Many not-yet-retired Baby Boomers—60 percent—expect to keep working at least part-time after they hit 65, according to a new study. Yet, that view might be far too optimistic.
Job prospects are excellent for boomers right now. Part-time and freelance roles have become more prevalent, and among boomers who have already found post-retirement work, 80 percent said the hunt was easy. Yet, the pay for those jobs is often less than most expect.
Only 1 in 5 Baby Boomers who are still working say they’d be willing to take a pay cut when they move to a post-retirement job. However, nearly three-quarters (72 percent) of current retirees who are working earn less than they did in their old roles. More than half (53 percent) are making “much less.”
What’s more, many Baby Boomers are unable to work as long as they’d like. Nearly 7 in 10 (69 percent) of middle-income retirees said they would have stayed longer in their old careers but had to retire early for reasons including health problems (39 percent), being laid off (19 percent), or caring for a loved one (9 percent).
Experts say working longer can increase retirement preparedness and boost happiness for retirees. Roughly 80 percent of retirees who found new jobs say they like their current careers better than their old ones. However, they say, boomers should have a Plan B in place in case they’re unable to work or wind up making less money than planned.