If anyone said to me that I would have to work past 70 and that my 401k savings were not going to be enough to provide for me during retirement, I would have said they were crazy. At least that is what I would have said prior to 2008. Now I am not so sure. I might be working well into my 70′s to maintain the lifestyle that I prefer due to the losses in the stock market.There are millions of Americans who unfortunately fall into this situation.
There is another reason to keep working as well and that is to stay sharp and to keep active mentally at something that we enjoy. We will explore both of these seemingly ridiculous views in this post. We would really like your comments on this post since for many people it will hit very close to home while others will think that working past 70 is just plain crazy!
Pensions, 401k’s Not Measuring Up
The 2008/9 economic downturn really took a toll on many people and their financial health. They lost jobs, they lost homes, they had to borrow from their 401k’s and their savings and many lost a lot of money as stocks and mutual funds nosedived. Some had all or at least a major portion of their savings locked away in company stock only to see the company they worked for all of their lives go bankrupt. They lost their life savings!
If you are in your 40′s or younger, yes it is a tough time, but you have time to recover before you retire. Folks who are in their 50′s and 60′s will have a much more difficult time since their prime earning years are shorter and there is less time for their 401k’s to recover from the losses they experienced before they need to begin drawing on their savings during retirement. Add to this problem the fact that many senior workers find it difficult to get good paying jobs that will give them the opportunity to recover from their losses.
We have written in earlier posts in this blog, that you need to assess your plan and your potential income from your 401k and decide if you need to keep working longer than you planned. For this group of consumers who have lost a major portion of their savings, they have no choice but to continue working. You see them in the service industry working at department stores and other major chains on the cash register, greeters and many other jobs in the service industry. They do not make a lot of money at these jobs however they do make enough to subsidize their income from other sources to allow them to live a more comfortable lifestyle, pay the bills and enjoy their life.
We know of one individual who works at a donut shop through the summer and fall so that he can head south for the winter. Turns out he cannot afford to go on a vacation unless he works and he hates the cold winters. So he works to pay for his vacation. He is in his late 70′s! Many others are not as fortunate, they need to work to pay for the basic necessities.
There is an upside to this story that many people might not imagine, which leads us to the second part of this post.
Working to Stay Involved and Stay Sharp
The upside to continuing to work is that many people find it interesting, challenging and enjoy meeting people every day. Sure there are always difficulties about any job. There is not a job in the world were there is something that is not great about it. However most people would say that most jobs have something positive about them and that is one of the reasons why people work.
Leaving work to retire means that you also give up the social aspect of work. The people you associated with at work, met for lunch, had coffee with or even the odd drink after work. Sure you get together once and a while with your co-workers for lunch or drinks after you retire, but as time goes on, this becomes less and less due to other interests and time conflicts. Some people will turn to hobbies and sports such as golf and curling, to replace the social part of the job that they miss. They enjoy the interaction with people who they can have a good time with and just talk about world affairs or the latest gossip.
Many seniors are now finding that going back to work in the service industry provides them with an excellent outlet to regain some of this social interaction that they lost when they retired. The jobs are not usually full time which means they also have time to do some of the things they always wanted to do and never had time.
Employers appreciate having these seniors on the job. They show up on time every day, they work when they are supposed to work and they don’t fool around on the job the way some of the younger teens do on their first job. In other words they are dependable!
This situation is a win win for everyone and the benefits to the person, the employer and even the community are significant. As a senior you are making a contribution to the community which would not otherwise be provided.
Comments are welcome. Our readers will appreciate any suggestions and ideas you have regarding working past 70!
Working Past 70, You Cannot be Serious
These are two excellent reasons to continue to wok past 65 into your 70′s. Of course working while you are supposed to be retired is not for everyone. Some cannot work due to health reasons, while others do not have the desire to work. However if you need the money because you did not save enough in your 401k or you lost a great deal during the recession, this can be a solution with additional benefits that you may not realize were there.