Why they prefer to work beyond retirement age

Most people in their younger years look forward to retirement after a lifetime of hard work. Yet as people get close to retirement, they begin to reconsider – and think of working longer.
While many responses to questions in the 2010 AXA Retirement Scope survey revealed interesting variations from one country to the next, by and large, the trend of people wanting to work longer was fairly consistent across the region.
Most said their strongest perception of retirement was that it represented a time to spend more time with friends and family, to take better care of one’s self and even to pursue interests they did not have time for when they were working. But the relative value of these does vary.
For example, in Indonesia, as compared with the other Asian countries, rather than thinking about taking care of themselves, Indonesians prefer to spend their retirement with their families. More than 95% of respondents ranked this as the top vision for their retired years.
This is typical of Indonesian culture, where family bonds are of greater importance, as was also the case in countries such as Thailand, where it was also 95%, and China, where 93% ranked it at the top.
Yet, with all the reasons to look forward to retirement, the same survey also found that as people approach actual retirement, they begin to think they should work longer. By and large across all the countries surveyed, young people cited the ideal retirement age to be in the low 50s (with only one or two years of differences from one country to the next). But mid-life workers placed the ideal retirement age in the mid-50s, while those close to retirement placed it either in the high-50s or low-60s.
What accounts for this new trend? Indications of what shifts this perception are seen in other parts of the same survey. For example, many may see the need to catch up on financial planning they may not have carried out in their earlier years.
Indeed, across Asia there is a trend for people to prepare for retirement late in life, often giving them insufficient time to do it adequately.
Especially in this era of economic uncertainty, remaining in the workforce or continuing a professional career can help safeguard your lifestyle while also reinforcing your finances – perhaps even recouping value of assets that may have declined since 2008.
Another key factor cited was the loss of social status when people stop working. For example, 57% of Chinese retirees felt they had lost social recognition in some way, while 66% of retired Indians noted this, as did 54% of Singaporeans and 46% of retirees across Southeast Asia in general.
Another key consideration, of course, is also financial. Many retirees reported that they felt they needed to continue working to secure their income – although the percentage of people reporting this sentiment also varied, most likely in line with the level of government support for retirees – or the perception of how sufficient those benefits are.
For example, 58% of respondents in China said they felt they needed to continue working for financial reasons, while in Australia only 31% did. India and Japan ranked highest, with 80% and 70% respectively. No huge surprise in Japan’s case as the challenge of its aging population and shrinking numbers of working people to support state pensions has been known for decades.
In Southeast Asia, 69% felt they needed to continue to work for financial reasons.
Of course, continuing to work longer in life does offer benefits, and can present a valuable opportunity to more effectively plan retirement and ensure you continue to enjoy the lifestyle you have now well into the future.
If you started retirement planning late in life and did not set aside sufficient income to support yourself later in life, there are still investment opportunities. And, the right financial approach can also better position you so that when you do choose to retire, it is on your terms and when you want.