Your loved one may want to re-enter the workforce after retiring. Several factors are fueling the trend of working beyond retirement age. Here are some reasons that may apply to your loved one.
1. Most Retirees Don’t Have Pensions
Since the 1970s, the number of employees receiving pension benefits has plunged from 66 percent to 10 percent. Being pension-less significantly lowers the income on which retirees previously relied.
Private companies have shied away from offering pensions due to the investment risks involved. Currently, retirees who typically receive pensions work full-time for the government, utilities, or large corporations. Union members such as teachers also have this good fortune.
Additionally, pensions are less common in certain industries and geographic areas. Retirees living in southern states are less likely to have pensions than those in northeastern and Mid-Atlantic states.
Many older adults are enjoying the benefits that a professional career can provide for their personal development and overall health. However, several age-related conditions can make it more challenging for seniors to continue working after retirement. Seniors can face a variety of challenges as they age, many of which can be mitigated with the help of professional in-home caregivers who provide high-quality in-home care. Birmingham families trust in Home Care Assistance to help their elderly loved ones age in place safely and comfortably.
2. More Seniors Are Delaying Receiving Social Security Benefits
With the ever-rising inflation rate, the cost of living increases annually. However, the average social security payment isn’t enough by itself to cover monthly expenses. After retirement, benefits provide about 40 percent of a worker’s income.
For example, in August 2016, the average monthly benefit was $1,350 for a single senior, $2,050 for a married senior with one wage earner, and $2,700 for a couple who both worked. Although social security benefit amounts are adjusted to keep pace with inflation, they’re often inadequate as a sole source of income.
Seniors can raise their monthly social security payments by working until age 70. By delaying receiving benefits, payments continue to increase each year by 8 percent. More elders who are physically able to work are choosing this option.
3. More Employers Are Recognizing the Value of Hiring Older Workers
Seniors have a reputation for being reliable, skilled, diligent, and productive. They also tend to be more loyal than younger workers. Such traits save employers money on hiring and training costs. Consequently, companies are developing programs that maximize senior skills and experience. For example, mentoring programs pair veteran employees with younger ones.
If your loved one desires to work part-time, ideal jobs to consider are retail associate, tour guide, consultant, teacher’s aide, driver, athletic coach, tutor, hair salon assistant, and convention center employee. The temporary staffing industry also favors seniors.
Another option on the rise among seniors is working from home. Industries such as banking, customer service, finance, government, insurance, and information technology are amenable to working remotely.
4. Seniors Want Employer-Paid Healthcare Insurance
Most employers don’t extend healthcare coverage to retirees. Except in the case of disability, Americans aren’t eligible for Medicare until age 65. However, Medicare doesn’t cover all healthcare services, including dental procedures, dentures, eye exams, prescription eyewear, audiology exams, hearing aids, routine foot care, acupuncture, and many prescription drugs. Co-pays for medications can be quite costly.
Even Medicare-covered services and supplies require meeting a deductible and making co-payments. However, some healthcare providers accept both private insurance and Medicare.
In the US, full-time employees are eligible for employer-paid insurance if they work for a company of 50 or more workers. This federal law has been in effect since January 2014.
Additionally, US law mandates that large employers must offer healthcare coverage to employees working 30 or more hours per week. With these laws in effect, more seniors are working so they can receive employer-paid healthcare insurance.
5. Savings Don’t Cover Living Expenses
Continuously deflating interest rates are reducing yields on certificates of deposit, government bonds, and savings accounts. Since retirees tend to shift investments into these instruments, they have less spending money available.
6. Retirees Often Miss the Fulfillment Working Provides
A 2010 joint study by the Families and Work Institute and Boston College revealed many non-financial incentives for continuing to work. Researchers asked employees age 50+ for their reasons. Roughly one-third said they’d be bored otherwise. About 15 percent cited the need to feel useful and productive.
Once seniors reach retirement, they miss interacting with clients, customers, or other coworkers. Many seniors like the mental stimulation of learning new things. Reporting to work provides structure to living and a sense of belonging to a group.
Companionship is invaluable to senior retirees and can enhance their quality of life. For families living in Birmingham, Alabama, respite care can be a wonderful solution when their aging loved ones need companionship and socialization a few hours a week or just need minor assistance with daily household tasks. At Home Care Assistance, we thrive on helping seniors maintain their independence while living in the comfort of home.
7. Seniors Now Enjoy Better Health than Their Ancestors
Thanks to advances in healthcare, people are able to work beyond the typical retirement age. Chronic medical conditions in the current senior generation are better managed.
Working past age 65 can reduce the risk of death from all causes by 11 percent. This was the finding of research conducted by Oregon State University. Subjects were 2,956 people evaluated over an 18-year period from 1992 until retirement in 2010.
Retirees were divided into two groups, either healthy or unhealthy. Most retired at age 65. Among the healthy seniors, those who worked just one year longer than the other retirees had an 11 percent lower death risk.
Seniors in the unhealthy category also gained longevity. By working one year more, their mortality risk dropped by 9 percent. Researchers believe the increased longevity is related to the social, economic, cognitive, and physical benefits of working.
Living with a serious health condition can make it challenging for seniors to age in place. However, they can maintain a higher quality of life with the help of professional live-in care. Birmingham seniors can benefit from assistance with meal prep, bathing, transportation to the doctor’s office, medication reminders, and much more. To create a customized care plan for your aging loved one, call Home Care Assistance at (205) 438-6925 today.