Laboring Longer A Growing Trend In U.S.

Without Sufficient Savings, Americans Working Past Traditional Retirement Age

(AP)  Americans are changing the game plan for retirement, with millions laboring right past the traditional retirement age and working into their late 60s and beyond.

While the average retirement age remains 63, that standard may soon be going the way of the gold watch - a trend expected to accelerate as baby boomers close in on retirement without sufficient savings.

For 64-year-old John Lee, "retirement" bears a strong resemblance to his full-time working career - full of 40- and 50-hour weeks as an IT technical support specialist. He's not strapped but likes the extra cash and the feeling of being needed.

But for Melissa Fodor, a retired travel agent who works part-time as a caregiver for the elderly, the extra work "keeps my head above water" and there's no end in sight to that financial need at age 68.

Although the work is satisfying, she confides that "financially I'm kind of scared most of the time. Because what should happen if my health and my body fail?"

Growing evidence

Growing evidence documents that people are working longer as they live longer.

Twenty-nine percent of people in their late 60s were working in 2006, up from 18 percent in 1985, according to the Bureau of Labor Statistics. Nearly 6 million workers last year were 65 or over.

Over the next decade, the number of 55-and-up workers is expected to rise at more than five times the rate of the overall work force, the BLS reported.

A slowing economy and stock market, squeezing funds set aside for retirement, also are contributing.

In an April survey conducted for AARP, 27 percent of workers age 45 and over, and 32 percent of those 55-64 said they had pushed back their planned retirement date because of the economic downturn. The telephone poll by Woelfel Research interviewed 1,002 respondents and carried a sampling error margin of plus or minus 3.1 percentage points.

"We have people who are healthier, who are living longer and have more economic reasons to stay in the work force," said David Certner, AARP's legislative policy director. "On the employer side, you have greater demand for experienced (older) workers. That all adds up to longer work lives."

Extra income needed

Lee never envisioned putting in long work weeks in his mid-60s.

The Marietta, Ga., resident battled frequent work stress before taking early retirement from Coca-Cola Co. at 55. He lay wide awake for many restless nights thinking about the job, and believes all the strain caused health problems in the form of fibromyalgia and chronic back pain.

But when his old employer called offering contract work at his specialty, mainframe systems, he gladly accepted. Tennis and golf hadn't worked out as retirement hobbies, and he decided he could use the money for occasional trips overseas and to help out his children and grandchildren.

"Going back to work wasn't the plan," he said. "But after I retired, before they called me, I really didn't have anything to do. So when they called, I jumped on it."

Lee, who makes more than $50,000 from the contract work, isn't the only one in his house working after retirement. His wife Joyce, 60, also took early retirement but went right back to work as a real estate agent.

They say the extra household income supplements their combined $3,000 a month in company pension payments and adds to $1.3 million in assets to assure their retirement will be financially comfortable - if and when it happens.

"If there's some project to be done next year, when they call I'll just go do it," he chuckled.

Short on savings

Working longer is generally the best option for those who come up short on retirement savings. And with many people's investment portfolios and 401(k)s down significantly in recent months, it has become a compelling alternative for many retirees or near-retirees to having to live on less.

"It's always been a good idea, but right now it can be an especially good idea," said Christine Fahlund, a senior financial planner with T. Rowe Price. "You really don't want to be pulling more money out of a portfolio that's already down."

In a recent report, the investment management group said continuing to work full time past one's anticipated retirement date could increase annual retirement income by about 7 percent for each additional year of work.

Working another three years - from 62 to 65, for example - and continuing to save 15 percent of salary could raise annual income from investments by 22 percent. Make it five years and boost savings contributions still higher - even better.

Putting off retirement also may enable people to delay when they start taking Social Security benefits, which can significantly increase payments.

"The longer the delay, the better" financially, said Fahlund. "To me the ideal would be 70, because you get the biggest Social Security benefit possible and all those additional years of employment. And it keeps you going mentally and physically too."

If toiling extra years doesn't sound very palatable, a wanna-be retiree may wish to consider spending some of the additional work earnings on hobbies, travel, education or other retirement dreams to make it seem more worthwhile.

