Both men and women with college educations are now more likely to continue working into their ‘retirement years.’ In fact, almost half of women working into their late sixties are still working full time, an increase of 30% in the last 20 years. Furthermore, this trend is expected to continue according to research performed by economics professors Claudia Goldin and Lawrence Katz of Harvard University.
So why are women putting off retirement?
-Women like their jobs: Working women have job skills, connections and careers that they like and can continue to pursue.
-Women live longer: Statistically, women can expect to live longer than men and by working longer more money can be saved and Social Security benefits can be increased. In addition, women who retire early may be too young to qualify for Medicare.
-A negative cause- Debt: Some women are putting off retirement because they are financially unable to retire. Older Americans are nearing retirement with increased debt levels. Two-thirds of people 65 to 74 have debt and people 65 and older are the fastest growing group of bankruptcy filers. Women with debt – particularly mortgage debt- are more likely to end up working longer because they have to.
What am I seeing? I’m noticing many woman are not ready emotionally ready to retire, whether they are financially ready or not. They like their jobs. They find a sense of purpose, engagement and routine, all of which are important.
Your next steps: So, if you are starting to think about retirement, reach out and let’s discuss your financial readiness. And be sure to include plans to stay engaged with others, maintain a sense of purpose and develop a routine outside of work.