Will You Work Past Your Retirement Age?

If you're like most Americans, chances are you will work past your retirement age. A recent Gallop poll showed three in four Americans believe they will work past their retirement age. The amount of people who believe they will continue working is almost equally split between having to work and wanting to work.

In the Gallup poll, 40 percent of those asked about working past their retirement age said they wanted to do so while 35 percent said they believe they will have to. Only 19 percent feel they will only work until their retirement age. The percentage of people who believe they won't retire has declined since the last time the same poll was taken back in April 2011.

Retirement Road Sign with blue sky and clouds.In April 2011, 44 percent of those polled believed they would work past retirement by choice and 36 percent said they would work out of necessity. Last month only 40 percent of respondents believe they would work past retirement by choice, while 35 percent said they would work out of necessity.

The drop in the number of Americans who believe they will still work when they hit retirement age isn't a surprise. In April 2011 the housing market was still in the doldrums and housing prices were still declining. Whereas this year when the poll was taken, housing prices were showing the largest year over year gains since the peak of the housing bubble in 2006.

The unemployment rate for April 2011 was a lot higher than it was last month. The unemployment rate in April 2011 was at 9.00 percent, where as last month the unemployment rate as down to 7.5 percent. Consumers are more confident now then they were two year ago. The Conference Board's Consumer Confidence Index is now at a 5 year high at 76.4 percent, back in April 20111 the index was lower at 65.4 percent.

The number of Americans who believe they will work full time into retirement age was at 18 percent in the April 2011 survey, in this past month's survey the number fell to 15 percent. The number of Americans who believe they will work part time also declined, in April 2011 63 p0lled believe they would work part time, last month 61 percent believed they would work part time.

The number of respondents who believe they would stop working all together increased from 18 percent to 22 percent. Higher income Americans were also more willing to work into their retirement age. 49 percent of those earning $75,000 or more annually wanted to work past retirement.

The income people received in their retirement years has changed over the past several generations. Gone are the days where one could rely on a pension and Social Security income to have a comfortable retirement. The shift from pension plans to IRA accounts and 401K accounts over the past 30 years has left many Americans unable to retire just believe they haven't saved enough to retire.

The boomer generation, Generation X and Generation Y all haven't saved enough to retire. I recently wrote an article based on a Pew survey that showed a majority of Americans are not saving enough for retirement. You can read the article here: Are you Saving Enough for Retirement? According to a Pew Report, Probably Not.

Have you already retired and are stuck with low rates on your interest bearing investments? To help you find the best CD rates you can search our rate tables here: cdrates.monitorbankrates.com.

You can read the entire poll here: Gallup poll.

Author: Brian McKay
May 29th, 2013