American workers plan to keep working past Age 65. If you’re one of them, will your life insurance also continue?
The recent Transamerica Retirement Survey found that a majority of workers plan to work past age 65 (56%) and a majority (54%) plan to continue working after they retire. Just 39% believe they are building a sufficient nest egg, thereby underscoring the need to redefine “retirement readiness” in a way that is better suited to these new realities.
For the past few years, the Transamerica Retirement Survey has seen an emerging trend of workers who plan to work past age 65, including some workers who do not plan to retire. This year’s survey found that these expectations are prevalent to varying degrees among workers of all age ranges, not just older workers.
If you are one of these workers, your need for insurance after 65 to replace lost income in the event of your death becomes very important. You should review your current life insurance policies to determine if they continue past age 65, and if so, for how long and at what cost. Now may be the time to replace your term insurance with permanent insurance, which will stay in-force as long as you need it at a fixed price with no future increases. You could even choose a life insurance policy that includes long-term care benefits in the event you need extended care.
The effects of the Great Recession are reflected in workers’ changing expectations of retirement. Working past age 65 is an important opportunity to help to alleviate a retirement savings shortfall. Life’s unforeseen circumstances, such as a job loss or health issues, can have a devastating impact on the best laid plans. The “what if” scenarios are critical for American workers of all age ranges to include in their long-term preparations.
Nearly one in three workers (29%) expect to financially support family members other than spouses or partners, after they retire, while 13% expect to receive financial support from family in retirement. This makes the need for insurance after age 65 even more important.