The idea of retirement as a long vacation after 40 years on the job may be on its way out. More and more Americans are enjoying second acts and envisioning retired life as just a later phase of their working lives.
According to new research from Empower, a financial services company, over half (58%) of Americans (64% of Baby Boomers and Gen Xers) may be in the job market post-retirement and are open to working indefinitely — and the reasons aren’t purely financial. Would-be working retirees are motivated by values such as personal fulfillment (41%) and having a sense of purpose (37%), as much as potential financial needs (40%).
To explore what defines the ideal retirement in America, Empower surveyed over 1,000 adults about their views on living locations, activities and concerns. Here are more findings:
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Top retirement locations in the U.S.:
- Florida
- New York
- California
- Colorado
- Texas
Top retirement locations abroad:
- Italy
- Thailand
- Japan
- Mexico
- Barbados
Top retirement activities:
- Traveling
- Gardening
- Hiking
- Art
- Volunteering
Top retirement concerns:
- Inflation
- Insufficient savings or running out of money
- Unexpected expenses
- Healthcare costs
- Affordability of housing
A separate survey by the Pew Research Center reports that roughly one in five Americans aged 65 and older were employed in 2023 — nearly double the share of those who were working 35 years ago. And not only are older workers increasing in number, but their earning power has grown in recent decades. In 2022, the typical worker age 65 or older earned $22 per hour, up from $13 in 1987.
The Pew study also found that older workers are working longer hours with higher levels of education and greater pay per hour. Older workers’ overall contribution to the labor force has grown considerably. In 2023, they accounted for 7% of all wages and salaries paid by U.S. employers. That is more than triple the share in 1987 (2%).
Note: This item first appeared in Kiplinger’s Retirement Report, our popular monthly periodical that covers key concerns of affluent older Americans who are retired or preparing for retirement. Subscribe for retirement advice that’s right on the money.
Related stories
-
Dow Adds 516 Points on Broad Optimism: Stock Market TodayEasing trade war tensions and promise from early earnings reports has investors looking on the bright side to start the week.
-
Dave Ramsey Tells Us the Biggest Retirement Mistake You Can MakeThe talk-show host, author and podcaster tells Kiplinger what people can do to ensure a happy retirement.
-
What to Do About These Three Medicare Changes During Open EnrollmentWith costs due to rise sharply next year, look for coverage that protects your wallet as well as your health.
-
This Is How Much You'll Have to Pay to Share Streaming ServicesIt now costs more to share streaming services with family members who don't live with the account holder. Here's what Netflix, Amazon, Hulu and Disney+ charge.
-
Credit Cards That Actually Reward Your LoyaltyIf you have bank or investment accounts with your credit card issuer, you may qualify for extra cash back, waived fees and other benefits.
-
I Wrote About Credit Cards for Years: Here's My Credit Card Rewards StrategyThis is how I maximize cash back and points for various purchases and leverage premium card benefits such as airport lounge access and annual fee waivers for active-duty military members.
-
Don't Make These 'Buy Now, Pay Later' MistakesDon't Make These 'Buy Now, Pay Later' Mistakes
-
6 Steps to Protect Your Retirement SavingsDon't let a shaky economy and volatile market derail your retirement. These moves will help ensure your money lasts as long as you do.
-
Eight Tricks to Shop for Glasses if You're Over 50Shopping for glasses often gets trickier — and more expensive — as you age. If you've over 50, take these steps when you set out to buy a new pair.
-
Decluttering Tips to Get a Head Start on DownsizingStrategies include starting small, adopting a system, getting help from others and being ruthless about what to keep, even when it comes to sentimental items or inherited possessions.
