Financial Need Influences Work in Retirement for Older Adults

Retirement is no longer synonymous with ceasing to work. In fact, many people feel that leaving the workforce isn’t financially feasible. According to a new survey by AARP Research, 42% of adults age 50-plus either are working in retirement for financial reasons or expect to do so. 

Key Findings

Over half (57%) of all nonretirees age 50-plus expect to work in retirement for financial reasons.

• Among nonretirees who are currently working, 63% think they will need to work in retirement for financial reasons 
  
  
• Among nonretirees who are not currently working, 40% think they will need to work in retirement for financial reasons.

Roughly 3 in 10 (29%) of all retirees age 50-plus are either already working in retirement for financial reasons or expect that they will need to do so. 

• Among retirees who are currently working, 55% say the main reason they continue to work is out of financial need.
  
  
• Among retirees who are not currently working, 25% think they will need to work during their retirement years for financial reasons.

Methodology

The survey was fielded May 19–23, 2022 among 1,016 adults age 50-plus in the Foresight50+ panel. Funded and operated by NORC at the University of Chicago, Foresight50+ is a probability-based panel designed to be representative of the U.S. household population age 50 or older.

For more information, please contact S. Kathi Brown at skbrown@aarp.org. For media inquiries, contact External Relations at media@aarp.org.

Suggested citation:

Brown, S. Kathi and Colette Thayer. Many Older Adults Expect to Work in Retirement for Financial Reasons. Washington, DC: AARP Research, July 2022. https://doi.org/10.26419/res.00557.001