Are you Planning to Work During Retirement?

More and more Baby Boomers are beginning to work throughtheir retirement; some because they want to and others because they have to.  Approximately 72% of people claim that they have a desire to work during their upcoming retirement. 

Merrill Lynch of Bank of America and Age Wave conducted a study that discovered nearly half of current retirees stated they either have or will work during their retirement.  The majority of these soon to be retirees say that they want to work as opposed to having the financial need to work.

Nearly a century ago, the average retirement age in the United States was 60 years old and life expectancy was 47 years old.  People had fewer years to enjoy the leisure of retirement; however, since then lifespans have become longer, changes have taken place in the labor-market and the dawn of Social Security in 1935 created a mass alteration.  Beginning in 2010, the retirement age decreased to 64 years old and the life expectancy age radically increased to the 84 years. 

Some people cannot imagine not working or doing anything to create productivity for approximately 30 years and instead choose to continue working.  Alongside this, is the fact that few people can survive 2 to 3 decades without any kind of financial income and still manage to live at their same standard of living. 

As 78 percent of Baby Boomer move into retirement, some continue to work out of a desire, other because they have to, and still some because they want something productive to participate in during retirement.  70 percent of the economy is determined and influenced by consumers; do you believe that Boomers will spend less during their retirement? Yes, they will; they are already spending less than when they had kids at home.  How will this affect the stock market if Boomers pull more from the stock market than they put in? If Boomers withdraw more than they put in, how do you believe this will affect the stock market? And, how will this affect your retirement portfolio and your financial security?

It may be time to run a stress test on your retirement portfolio to be better aware of how these factors might affect you.  Here at Cornerstone Retirement Group, we have tools that we use every day to help people just like you to take a hard look at all of these economic events that are happening in the world to determine whether they will help you or harm you with your specific portfolio, and to help you re-arrange your portfolio, so that if these events do happen, you benefit from the outcomes you want.