Money is not the main reason older people work beyond their retirement age, according to a new survey.
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Some have no choice to keep on working to pay the bills because they have no savings or fail to qualify for the state pension.
But the majority have other reasons for staying in work, says research by US bank Merrill Lynch.
Six reasons to keep working
The top six reasons were:
- Mental stimulation was the main reason 62% of over 60s got up in the morning and went to work.
They cited dealing with customers, writing reports and day-to-day business activity kept them mentally active.
- Working keeps pensioners mobile and fit. Almost half (46%) enjoyed commuting and physical activity at the workplace because it stopped them vegetating in front of the TV and gave them a reason to get up in the morning
- Although older workers are not generally involved in business meetings, they still interact with colleagues and customer and for 42%, those social connections stop them feeling lonely in retirement
- Work defines identity for many people and retirement can mean losing some admiration and respect from others. Working in retirement reinforces self-worth for 36% of pensioners, the study revealed
- Having a job gives pensioners a challenge that many find missing without work in the lives.
Even working part time or a starting a small business at home means setting goals and working to attain them, which is important to 30% of retirees
- While the over 60s enjoy working, they want less stress in their lives, which is why only 5% look for full time work in retirement.
Many want to work at their own pace and most like to have time for their own hobbies and activities as well as a job
Cash buffer
While money is important, seven out of 10 retirees work for the challenge, stimulation and social connections rather than cash.
Most retirees say they do not need the money to get by because they already have savings and a pension income.
Some agree that carrying on in a job for a year or two after retirement gives them a better financial buffer and a bit more to spend on having fun and helping relatives.
Read the full report “Finances in Retirement: New Challenges, New Solutions”
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