Why High-Powered People Are Working In to Their 80s.

Retirement has changed. It used to be people would work and work and work and then retire. They would have a pension and social security and that would be their income. Now there are very few pensions. People are living longer. So that has changed how we look, like, plan, and prepare for retirement. There now is a big trend for high powered people over 80 working longer.

Roughly 650,000 Americans over 80 were working last year, according to the Census Bureau. This is about 18% more than a decade earlier. Retirement today is different than it was years ago. We are living longer. We have 401K’s and IRA’s instead of pensions. We have social security, but it is not what it used to be. People that are working are paying into social security and that money is going directly out to people that are receiving social security.

So, retirement today is not like what it used to be. There will be almost twice as many 75 plus workers than there were in 2020. People are working longer. People are living longer. 100-year life spans are becoming more common. This forces people to work longer to pay for their lifestyles.

The Bureau of Labor Statistics projects that workforce participation among people 75 and older will climb to 11.7% by 2030 from 8.9% in 2020. Think about this: If you accumulate $1,000,000 in retirement assets and pull a 5% income stream off of this amount this means you will have $50,000 a year in income. The question becomes can you live off of $50,000 a year? Sometimes that is not enough in income. People are living longer needing more income makes sense then that they are working longer.

In the S&P 500, 1.6% of board members are at least 80, up from 1.3% a decade ago. This is according to Equilar, which tracks corporate leadership trends. Not only is I because people are living longer but people want to stay working not for money but to stay active and just because they want to keep working. There is also a fear if one stops working that they will lose their identity, invitations will stop, and all the attention will stop.

So, keep going. Keep saving. Keep investing. Keep planning. Be mindful of your money and your plan.

?

Opinions expressed in the attached article are those of the author/speaker and are not necessarily those of Raymond James. All opinions are as of this date and are subject to change without notice. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including diversification and asset allocation. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. The forgoing is not a recommendation to buy or sell any individual security or any combination of securities. The information contained in this report does not purport to be complete description of the securities, markets, or developments referred to in this material. Past performance is no guarantee of future results.

?