4 retirement myths and realities

Myth: Retirement means the end of work.

Reality: In prior decades, workforce growth in the U.S. was driven by an influx of younger workers. During the past seven years, however, workers aged 55+ accounted for virtually all workforce growth, according to the Bureau of Labor Statistics. And, according to a recent study from Bank of America Merrill Lynch, 80% of working retirees say theyre doing so because they want to vs. because they have to (20%.)

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Myth: Retirement is a time of decline

Reality: A new generation of working retirees is pioneering a more engaged and active retirement. Eight-three percent of retirees in the Bank of America study say that working in retirement is a kind of antidote to aging because it helps people stay more youthful, while 66% say that when people dont work in retirement, their physical and mental abilities decline more rapidly.

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Myth: People primarily work in retirement because they need the money.

Reality: While a large number of retirees are definitely working for the money to pay the bills, many more are motivated by nonfinancial reasons. When working retirees were asked what they feel is the most important reason to work, they were twice as likely to say staying mentally active (62%) as they were to say for the money (31%.)

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Myth 4: New career ambitions are for young people.

Reality: Nearly three out of five (58%) working retirees transition to a different line of work in retirement, and are three times more likely than younger workers to be entrepreneurs or retire-preneurs. Most retirees who moved into a new line of work did so to have a more flexible career (51%) with more fun and less stress (43%.)

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