Why be normal, you might have asked yourself on occasion. Turns out, with retirement at least, thereâ€™s really no such thing.
What you might think of as the â€śnormalâ€ť way of retiring â€” leaving full-time work at a traditional retirement age and never working again â€” isnâ€™t that common after all. Only 37% of U.S. workers retire from a full-time job and stay retired, according to a recent study, focused on people in their mid-50s through age 71, by the Rand Corporation, a nonprofit research organization.
Meanwhile, about 14% of people â€śretireâ€ť to a part-time job. Another 17% quit their full-time job and retire, only to return to the workforce some time later, according to the study, which was based on data on 2,920 people who were surveyed over 14 years by the University of Michiganâ€™s national Health and Retirement Study.
About 26% of people continue to work, either full time or part time, past age 70, the study found.
â€śIn the U.S., nontraditional paths are very common â€” only around a third of people are doing this traditional retirement,â€ť says Peter Hudomiet, an associate economist at the Rand Corporation and co-author of the report.
Rick Kahler, a certified financial planner and founder of Kahler Financial Group in Rapid City, South Dakota, isnâ€™t surprised by the findings.
â€śIâ€™ve had clients quit and go back in two years,â€ť Kahler says. â€śThey get bored. At first itâ€™s usually great because itâ€™s like being on vacation, but for some people thatâ€™s not really sustainable. Ultimately, a person that goes back probably didnâ€™t visualize or think through fully what retirement would be like.â€ť
In other cases, a significant life event â€” such as a spouseâ€™s death â€” or financial difficulties might play a part in people returning to the workforce.
The study also looked at whether our personalities might affect our retirement decisions. A clear link was found between being extroverted and staying in the workforce longer, in a part-time job, even after controlling for other factors.
â€śWe saw that extroverts were more likely to work longer, but only in part-time jobs,â€ť Hudomiet says. (The Health and Retirement Study asks people to self-report their personality type, based on responses to a series of questions.)
Of course, many different factors go into determining how and when we retire. The three strongest predictors of people taking the traditional retirement path, Hudomiet says, are:
Unfortunately, no study is going to forecast your future retirement path for you. But this research shows how various factors can affect retirement timing.
Here are some steps you can take to determine your retirement timeline:
Check up on your savings. While there are lots of nonfinancial questions to consider before you retire, itâ€™s also true â€” obviously â€” that finances are a huge factor in how and when youâ€™ll retire. See if youâ€™re on track with a retirement calculator.
Know what you want. Retirement is about a lot more than just money. Before you retire, figure out your goals and plans. â€śActually write out what you will be doing,â€ť Kahler says. â€śWhat would a normal day, a normal week, a normal month look like? This forces someone to actually put pen to paper as to how a day looks.â€ť Read more about retirement planning at any age.
Talk with your spouse. It sounds obvious, perhaps, that youâ€™d talk about retirement with your partner. But Kahler says one of the biggest hurdles for couples is when one spouse is suddenly home all the time. â€śPeople make assumptions without gathering the facts,â€ť he says. â€śWhat is the other person thinking? Do they even think the spouse will be home all day? Does the spouse assume something else? Does the spouse even know theyâ€™re serious about retiring?â€ť Talk together about how life is going to look when one or both of you is retired.
Consider backup plans. You might plan to work full time until age 70, but what if you change your mind down the road, or your health deteriorates to the extent that you canâ€™t work anymore? One idea is to trim expenses now so you can hike your savings rate and improve your retirement outlook. Other potential backup plans include moving to a less-expensive locale in retirement, taking out a reverse mortgage, or figuring out other ways to cut costs or boost income, such as taking in a roommate.
Prepare for major change. Retirement is â€śa big deal,â€ť Kahler says. â€śSome people are really ready and handle it fine, but most people find the adjustment a little more daunting than they imagined,â€ť he says. â€śWe tell people: Start preparing two or three years before.â€ť
This article was written by NerdWallet and was originally published by Forbes.