By Sharon Woodson-Bryant
There’s no doubt that many in the Baby Boomer generation, those born between 1946 and 1963, have retirement on their mind. According to marketrealist.com, more than four million Boomers have retired since 2008, and that number is steadily rising each year.
However, there are still a fairly high percentage of Boomers who are continuing to work to age 65 and beyond. According to a recent Bloomberg article, some 32 percent of Americans aged 65 to 69 were employed as of mid-2017. Looking at those past age 70, a growing number of seniors are deciding not to retire—or are unable to retire. As of mid-2017, 19 percent of 70-to-74-year-olds were working, an increase of 11 percent compared to 1994.
While there are several reasons why some Boomers continue to work into their “golden years,” here are four of the more common ones:
Reason One: Residual Fallout from the Severe Stock Market Declines
The market declines of 2008, 2009, and 2011 caused many investors to lose high percentages of their retirement savings. For example, a working investor with $250,000 in a 403(b) or 401(k) portfolio could have lost $50,000 with just a 20 percent market decline. Even with continued saving, it could take roughly eight years to recoup the loss, not factoring in any gains or further losses.
Some investors reduced their holdings in riskier stock portfolios and shifted to bond funds, precious metals, or real estate, but few completely escaped the market losses. Fortunately, since January of this year, the market has reached all-time highs more than 30 times, and those still invested may benefit, at least for now.
Reason Two: Assisting Aging Parents While Raising Their Own Children
Many Boomers—particularly those born near the tail end of the generation—are part of what is called the “sandwich generation,” caring for aging parents while supporting their own children. According to the Pew Research Center, more than one in eight Americans ages 40 to 60 is both raising a child and caring for a parent.
Boomers may help cover expenses for in-home care, housekeeping, and home maintenance for their parents. While minor costs may range from $1,000 to $5,000 annually, many parents face larger unexpected expenses, often without long-term care insurance. Forbes reports that 70 percent of Americans who reach age 65 will need some long-term care for an average of three years. Costs for assisted living or nursing homes are substantial, with nursing home care running as high as $91,250 annually in 2015 and expected to rise.
Reason Three: Adult Children Living at Home
Some adult children of Baby Boomers remain in their parents’ home—or return due to high living costs, job loss, or pursuing college education. Millennials are the generation most likely to live with Boomer parents, which may require Boomers to cover college or postgraduate expenses. Delays in completing degrees due to overcrowded campuses also increase the financial burden.
Reason Four: Pursuing a New Career or Interest
Retirement may provide the opportunity to pursue a career or interest that Boomers could not previously follow. Some may not return to school for advanced credentials but can volunteer or work in related fields. For example, someone who wanted to be a teacher might volunteer or work as a teacher’s aide, while a future doctor may work as a hospital volunteer or office assistant. These roles allow Boomers to find fulfillment and purpose while sharing their skills and compassion.
Kimberly Durment Locke is a freelance writer living in the Los Angeles area who enjoys writing about a variety of topics and issues. Her articles have appeared in Cherokee Phoenix, Winds of Change magazine, and Pasadena magazine. She is a registered Cherokee Nation citizen and also of Hispanic and European ethnicities.
