 70s and 80s. And there are only a few. According to the Bureau of Labor Statistics, those age 70 and older made up only 5.8% of the labor force in 2023.
For some people, working is a joy, but for others, it is a necessity. Financial professionals say these are some of the reasons they see people staying in the workforce in their seventh or eighth decade and beyond.
— They want to earn income.
— They failed to save for retirement.
— They like the social aspect of work.
— They find work to be personally fulfilling.
— They want to remain healthy.
— They see no reason to stop working.
They Want to Earn Income
Continued paychecks are a driving force for some older workers. And even those who don’t need the money to pay bills may like to have cash flowing into their bank account.
“It does feel good to be earning money,” says Sallie Mullins Thompson, a certified public accountant and certified financial planner who has continued to work later in life.
That cash can help supplement retirement savings, pay for life goals such as travel or be set aside for future expenses, including long-term care.
However, these older workers might not earn as much as their younger counterparts. Workers age 75 and older earn a median of $20 per hour compared to $22 per hour for workers age 65 and older, according to a 2023 Pew Research Center report.
[READ: 8 Ways to Make Extra Income in Retirement]
They Failed to Save for Retirement
For some people in their 70s and 80s, work is a necessity.
“We are seeing people without a pension who have to work,” says Gerika Espinosa, a certified financial planner with Deseret Mutual Benefit Administrators. Lacking sufficient retirement savings, they plan to work indefinitely to cover expenses.
Self-employed people may be especially susceptible to working past the traditional retirement age. “People who are self-employed are ‘out of the system,'” Espinosa says.
Since they don’t have access to a workplace retirement plan — and the employer match that often comes with it — they may be at a disadvantage when saving for the future. Plus, if they have not properly reported all their earnings to the IRS, they may find themselves having to make do with smaller Social Security payments.
[Related:Can You Retire at 65 With $0 Saved?]
They Like the Social Aspect of Work
While some people see work as drudgery, others find it gives them a sense of purpose and an opportunity to stay socially connected.
“There are some that just really enjoy the work and continue to work for the joy of interacting (with others),” said Crystal McKeon, a certified financial planner with Houston-based TSA Wealth Management, in an email. “They often move to a new job that provides more satisfaction.”
Enjoyable jobs for septuagenarians and octogenarians may include working in retail shops as tour guides or tutors. All allow them to connect with others while also sharing knowledge accumulated over a lifetime.
They Find Work to Be Personally Fulfilling
Work can provide more than a paycheck. “It’s very satisfying mentally,” Thompson says.
“Often, it’s not about the money. For many people, working into the later years offers a chance to find employment in areas they truly enjoy and are passionate about,” said Greg Corneille, certified financial planner and wealth advisor with Choice Wealth Management in Atlanta, in an email.
He advises clients to consider turning their hobbies into part-time income. “In addition to the extra money, remaining physically and mentally engaged in activities we enjoy and with others is good for overall health,” Corneille said.
[READ: Work-From-Home Jobs for Retirees.]
They Want to Remain Healthy
Good health is another prime motivator for people who continue to work later in life.
“There is growing evidence that keeping an active mind, and the health benefits associated with the social component of work, can have a profound impact on one’s quality of life,” said Greg Giardino, vice president at Wealth Enhancement Group, in an email. “These health benefits are becoming more prevalent and are a main reason for working longer.”
Thompson says her personal experience has been that employment has kept her mentally and physically able to continue working.
They See No Reason to Stop Working
Inertia can be another powerful force that keeps people in the workforce. “As objects that are in motion tend to stay in motion, the same can be said of those that work,” Giardino said. “It can be very hard to break the routine, and making the adjustment to retirement can be difficult for some.”
The structure of work can be comforting, and some people might have difficulty envisioning how they would fill the hours without a job. Barring any compelling reason to stop, they are content to continue working for as long as possible.
More from U.S. News
Guaranteed Income Strategies for Retirement
How Much You Will Get From Social Security
Will Gen X Have to Retire Later Than Previous Generations?
Never Retire: Why People Are Still Working in Their 70s and 80s originally appeared on usnews.com
Update 10/02/24: This story was published at an earlier date and has been updated with new information.
