The big pay off from working a few extra years
When he turned 65 in2 013, Lee Klass never considered a retirement party. Instead, he continued doing pretty much what he’ s done for years, setting out from Portland, in his Freight liner 18- wheeler and hauling loads of packaged food and consumer goods across the US .“I still enjoy driving and the adventure of this job, and I’ m not wealthy ,” says Kl ass, who took home about $25,000 last year and has no retirement savings plan.
Growing numbers of Americans aren’ t ready to give up careers they find rewarding at 65, long the standard retirement age, especially when they can expect to live an additional 20 years on average. By continuing to work through their 60 sand beyond, they can bulk up their retirement funds and Social Security benefits and com press the time they’ ll have to live on savings. Half of US workers over 59 don’ t plan to retire before age 70, according to a 2017 survey by job-search site Career Builder. About 27 percentof65- to74-year-oldshavefull- orpart-time jobs, and the Bureau of Labor Statistics predicts that will jump to 30 percent by 2026.“It’ s a triple win— and for middle-class Americans especially, it’s vital longevity risk management ,” says Leon La B rec que, a financial manager at LJPR Financial Advisors.
La B rec que recently persuaded a 65- year-old sales man to work for two more years. By staying employed until 67, he could add $48,000—two annual contributions of $24,000— to his 401(k) retirement plan, let his existing savings of about $450,000 keep growing, and delay receiving Social Security so his check would be 16 percent larger. And while mandatory retirement no longer exists, age discrimination does. Employers can push older workers out by eliminating their positions during restructurings, and landing a new job later in life is difficult. A recent AA RP survey found that 44 per cent of older job applicants say they’ ve been asked for age-related information from potential employers, even though this is illegal.
But in today’ s tight labour markets, more companies are relying on older employees. People 55 and above are expected to comprise more than a quarter of the workforce by 2020, up from 14 percentin2002. <