Published: December 06, 2006 11:47 am         

Tired of Retirement:study finds retirees returning to work

Can't wait to escape the grind of your job and retire? Not everyone feels that way. A new study shows many potential retirees want to keep working longer.

The study finds that about 7 million previously retired Americans - or one-third of all American retirees - have returned to work for pay after an average sabbatical of one-and-a-half years. The research is based on "The Working Retired," a Putnam Investments-sponsored national survey of 1,726 retirees who returned to work.

About two-thirds of the respondents said they returned to work because they "wanted to," while the remaining one-third went back out of economic necessity.

"Our study shows retirement in the United States has already moved far beyond ending work at age 65, gold watches, jogging suits and early-bird specials," said William T. Connolly, head of retail management at Putnam Investments. "For many, retirement is just a pause before resuming a career."

The study found a large group of these "wanted to" workers re-entered the workforce looking for non-financial rewards. Close to half thought working might make them healthier, more energetic, and keep them in top mental form.

A major reason these retirees were able to return to work by choice was because they saved enough money, which is hard to do this day in age, that’s for sure. The survey found that the working retired who had a financial advisor had average assets of $621,000, more than 50 percent higher than the total group's average assets. Putnam research also found that retirees who work with advisors are 30 percent more satisfied with retirement than those without one.

"It's important, no matter how old you are, to have a retirement plan and begin saving as soon as possible," said Connolly. "Financial advisors can offer the best advice for a plan that makes the most with your money. After all, working through your seventies to pay bills is not the portrait of retirement most Americans envision."