12 Reasons Which May Influences Your Retirement Decision

Workers Health Condition
Health condition is some other influence on retirement decision, which clearly keep workers work or retired in some circumstances. Aging workers are prone to ailments like arthritis make older workers less employable long before they qualify for private or public disability benefits. It has often been thought that health and disability problems at older workers primarily affect men in blue-collar jobs. Some pink-collar jobs held by women, such as waitress, practical nursing, and childcare, are also difficult for older people with even minor health problems.

Spouse’s Age and Health Condition
Women continued to be perceived as caregivers, the effect of the husband’s health on the wife’s retirement has also been looked into. Results on this issue have been mixed. This kind of decision is likely more complex than it might first appear. There are 2 possibilities if a husband becomes disabled or ill:
1. Wife might quit work to care for her husband
2. Wife might continue to work and hire someone else to help with his care.

The earnings potential of the healthy spouse, along with the ages of the spouses when the health problem occurs, would be crucial considerations. An extra consideration would be the source of the family’s health insurance—and whether the continued employment of the working spouse is necessary for continued insurance coverage. It is likely that she continue working for the sake of health insurance coverage which she wouldn’t get when retired. Women in their fifties who had a parent needing help with activities of daily living were more likely than others to leave the labor force participation.

Maintain Quality of Life
Over 60 % of workers intend to keep on working past normal retirement age, with well over half citing ‘‘quality of life’’ rather than economic necessity as their reason. It is unlikely that labor force participation will increase as dramatically as these responses imply. Health, inability to find work, or other personal reasons will probably intervene in many cases. Workers citing quality-of-life reasons for delayed retirement will probably not continue to work unless they find a job they will enjoy.

Wealth Improvement
An increase in Americans’ wealth is often cited as an important factor affecting the trend toward earlier retirement during the post— World War II period. Poverty among the elderly, though still high for some groups of women (and men), decreased markedly between 1959 and 2000. In 1959 the overall poverty rate for the elderly population was 35 percent, considerably higher than the rate for the whole population. In 1999 the poverty rate among the elderly was 9.7 percent, compared with an overall poverty rate of 13.3 percent. Most of the improvement in elderly poverty came in the first fifteen years of this period. By 1979, poverty among the older population had fallen to about 15 percent (17 percent for women). Since then, the decline has been much slower. Much of the improvement can be attributed to the increase in coverage and benefits made available through improvements in Social Security benefits.

Race Influences
Race is arguably the most important influences on retirement decision by vary considerably. Older Hispanic and African-American men are more likely to be out of the labor force participation compare to white men. Older African-American women have rates of labor force participation like to white women, whereas Hispanic women are more likely to be unemployed or out of the labor market than are white or African-American women. Both African-American and Hispanic men and women are more likely to be influenced by push factors such as involuntary loss of a job or poor health. African-American and Hispanic workers are also more likely to be concentrated in low-wage occupations that are physically demanding and/or lack pension coverage.

Labor Shortage and the Delayed Retirement
Americans are healthier and living longer, hence the age of retirement may rise in the future. The change in the ratio of the population working in manufacturing compare to service jobs makes working with minor health problems feasible for more workers. The growth of defined contribution pension plans that advantage employees for working longer is also an crucial trend. The extension of the age of eligibility for full Social Security benefits to 67, as well as the elimination of retirement incentives (including changes in the earnings test and the delayed retirement credit), may be anticipated to increase the average age of retirement, but the effects are expected to be small. The state of the labor market is likely to have the most important impact on retirement. It is widely anticipated that labor shortages will develop as the large baby-boom generation reaches retirement age. In that case, some companies may offer retirement incentives to older workers for delayed retirement. Others may create attractive part-time positions for which they will recruit older adults. This scenario might not materialize, however, either due to a prolonged recession or to more rapid immigration due to increased recruitment of foreign workers by companies.

Employer’s Economy Condition
Employer’s economy condition has been shown to have an affect on men’s retirement decision, and it probably influences women as well. Much of the research on retirement decision-making was undertaken which saw periods of relatively high unemployment. Older workers who lose their jobs tend to remain unemployed longer than more youthful workers, and they are also much more likely than others their age to retire. Employers who are retrench their workforces often offer special retirement incentives to their older workers. In periods of rapid growth, new jobs are much easier to find for those who lose their jobs. Employers may actively recruit older workers who would not previously have been considered.