Denial runs deep when it comes to money and retirement.

Older adults are working longer, but at first blush they contend they are working because they want to. Only when pressed do they admit they need the money.

The majority said they continued to work because they either can or want to.

“Most of these career extenders don’t have enough savings. I think it could be denial. They’re not facing the reality of the situation,”

Less than half (43%) of those surveyed initially said they are working because they need money to cover expenses now or in retirement. Delving further into their financial motivations, nearly all, 92%, indicated they need or want more money for retirement. 

The Bureau of Labor Statistics estimates that over the next decade the labor market will continue to age, with the greatest growth coming from workers aged 55 and over. Continued growth is expected in the workforce participation rate of those past traditional retirement years of ages 65 to 74. About 32% of those in this age group are expected to be working in 2030, up from 27% in 2020 and 19% in 2000. 

Most of this fastest-growing segment of the labor market—employment extenders—indicate they have not saved enough for retirement.

As many as 60% said they have less than $500,000 in savings, including all investments, savings accounts, pension plan/defined-benefit plans, employer-sponsored retirement plans and IRAs or Roth IRAs. And three-in-10 admit to less than $100,000 in savings, the research found.