From CNBC: 2024-09-17 13:20:08

A new CNBC and SurveyMonkey survey reveals 27% of workers plan to work in retirement to supplement their income, but retirement experts caution this may not be feasible if unexpected health complications or layoffs prevent working into one’s late 60s or 70s. “It sounds great on paper,” says financial planner Philip Chao.

Many Americans retire earlier than planned due to hardships like health issues or layoffs, debunking the assumption of a later retirement age as an “escape valve,” says Chao. More than half of full-time workers in their early 50s get pushed out of their jobs before retirement, often resulting in lower earnings if they find another job, according to a 2018 Urban Institute paper.

Working longer has financial benefits such as delaying drawing down savings and Social Security benefits, leading to continued growth in one’s nest egg. Surveys show some people also work longer because they enjoy it, while studies suggest potential non-financial benefits like improved health and longevity. A shift from manufacturing to service-based roles facilitates working later in life, according to Gallup analyst Jeffrey Jones.

Read more: Planning to delay retirement may not rescue you from poor savings