‘Before Social Security, most people’s retirement plan was death’: US economist says baby boomers are not all onboard with the ‘modern’ notion of a ‘work-free retirement.’ Here’s why

The 'want-to work’ cohort

If you're in a low-stress job you enjoy, the notion of trading all that in for loads of free time may feel like an abomination.

After all, leaving the workforce can increase feelings of isolation, loneliness and a lack of purpose for many older Americans.

According to the Vox piece, the median age of an American in the workforce today is 42. However, in the last 20 years, the participation rate of people aged 75 and older has increased.

As Edwards notes in her interview, those who are 75 and older are often still working as a choice rather than being forced by financial situations. That’s likely because, as a study from the Pew Research Center suggests, older workers are more likely to be self-employed, allowing them plenty of freedom to manage their own flexible work schedule — as well as provide mental stimulation and a sense of purpose.

And, although this might not be the first reason that comes to mind when people consider retirement, a 2016 study published in the Journal of Epidemiology and Community Health found a direct correlation between working past retirement age and a longer life expectancy.

According to research accumulated from an 18-year study period that involved 3,000 people, they discovered that working even one more year beyond retirement age was associated with a 9% to 11% lower risk of death, regardless of health.

Meet Your Retirement Goals Effortlessly

The road to retirement may seem long, but with WiserAdvisor, you can find a trusted partner to guide you every step of the way

WiserAdvisor matches you with vetted financial advisors that offer personalized advice to help you to make the right choices, invest wisely, and secure the retirement you've always dreamed of. Start planning early, and get your retirement mapped out today.

Get Started

The 'have-to work’ cohort

Whatever the harsh realities of the economy at large, the truth is that older Americans are increasingly anxious about the prospects of a financial struggle in their golden years.

Last year, a Gallup poll of more than 1,000 adults revealed that, out of eight financial matters discussed, Americans worried most about not having enough money for retirement — with 42% of those saying they are very worried.

The Gallup research also revealed some compelling financial divides between current and future retirees. In the first group, 59% said they relied on Social Security as a major source of retirement income.

But among those not yet retired, that figure is nearly sliced in half: only 34% expected that Social Security would be their main source of income. Instead, they said they will rely more heavily on savings accounts like a 401(k) or IRA.

The picture grows even more bleak when you factor in the sobering fact of unpreparedness. Nearly half of adults surveyed (49%) aged 55 to 66 didn’t have any personal retirement savings in 2017, according to a 2022 release by the U.S. Census Bureau.