Why Can’t More Seniors Retire Comfortably?

Imagine, you’ve been dreaming of that day when you finally trade your work boots for slippers, only to realize that financial hurdles make retirement seem like a distant dream. Unfortunately, this isn’t a hypothetical situation for a growing number of mature workers.

Recent studies reveal a worrying trend – fewer people can cover all retirement expenses, with the percentage falling from 83% to 78% in just one year. Additionally, about 17% of retirees contemplate returning to work to bolster their finances.

This trend has made corporate planners rethink their expectations of younger workers entering vacated senior roles.

A lot had changed since 2020, when companies were eager to keep older workers amid labor shortages. But in 2023, businesses hope their higher-earning employees will transition into retirement, cutting costs in the process.

This situation poses potential hurdles for younger workers but also offers opportunities for senior employees. Older workers could gain bargaining power as age-based discrimination is illegal, leading to buy-out offers or specially designed retirement-track roles.

In short, financial worries are causing seniors to extend their working years. This trend is unsettling for corporate executives eager to promote younger talent.

Were you looking for guidance in retirement planning? Connect with a financial advisor. Use SmartAsset’s free tool to find local advisors.

A Home Equity Conversion Mortgage (HECM) could be a practical solution to achieve financial independence in retirement. Tailored for seniors, HECM loans convert home equity into flexible funds while retaining homeownership. It’s an intelligent strategy worth exploring in your retirement plan.

Are you interested in learning more about HECM loans? Contact Shelby at The Good Buy Mortgage Company for a free consultation and start your journey toward a financially secure retirement today!