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 Dives 797 Points as Government Opens: Stock Market TodayThe process of pricing and re-pricing realities old and new never stops, and next week promises to be at least as exciting as this week.
-
3 Ways High-Income Earners Can Maximize Their Charitable Donations in 2025Tax Deductions New charitable giving tax rules will soon lower your deduction for donations to charity — here’s what you should do now.
-
What's Next for the Fed — as an Institution?The U.S. central bank was already contending with economic challenges. Now comes a political one.
-
Dental Cost Advice for New Retirees, From a New RetireeWhat I faced in my first dental bill after retiring.
-
Credit Score News Could Help First-Time HomebuyersLenders who sell mortgages to Fannie Mae and Freddie Mac used to only be able to use FICO for loan qualification. Now there's VantageScore, owned by the three major credit bureaus.
-
Smart Strategies for Paying Your Child an AllowanceBy giving your kids money to spend and save, you’ll help them sharpen their financial skills at an early age.
-
My Four Pieces of Advice for Women Anxious About Handling MoneyTalking about money can help you take control of your finances.
-
How to Choose the Best Charities to Donate ToWhile you set your giving strategy, think about your values, and select organizations that will put your contributions to good use.
-
Tariffs, Inflation, Uncertainty, Oh My: How to Feel Less Stressed About Finances NowTariffs, high prices and an uncertain economy getting you down? These steps can help.
-
Three Veterans Charities to Support As Charitable Season StartsIf you're looking for a worthwhile cause to support for Veterans Day and beyond, consider these three highly rated charities that support veterans and their families.
