Einstein never really did it. Picasso didn't either. Michael Jordan has done it several times, but it never sticks. And as it turns out, a large percentage of Americans don't ever intend to do it.
What is it that seems so unappealing? Retirement. While most Americans intend to retire, a surprising number mean to spend their "golden years" working.
A January 2002 Gallup/UBS Index of Investor Optimism retirement study* asked American investors about their retirement plans. Forty-one percent expect to "Continue to work in [their] same job or profession for as long as [they] are physically able." The findings suggest good news for employers, the economy and dwindling Social Security funds.
Older People and Women Likely to Work Past Retirement
The younger one is, the more attractive retirement seems. Forty-six percent of investors over age 50 want to work until they physically cannot. Slightly fewer, 41%, of those between ages 35 and 49 intend to keep working, and only 31% of those between age 18 and 34 want to stay employed indefinitely. This may reflect, to some extent, the life cycle of financial sensibility. Retirement depends on retirement savings. The youngest have reason to hope that they will have some, the oldest know if they don't.
Perhaps because they tend to have lesser lifetime earnings, women are more likely than men to say they will work to the limits of their physical capacity. Forty-five percent of women investors report that they intend to delay retirement as long as possible. Thirty-nine percent of their male counterparts say the same thing.
The Role of Education, Income and Financial Security
The intention to keep working corresponds predictably with financial security. People with the least money saved are the most likely to work until they drop. Forty-four percent of investors with less than $100,000 in retirement savings do not intend to retire. Of those with $100,000 to $200,000 to fall back on, 37% say they plan to work past retirement, as do 35% of those with $200,000 or more saved.
The more advanced one's education, the more money one will probably make and save. Not surprisingly, college graduates are more likely to plan retirement than high school graduates. However, the gap between the two groups is smaller than one might expect. Investors with a high school diploma or less are most likely to intend to work as long as possible -- 49% say they will do so. Forty-five percent of those with some college agree, while 34% of college graduates intend to keep working past retirement. However, postgraduates do not follow this trend; 42% of those with post-graduate degrees plan to keep working past retirement age.
When the findings are categorized by income, the results are just as counterintuitive. One would expect those with the most income to be the most likely to retire before physical incapacitation. In fact, that doesn't appear to be the case. The least wealthy (those earning less than $40,000) and the most wealthy (those earning $100,000 or more) are the least likely to expect to retire (48% and 44%, respectively). Those in the middle, $40,000-$60, 000 (38%) and $60,000-$100,000 (35%) are most likely to hang it up at age 65.
Those with low levels of education and income may plan to work past retirement age out of necessity. But what about those with fat paychecks and several diplomas? Long-term Gallup research into employee engagement may explain their motivation to continue working. Gallup's research has found that actively engaged employees -- those who love their work -- are the most retainable, have better safety records, and are more productive and profitable. People who actively, passionately love their jobs don't want to leave, even if they reach retirement age and have enough savings to live comfortably. For these folks, a 65th birthday is just a good reason for cake.
*These results are based on telephone interviews with a randomly selected national sample of 1,001 U.S. investors not retired, aged 18 and older, conducted Jan. 4-13, 2002. For results based on this sample, one can say with 95% confidence that the maximum error attributable to sampling and other random effects is ±3%.
