The Surprising Reason Many People Are Retiring Later

Before you go, we thought you'd like these...
Before you go close icon

Deciding when to retire is one of the biggest decisions you'll ever make, both financially and in your quality of life. But a recent survey found that many people are planning to work longer than previous generations -- and the reason why isn't what you probably think.

In the following video, Dan Caplinger, the Motley Fool's director of investment planning, looks at a study from Northwestern Mutual that compared what current retirees actually did versus how workers expect to retire. Dan notes that while the average retiree quit at age 59, most workers now expect to work until age 68. But the surprising thing is that fully 45% of those who expect to work that long are doing so because they want to, with financial considerations playing a secondary role. Dan points out that many people don't have that flexibility, with about 40% saying that they'll have to work to age 75 or later just to make ends meet. Nevertheless, Dan concludes that one goal of retirement planning should be to put yourself in a place where you can decide what to do based on what you want rather than what you need.

How to get even more income during retirement
Social Security plays a key role in your financial security, but it's not the only way to boost your retirement income. In our brand-new free report, our retirement experts give their insight on a simple strategy to take advantage of a little-known IRS rule that can help ensure a more comfortable retirement for you and your family. Click here to get your copy today.

The article The Surprising Reason Many People Are Retiring Later originally appeared on

Dan Caplinger and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

People are Reading