With almost a third of those over 60 still in the workforce, a new retirement age is on the cards. For those looking to enter the job market, they may have to compete with an older workforce for a position. But it’s not all about the money, those above retirement age are holding onto their jobs for other reasons too. The ideation of those at retirement age dancing a jig on their last day at the office in order to spend their time travelling and fishing are slowly coming to an end as retirees decide to keep their expertise within the job market.
It’s not all about the money
While it’s no secret that those at retirement age can hardly afford to retire, the financial drawcard isn’t the only one keeping retirees fixed to their posts. There is a strong sense of still wanting to be part of a thriving society and being able to contribute to the economy holds a stronger pull than the possibility of spending endless days tinkering away in a garage or hobby room. While the percentage of the older workforce hit a record low of 10.1% in 1995, this figure doubled to close to 20% by 2015.
The opportunity to delay retirement fund payments
While those at retirement age have the option to take their retirement benefits, they may want to delay the retirement withdrawals as long as they can. This not only allows them to build a bigger lump sum for later, but may also help them secure a bigger monthly income. In fact, in some instances, benefits can be up to 76% bigger for those who wait until 70 to retire. Those who are in debt can reduce their payments in this period and perhaps even settle their debt. This allows them to have more funds available for travel and unexpected medical expenses.
The money still helps
While a large portion of older citizens who decide not to put down the tools just yet do so because they want to remain part of an active society, necessity still drives a large portion of seniors who work beyond their retirement date. With the market slump of 2008, many who are at retirement age now have to make up a significant portion of their retirement savings again as they have suffered huge losses. The UK still loses up to £6,000 in lost income due to this event. Brexit may also have an effect on the job market and those wishing to re-enter the job market after the proposed exit might not find a suitable position.
Working beyond retirement is the perfect way to remain engaged and for those who enjoyed their corporate journey, retiring just based on age is simply not an option. The financial benefits can’t be neglected either.