The conventional view of retirement as a time of no work and hopefully some play may be passe.
A new Harris Poll conducted on behalf of TD Ameritrade finds that a solid majority of Americans age 40 and older plan to continue working after retiring. And of those who intend to keep working, most plan to work their entire lives.
“Gone are the days of retirement being seen an essential, defined life stage, where an employee could expect to work for a company long-term and be taken care after retiring,” said Christine Russell, senior manager of retirement and annuities at TD Ameritrade, in a statement.
Long-term employment in a single job paying a pension in retirement has been long gone from the U.S. labor market for the majority of workers, but the idea of working in retirement is a growing trend, one advisors may want to consider when working with clients on their retirement savings.
According to the Federal Reserve Bank of New York, workers 55 and older have constituted an increasing share of the labor force since 2000, reflecting not just the aging of the population but also the differences in labor force participation rates of younger and older workers — falling for the former and rising for the latter.
A 2017 report from the U.S. Bureau of Labor Statistics (BLS) shows that about 40% of people ages 55 and older were working or actively looking for work in 2014, and the number “is expected to increase fastest” for people 65 and older.