"Delaying retirement retirement does not necessarily mean delaying gratification," Fahlund said.

Such a strategy, she said, could still increase retirement income from investments by 4 percent per year, or 12 percent after three years, since the retiree would not have to tap existing savings.

"A little bit bitter"

Fodor says that "to work is to have dignity." But she has little choice but to keep laboring because otherwise she couldn't pay her bills.

The Morrison, Colo., woman ended her more than three-decade career as a travel agent when work dried up following the 9/11 attacks, but hasn't stopped working through her 60s. First she sold paint at a home improvement store for seven years. Now she puts in 17 hours a week as a certified nursing assistant and another 10 to 15 hours walking dogs and pet sitting.

Divorced and with no children, she says she will have to work "forever" to make up for a lack of savings since Social Security doesn't go far enough to make ends meet.

Caring for seniors, a job she loves, pays just $9 an hour and dog walking pays less. Squeezed by rising prices and still $20,000 in debt on her condo, she stopped buying meat, beer and pricier vegetables and cheeses this year and is making other cutbacks.

"I feel blessed with the good health that I have. But I'm a little bit bitter because I don't think I should be scared financially at 68," she said, adding that she blames only herself for not saving more.

What disturbs her more than her situation, though, is that of all the men in their 60s, 70s and even 80s she worked with at Lowe's.

After losing their jobs as engineers and scientists, they now stock shelves just to survive. But they hide when fellow retirees come in, she said, because they don't want people they knew from their country clubs and higher-income jobs to see them.

When people work out of desperation and not choice, in other words, it carries little dignity.

"That's just not right," she said. "That hurts me to see that. Some of these people are supporting their grandchildren."

[jmurrieta1]

Boomers--after all the years we worked, with a lousy 2 weeks vacation, pension plans disappearing, lucky to have a 401(k)--to support the "greatest generation" in their retirement--now the Republicans have stolen our retirement.

If you don''t want to die down in that ditch you''ve been digging your whole life--better vote for Obama.

McClone''s retirement plan is marry a millionairess. Nice work if you can get it.

[edward1975-2009]

Retiring just in time to die, what a farce our system has become, that those who have worked all their lives, can''t live on the fruits of their labors. That too exist they have to work. What happened to their American dreams, just ask our politicians, who for years stole from Social Security, a private fund supposedly untouchable by government, and never replaced the money. Maybe they can explain this fraud they perpetrated upon taxpayers.

[occams_taser]

If you go by purchasing power PER hour worked, they have a much better standard of living in a bunch of European countries. But Republicans rely on the fact that most Americans either cannot afford to or choose not to travel, so they can be trusted not to have a clue.

[occams_taser]

Bush''s comment on this story: "Why that''s uniquely American"

McClone''s comment: "Quit yer whinin, you whiny old coot"

[ddaryl1]

America is fast becoming a _hit country. Allowing citizens who have worked for 40+ years and not pay them a proper pension plan and a social security wage capable of sustaining a modest lifestyle has destroyed the American dream.

But let Wllastreet take more profits, and let them ship more jobs overseas, and let Wallstreet stop pension plans for employees and force them into 401K savings plans that are at the mercy of wallstreet.

Greed is killing this coutnry, and the republicans continually reward the greedy

[occams_taser]

The article doesn''t even talk about lack of vacation and working longer hours than everybody but the Japanese. It''s not like quality of life is that great for younger people! College grads START OUT IN DEBT and have to work half their career paying that off.

America is for the rich, let''s face it.

[u-r-right]

There''s plenty of gov''ment jobs outside the political arena that still dole out decent benefits such as guaranteed pensions, low cost health and life insurance. And ain''t it great that our taxes are paying for it!

[hypnotoad72]

! College grads START OUT IN DEBT and have to work half their career paying that off.

America is for the rich, let''''s face it.

Posted by occams_taser
---

Then get told to re-train as jobs go off shore. Then look at current costs, skyrocketing because the school staff are greedy and/or costs having to go up because fewer people are attending... for more jobs that will go off shore anyway. Then there are articles like techrepublic.com''s "The Education Scam" that point out if we all had Doctorate''s degrees it really wouldn''t make much difference...

