Over the last decade, our relationship with work has altered drastically. From remote work becoming normalized to work/life balance being more prioritized, it seems today’s employees are becoming disillusioned with the idea of working tirelessly until retirement.
However, in seeming contrast to these sentiments, new data is showing that employees are retiring at later and later ages. Though this may seem odd, there are two key reasons that employees are choosing to work later in their lives. Specifically, benefits in the realms of health and finances.
Understanding the positive ways that working longer can impact your health and your bank account is key to gaining perspective on our evolving work landscape.
Here is why working longer could be good for your health and your wallet.
Work Can Have a Positive Impact On Mental Health
Though many younger professionals may view work as a hindrance to their social lives, for older adults, work can be an extremely healthy social setting. Conversely, the act of retiring can cause many older adults to experience feelings of isolation, loneliness, and — in some cases — even depression.
According to Denise Burnette, Ph.D., Samuel S. Wurtzel Endowed Faculty Chair in Social Work, Ph.D. Program Director and Professor in the School of Social Work at Virginia Commonwealth University, delaying retirement can have a slew of positive impacts. These include “continued social engagement and intellectual stimulation, which can positively affect reported health, mental health, and life satisfaction.”
The connection between community and health can’t be understated in this context. As such, it makes sense that many older professionals are choosing to put off their retirement plans to continue enjoying a robust sense of community with coworkers and improve their overall quality of life.
Inflation Is Making Life More Expensive
Chances are, you’ve noticed a steep increase in the cost of living over the last several years. From inflated food costs to increasingly exorbitant home prices, staying afloat in today’s world is clearly becoming more expensive.
As a result of this significant inflation, many of those eyeing their retirement ages are starting to push those dates back. Rather than have to live out the rest of their years on a tight budget, many older adults are deciding that they’d prefer to work a few extra years to bolster their retirement funds.
While there’s no economic crystal ball that can predict the future with complete accuracy, the current economic landscape is making it clear that pushing back your retirement age can make a substantial impact on your finances. Consequently, if you’re someone intent on retiring with comfort, it may be a good idea to work a little longer and step into retirement with a larger savings account.
Flexible Work Options Are Making It Easier to Put Off Retirement
For decades, the traditional in-office, nine-to-five work schedule was the status quo at companies across industries. Today, however, the work landscape has evolved significantly with remote work, hybrid work, and flexible workweek options becoming normalized.
Given this increase in flexibility, professionals nearing the end of their careers now have options that can help make work more convenient and less taxing as they approach retirement. This being the case, prolonging employment is beginning to seem like a more viable option for many professionals given the health-related and financial benefits.
However, though these flexible options may be more convenient for some, Dr. Burnette highlights the fact that “some older adults will lack the requisite technology to work from home.”
Despite this, many professionals in future generations will likely be able to take advantage of technology and flexible work options to push back their retirement ages. As a result, these work practices may prove to be a key factor in allowing more professionals to work longer and enjoy the benefits of a prolonged retirement.
Why Prolonging Retirement Isn’t an Option For Everyone
Though there are clear benefits to pushing back retirement ages, unfortunately, this practice isn’t feasible for everyone. Believe it or not, the healthy life expectancy of adults in America has actually been decreasing over the last several years.
Dr. Burnette notes that “healthy life expectancy increased dramatically over the 20th century but has now started to fall. In 2019, life expectancy in the U.S. had risen to nearly 79 years. But it fell to 77 in 2020 and further, to just over 76, in 2021.”
As a result of a decreasing healthy life expectancy, many older professionals may have their ambitions to continue working cut short because of declines in health. This could involve having to live in a nursing home or an assisted living facility, making it difficult or impossible to continue working. Consequently, not all professionals will be able to enjoy a later retirement.
Pushing Back Retirement Is Becoming Increasingly Popular
While sentiments about work have changed substantially over the last decade, it’s becoming harder and harder to ignore the benefits that can come from working longer. From finding more financial security to improving your mental health and sense of community, putting off retirement can genuinely benefit your life. In the coming years, retiring later will likely become more normalized as more professionals recognize the advantages of working longer.
Photo Credits
Image by StartupStockPhotos from Pixabay
Guest Author Bio
Sarah Daren
With a Bachelor’s in Health Science along with an MBA, Sarah Daren has a wealth of knowledge within both the health and business sectors. Her expertise in scaling and identifying ways tech can improve the lives of others has led Sarah to be a consultant for a number of startup businesses, most prominently in the wellness industry, wearable technology and health education. She implements her health knowledge into every aspect of her life with a focus on making America a healthier and safer place for future generations to come.
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