Monterey, CA Many Seniors Are Returning To The Workforce

A group of people giving thumbs up to the camera.


Many senior citizens are returning to the workforce due to spiraling inflation and the high cost of living on the Monterey Peninsula.  However, experts say that there are other ancillary benefits if you enjoy the work.  “Working longer is going to be a really powerful lever to increase the money available in retirement, because you’re not drawing down your savings and it gives you more of an opportunity to save, Anqui Chen of the Boston College Center for Retirement Research, told AARP Bulletin (June 2022 Issue, page 28).  The University of Michigan’s Health and Retirement Study (HRS) which has been tracking people over 50 years old for decades, found it “pretty strongly shows that continuing to work has benefits for cognitions,†Amanda Sonnega, associate research scientist at the University of Michigan’s Institute for Social Research, told AARP Bulletin.  A University of Maryland Study of more than 12,000 retirees found

Monterey, CA Many Retirees Not Prepared For A Financial Shock

A jar of coins with the word retirement written on it.


A new study which was published by the Society of Actuaries Research Institute’s Aging and Retirement Strategic Research Program found that many retirees and pre-retirees aren’t prepared for a financial shock, and the likelihood of that happening is increasing.  Many economists are saying that the odds are increasing that we will soon enter a recession, and Russia’s attack on Ukraine is likely to wreak havoc on the stock market.  According to the study, about half of pre-retirees report that they already experienced a financial shock, along with 4 in 10 retirees.  These shocks have reduced the assets of pre-retirees by 25% or more and their spending by 10% or more.  Experts urge retirees to build a reserve fund.  Half of pre-retirees could only afford to spend $10K or less on an emergency while retirees reported they could afford no more than $25K.  There are plenty of great financial advisors on the Monterey Peninsula and you should consult with one yearly.

https://www.usatoday.com/story/money/personalfinance/retirement/2022/03/25/retirement-prepare-sudden-financial-hardship/7157673001/