I recall the OC Register offshored its web site and graphic design, claiming "top talent". Try "cheapest wages" -- and if you looked at it yesterday, you''d note half the pages had invalid links or had generic titles... (I keep anti-script applets running -- theirs is the first site that actually vomits because of it. Somebody isn''t conforming to standard programming protocols -- shame, shame, stop the rain.)

[hypnotoad72]

And ain''''t it great that our taxes are paying for it!

Posted by u-r-right
-----

Okay, what''s your solution? Assuming you do respond, it''s going to be a very funny read... indeed, do you know anything at all if all you can do is parrot one or two lame-brain catchphrases...?

[credibility2]

This is what happens when companies are allowed to renig on the promised pensions to their retired workers. It should be criminal, since working for a certain period of time had an intended benefit of full pensions. Companies made the offer and the worker accepted the offer. In legal parlance this is called mutual assent, the two binding components of a contract. By companies backing out of paying pensions to their retirees, they in effect have broken the contract and should be held liable for doing so. I know of many companies that no longer even offer pensions, just 401k plans and even those aren''t well managed or invested; more malfeasance and potential criminality.

[lovesamerica]

I know I will never retire, unless I die beforehand[from overwork] I will be one more obituary that says..so and so passed away after 67 years of service....

[jmurrieta1]

"What disturbs her more than her situation, though, is that of all the men in their 60s, 70s and even 80s she worked with at Lowe''s.
After losing their jobs as engineers and scientists, they now stock shelves just to survive. But they hide when fellow retirees come in, she said, because they don''t want people they knew from their country clubs and higher-income jobs to see them. "



But Bill Clinton and George Bush said we need to have hundreds of thousands of Asians come to the US to work on H1B tourist visas because there were no American scientists or engineers!

Didn''t they?

[brianbwb-2009]

How soon we forget, it was Bush who originally pushed to raise the age of retirement to 72, most likely hoping that a number would die before collecting retirement benefits.

This is not accidental, nor was it unforeseen.

[u-r-right]

Okay, what''''s your solution? Assuming you do respond, it''''s going to be a very funny read... indeed, do you know anything at all if all you can do is parrot one or two lame-brain catchphrases...?


Posted by hypnotoad72 at 01:56 PM : Sep 01, 2008

There is no solution...unless you are one of those who landed one of those gov''ment jobs with the nice benes when you were fresh out of college. Then you could still easily retire between 55-60 years old.

I''ve been saying for 3-4 years now, we are all going to be greeters at Wal-Mart someday. There won''t be any choice for most of us who are still in our 40''s and younger. No matter how much education or "re-training" you have.

They tell us to sit tight on our 401ks for the long haul. What is happening to the 401ks of people trying to retire now???? I lost $8k in mine last time I checked which was a month or two ago. I''m afraid to look now.

[skeezix06]

Say hello to reality. No matter who is elected, taxes will have to go up to pay for the disaster in Iraq. Ain''t nothin'' free in life, not even death.

[wl7bzh]

I''m doing pretty good in retirement. I''m single, never got married, never had children, so as a result.....

I never did my patriotic duty by having to give some female a house, alimony and child support or pay for college.

[tothestars2]

Didn''t see any comment in this article that PEOPLE ARE LIVING LONGER today! Such a non story!

[wl7bzh]

Didn''''t see any comment in this article that PEOPLE ARE LIVING LONGER today! Such a non story!

Posted by tothestars2 at 07:21 PM : Sep 01, 2008


Married people don''t live longer, it just seems longer.

[mawskrat]

work is highly over rated!

[whitemale08]

Once a "serf" die a "serf" and Republicans want to keep it that way. What''s their economic recipe for "serfdom"?

1. Borrow 100s of billions to Invade a country that never attack us so you cannot finish looking for the enemies who did.

2. Tell Wall Street to not worry about paying for the wars because Main Street is going to pay for it through "inflation" the "poor man''s tax".

