Almost half of baby boomers and more than one-third of Generation X expect to work past age 70 or do not plan to retire at all, highlighting the need for backup plans in case life’s unexpected events get in the way of such goals. According to a study by nonprofit Transamerica Center for Retirement Studies in collaboration with the Transamerica Institute, 49% of baby boomers expect to, or already have, extended their working lives past 70 or do not plan to retire. Their reasons for doing so are most as likely to be their health (78%) or their finances (82%).
“Baby boomers are extending their working lives, which can help bridge savings shortfalls. However, it’s important for them to have backup plans because life’s unforeseen circumstances could derail their best intentions,” said Catherine Collinson, chief executive and president of Transamerica Institute and TCRS. Collinson pointed out that most people retire sooner than they had planned, with the majority retiring before age 65 due to employment-related reasons, their health or the health of a loved one. “That’s why it’s so important to have contingency plans,” Collinson said. Baby boomer workers (born 1946 to 1964), who were born at a time when pensions were the norm, faced a massive shift during their lifetime away from such retirement safety nets. That shift put the onus on the individual to save for retirement, rather than the employer. “Retirement is a broader societal issue and th …