When I first caught this survey by MassMutual that found that 20% of Americans aren't ever planning to retire, my first reaction was "Whoa, that's bleak." And when you look at some of the other stats that survey reveals, it's easy to see why the idea of retirement might be nothing more than a pipe dream for some.
A whopping 49% of respondents said they aren't saving enough to retire at their ideal age. And given that many Americans are continuing to grapple with inflation, high housing costs, and now (once again) student loan payments, it's easy enough to see how 401(k) or IRA contributions might easily fall by the wayside.
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Reaching the decision to not retire due to a lack of funds is less than ideal. In that situation, you're not making a choice so much as accepting an unwanted reality.
But when I think about it from a different angle, the idea of never retiring actually sounds kind of appealing. Here's why.
Taking the pressure off
Many people feel compelled to reach a specific savings goal before allowing themselves to retire. And sometimes, that goal is pretty arbitrary.
I have a number of friends who have said that they won't retire until they've saved $1 million. And my answer is: Why? Why that number? Does it just sound like it'll be enough money, or have you actually tried to map out a retirement budget of any kind?
Clearly, I'm not a fan of landing on a random long-term savings target and committing to it. I'm also not a fan of spending your entire career under pressure to build up a nest egg of a certain size even if you have run the numbers, because that's just a lot of stress no one deserves.
So when you think about it, if you tell yourself you just won't ever retire, it takes some of the pressure off. Sure, it's still wise to continue funding a 401(k) or IRA -- for the long-term financial security as well as the near-term tax benefits. But imagine if you were to make plans to continue working in some capacity for the rest of your life. Wouldn't that help you feel less worried about your senior years?
And to be clear, you can continue to earn an income later in life without a desk job. The gig economy totally allows for that. So if you set yourself on a path to be able to engage in different (maybe even offbeat) types of jobs in your 60s, 70s, and beyond, you can continue to work in a new capacity without being cash-strapped or miserable. It's really a win-win.
Addressing the boredom factor, too
I have a number of friends whose parents have retired over the past five years. And want to know what their days are like? Often, these seniors are bored.
Sure, there's a twice-a-year vacation to look forward to that breaks up the monotony. And all of these people have hobbies and activities that anchor their days to some degree.
But there's also a lot of straight-up boredom thrown into the mix. And part of that boils down to not having enough things to do with their time.
That's why I'm not so against the concept of never retiring. Continuing to work in some capacity on an indefinite basis could help alleviate boredom and help you feel more satisfied with life when you're older. That's a great thing even if you don't need the money.
Now, realistically, most people's bodies eventually slow down to the point where working is no longer possible. My grandmother retired in her 90s because her body physically couldn't handle a job, and trust me when I say that she struggled with that decision immensely.
So to be fair, it might not be feasible to truly never retire. But it could be a good idea to plan to continue working as long as you're able to, whatever that ends up meaning.
