Retired in America

Your Guide to a Confident Retirement

  • Home
  • Personal finance
  • Retirement Life
  • Saving & Spending

Here’s the No. 1 Reason Seniors Work Well into Retirement

October 14, 2019 · Retirement Life

A recent poll has looked at the retirement situation in America, bringing to light some particularly upsetting finds. While we typically think of retirement as a sort of relaxing, golden period of our lives, it turns out that statistically, it’s not fantastic for everyone. 
Out of 10 retirees, 6 have admitted to working into retirement for financial reasons and while that sounds pretty disheartening, wait till you hear the more specific reasons behind this choice. 
Seniors aged 65 to 85 claimed that they simply couldn’t afford retirement and without at least a part-time job, they’d be struggling day to day. Keep in mind that some still even worked full-time in order to stay afloat. Another big reason behind this phenomenon is the fact that they need to work to support their families, which also sheds an interesting albeit disheartening light on our economy. 

The issue of debt is also a very big reason why so many retirees choose to stay in the workforce. Owning money pushes a lot of people into work well beyond their full retirement age and their savings and Social Security simply cannot keep up with it. 
Emergencies, coupled with health care costs can spring up at any moment and keeping up with everything can feel daunting and impossible without a working wage to back it all up. Some seniors might be doing alright financially, but that may also be because of workplace benefits. Without them, some have claimed that they’d simply not be able to remain stress-free. 

A senior woman reviewing retirement savings and financial documents at home.
A focused senior woman reviews her financial documents and savings charts at her kitchen table.

Savings overview

The number everyone’s talking about in 2019 when it comes to health-care costs is $285.000. That’s not a small amount and it feels especially daunting when the study also showed that on average, seniors had saved $133,108 for retirement. That’s not even half of what’s supposed to last through medical care alone, not to mention any other expenses. 
Seniors rely on their workplace to cover a chunk of health, life and disability insurance, so a lot of times leaving the workforce is simply not an option.
Financial advisors typically say you should have 8 times your starting salary by the time you turn 60, so keep that figure in mind when you’re planning out your retirement. 

 

If you find yourself in the same situation, here are a few things to keep in mind:
1. Always keep an eye on your money. Don’t just look at your saving accounts every once in a while. You should stay on top of any investments and profit-sharing plans, not to mention employee stock ownership plans from your office. 
You should always be aware of every last dollar, including any benefits you’re entitled to. That’s why it’s crucial that you’re aware of your full retirement age, calculated based on your birth year. So don’t take just anyone’s words on when that is and look it up for your own as some people might experience it sooner or later even if they’re close in age.
2. Stay on top of your required minimum distributions. You could face as much as a 50% penalty if you forget about your RMDs when it comes to 401(k) and individual retirement accounts. So, no matter the amount you avoid withdrawing will see a 50% cut unless you’re still working. 
There are some confusing exceptions, though. You must still withdraw if you own 5% or more of the company, for example. As far as IRAs go, you also have to withdraw whether you’re still working or not. 
So don’t lose sight of what you can or can’t avoid depending on your personal financial situation.
3. Planning for retirement is more than the numbers in your account. Everyone’s retirement is different, there’s no doubt about that. Sometimes it seems natural to just go with the flow and take hints from everyone else around you, but if you want to be fully prepared, consider speaking to a financial advisor.
They can help you look at your situation from the outside while giving insight on what you should expect and what you shouldn’t worry about. Some retirees can become so stressed about their monetary situation that they forget about certain benefits, requirements and even their inheritance plans. 
An outside opinion could help put you at ease. 

Share this article

Facebook Twitter Pinterest LinkedIn Email

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Search

Latest Posts

  • A panoramic view of the twin crater lakes of Sete Cidades in the Azores, featuring one blue and one green lake surrounded by lush green hill 9 Scenic (and Cheap) Destinations That Rarely Disappoint
  • A retiree looks out over a lush tropical valley at sunset from a terracotta balcony, holding a coffee mug. 10 Best Countries to Retire Abroad in 2027
  • A retired couple stands amidst moving boxes in their living room, bathed in warm afternoon sunlight during their relocation process. 8 Common Relocation Mistakes Retirees Tend to Make
  • 7 Costco Items Worth Buying in Retirement Because They Actually Lower What You Spend Each Month
  • A retired couple at a kitchen table looking at a map and tablet, planning their next move to a surprise retirement destination. 8 Places That Surprise Retirees in the Best Possible Way
  • A panoramic watercolor illustration showing a transition from green mountains to red deserts and blue lakes. 11 Nature-Filled Destinations Perfect After 60
  • A retired couple sits on a coastal bench in Maine at twilight, looking out at a harbor with lobster boats. 9 Charming Northern Spots for Retirement
  • A stylized gouache illustration of a western landscape featuring mountains, red rock mesas, and pine forests under a warm afternoon sun. 10 Western Retirement Spots with Incredible Lifestyle Appeal
  • Three active seniors walking through a vibrant, sunlit downtown plaza with a dog and coffee, representing a fulfilling retirement lifestyle. 9 Places Where Seniors Are Finding More Things to Do
  • A senior man at a kitchen table early in the morning, looking at a laptop with a financial graph, representing proactive retirement planning Social Security's 2027 COLA Forecast Just Changed - Here's What Retirees Should Know

Newsletter

Get retirement planning tips, savings strategies, and lifestyle insights delivered to your inbox.

Related Articles

12 Things You’ll Need To Sacrifice Now for a Healthy Retirement

Posterity, our families, and self-improvement. Those are just three reasons we work hard for all…

Read More →

10 Beach Towns That Are Perfect For All Retirees

Discover the 10 best beach towns for retirees, featuring affordable coastal destinations with excellent healthcare,…

Read More →

10 Sunny Places to Retire To

Deciding to retire in a warm, and sunny place isn’t for everyone. Even so, there…

Read More →
A panoramic view of the twin crater lakes of Sete Cidades in the Azores, featuring one blue and one green lake surrounded by lush green hill

9 Scenic (and Cheap) Destinations That Rarely Disappoint

Discover nine scenic and affordable travel destinations perfect for retirees, featuring hidden gems that maximize…

Read More →
A happy retired couple walks along a sunny coastal boardwalk at sunset.

12 Locations You’ll Love to Retire To

Discover 12 exceptional U.S. retirement locations carefully selected for their healthcare access, tax friendliness, affordability,…

Read More →

30 Cities in USA Way Too Expensive for Retirees

Discover why relocating to these 30 expensive U.S. cities can rapidly drain your retirement savings,…

Read More →

Best Multivitamins For Over 50s

The more we age, the more our bodies’ needs are changing, so do our nutrient…

Read More →
A retired couple calmly reviewing their finances on a tablet in a bright, modern living room.

Retired? Pay Attention to These 15 Hidden Fees That Could

Discover 15 hidden retirement fees that quietly drain your fixed income, including banking traps, investment…

Read More →

13 Things Worth-Knowing if You Buy a House After 50

Retirement can be an amazing time, where you finally get to feel that peace and…

Read More →
Retired in America

Your Guide to a Confident Retirement

Inedit Agency S.R.L.
Bucharest, Romania

contact@retiredinamerica.com

Trust & Legal

About Us

Editorial Policy

Advertiser Disclosure

Frequently Asked Questions

Contact Us

Disclaimer

Terms and Conditions

Privacy Policy

Subscribe

Unsubscribe

Categories

  • Personal finance
  • Retirement Life
  • Saving & Spending

© 2026 Retired in America. All rights reserved.