With people living longer than generations past, the traditional retirement age of 65 is generally increasing and will continue to do so. About 40% of current American employees plan to continue working until at least age 70, according to a 2011 study by the Transamerica Center for Retirement Studies.
Working until a later age, whether full-time or part-time, gives people more time to build their nest egg while also reducing the likelihood that they will run out of money during their golden years. Plus, if someone truly enjoys his or her job, continuing to work in some capacity is not necessarily a bad thing. “I always believed retirement was fictional,” says John Sestina, founder of John E. Sestina and Company in Columbus, Ohio. “Why does someone have to quit working if they are productive, and what are they going to do to replace that in their life? You can only play so many rounds of golf.”
People still need to take into consideration that their employment status could change due to circumstances such as a layoff or deteriorating health, says George Middleton, an adviser with Limoges Investment Management in Portland, Ore. “A lot of my clients say they will just keep working,” he says. “I always tell them ‘but what if you can’t?’”
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