Why plans to work past 65 may not pan out

Age- and health-related factors can foil plans to put off retirement

Why plans to work past 65 may not pan out
For many pre-retirees who face increasing burdens on their wealth and income, the first option in increasing their nest egg is to work past 65. But the decision to retire later may be out of their hands.

A survey of US adults by research giant Gallup found that 68% plan to keep working until they’re 68 or older, reported the Wall Street Journal. A separate study by the Employee Benefit Research Institute found that 38% of workers believe they’ll retire at age 70 or later.

But the Gallup poll found the average age of retirement was 61 years old, while the Employee Benefit study discovered only 4% of retirees stopped working at age 70 or older. Job prospects for US retirees also seem dim, as a poll by the Federal Reserve found just 7% of retirees saying that they were earning income from a job.

Numerous factors can throw off plans for delayed retirement or post-retirement work. According to the Journal, they can be forced to retire because of health problems, limited work prospects, employers’ preference for younger workers, and a sudden need to look after a loved one.

Building and sustaining a nest egg is becoming more challenging for Canadian adults. Aside from increased life expectancies and living expenses, more are deciding to help their adult children through their own financial challenges. Canada’s seniors are also reportedly taking on more debt, with a recent Equifax report saying that the average consumer debt among the group increased by 4.3% in the second quarter.

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