According to the study, 59% of baby boomers in the workforce expect to continue working during retirement. Meanwhile, around 60% of people in Generation X and 49% of millennials share the same sentiment. Overall, more than half of all American workers (54%) say their retirement years will involve some type of job.
Voya Financial considers baby boomers to be those born between 1946 and 1964 and Gen Xers to be those born between 1965 and 1980. Millennials are people born between 1981 and 1996.
“The definition of retirement is evolving and will keep evolving,” Charlie Nelson, CEO of retirement and employee benefits for Voya Financial, told CNBC. “It’s not going to be about working until a certain age and then switching to no work.”
The study was based on a survey of around 1,000 people that was conducted between March and July.
More than half of respondents (56%) who said they wanted to continue working during retirement said it was for their mental well-being, while 40% said they wanted to be prepared for unexpected costs or potential market volatility.
In addition, 55% of all respondents revealed they would rather save more money for retirement than be entirely debt-free.
“There may be financial reasons they want to keep working, or it might be because they want to stay mentally alert,” Nelson explained.
Voya also said that nearly 70% of people participating in the company’s retirement plans have increased their contributions to those plans during the COVID-19 pandemic.
“What COVID is reminding all of us, and we’re seeing in the behavior of many Americans, is the importance of saving, having a plan and sticking to your plan,” Nelson explained.