3. Reward companies for sucking out what''s left in jobs just like Ross Perot warned back in the early 90''s

4. Propose "privatizing social security" so that it will be automaticly rejected and then change the "retirement" age.

Like I said before, "Republicans hate the ''middle-class'' and the seniors and they''re just too stupid to realize it.

[sistatee-2009]

Like I said before, "Republicans hate the ''''middle-class'''' and the seniors and they''''re just too stupid to realize it.
Posted by whitemale08 at 12:03 AM : Sep 02, 2008

Can''t argue that, BUT so do the Dems. NAFTA, signed into law by Blue-Dress-Sploog, destroyed the middle-class.

[tootall10142]

I worked for the U.S civil service for twenty years after the nam.One day i went to work and my knee locked up .They sent me home at 55.I needed that job to maintain it was my therapy.One day i met the young man that took my place aqnd he was civil hire with no military back ground, after talking with him awhile i felt better bowing out to a younger person the gleam in his eyes and the dreams he dreamd for his family made me cry alone of course.Iwas in southeastasis killing people at his age .Now for the first time in decades i got to see hope in the face of a american lad and a smile that would blind a welder.This country has and continues to be good to me and i wish the best for all that have had to stop short on thier dreams .I have seen the look of no hope and the look of death.I know from living the expierence it is and continues to be worse in other countries.Be glad you have generics in your cabinets.I met a man of 30 years that had never drink a coke until i broke standard operating protocall and gave him a case.Iwas docked two weeks pay and my co said now the rule has been broke and the punishment administered take that man five cases and charge them to me.Look up not down theres nothing there but dirt.

[mytoosense]

Bush Administration recommendations for the care of a horse:
1. Save money by avoiding food and water expenses.
2. Run horse till it falls over dead.
3. Blame horse for being lazy and ungrateful.
4. Have taxpayers provide money for new horse.

[payasyougo]

"Laboring Longer A Growing Trend In U.S."

----

Oh, I thought this was going to be an article about paying taxes....

[mytoosense]

America is a beautiful Country full of wonderful destinations for visitors from all over the world who have the time and resorces to visit our great land.

And visitors to America can count on plenty of room at our vaction destinations since the average American can''t afford nor has the time to enjoy America''s treasures since they are over worked and under paid from the cradle to the grave.

Looking for an increase in American tourism in your country? forgetaboutit.

[payasyougo]

"Like I said before, "Republicans hate the ''middle-class'' and the seniors and they''re just too stupid to realize it."
----

The only "hate" going around is liberals towards conservatives. I know no conservatives that "hate" liberals rather, it is frustration that a significant part of the population would believe liberal leaders selling the government must be the one to take care of you (with the cost burden shifted to someone else) instead of taking care of yourself with your neighbors helping each other during times of catastrophes (which worked well for hundreds of years). This is the development of a lazy, dependent society that will ultimately result in disappointment and a significant backlash some day.

The middle class is composed of about an equal mix of Republicans and Democrats. If it were not, recent elections would not be so close as they are divided along party lines. None of the republicans I know hate themselves.

The Clinton family reported $100M recently. Warren Buffet is a billionaire. You can''t label and vilify the "rich" without including some prominent democrats. Well, maybe you can try.

There is a belief by some that if you say it enough times it becomes true. After a while, the boy that cried wolf was ignored.

[eggy1620]

%u201Cbecause they don''t want people they knew from their country clubs and higher-income jobs to see them.%u201D

%u201CWhen people work out of desperation and not choice, in other words, it carries little dignity.%u201D

Yeah, Republicans should not have to live such shameful lives.

[jamesetling]

Simple solution to retirement planning. Marry someone who has a lot of retirement money saved. I''m 46 years old. My wife is 47. We''ve been married for two years. I had stashed $41,000 when we married. She had stashed an astonishing $215,000. She plans to keep stashing the max amount for the next 15 years. I''ll stash some too if I keep working that long. Even invested conservatively, we should have well over one million in fifteen years. Our fifteen year mortgage will be paid off then. Had I not grabbed her up, I''d be working til age 70, at least.

[eggy1620]

Another simple solution to retirement planning %u2013 do not have kids. You%u2019ll have an extra $100k to $150k per child that you did not have to raise.