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New findings from the Employee Benefit Research Institute (EBRI) show that 75% of Americans expect to keep working after they retire.
For many, work is not only about covering expenses. It offers a way to stay connected, maintain a sense of purpose and feel more secure about their finances.
For anyone planning to work past retirement age, it helps to have savings tools that add flexibility. A Roth IRA is an option. Because contributions are made with after-tax dollars, withdrawals later in life are generally tax-free. That can complement part-time income, giving retirees more breathing room with cash flow and fewer surprises at tax time.
Why Are Americans Planning To Work in Retirement?
Many people keep working after retirement for reasons that go beyond money. Nearly nine in 10 (89%) say it helps them stay active and connected, and about 88% say they like having a routine and enjoy the work itself.
Money is still part of the picture, though. More than half (54%) keep working to avoid dipping into savings. 40% mention covering daily expenses, 26% want to keep investing and 16% stay on the job for health insurance.
Yet, these intentions don’t always manifest. Many plan to keep working but scale back once Social Security, annuities or a sense of security kicks in.
How Roth IRAs Fit Into the Picture
For Americans counting on partial continued employment, Roth IRAs present a strategic opportunity, blending flexibility, tax efficiency and long-term growth potential.
- Betterment: Betterment simplifies retirement savings by mixing smart tech with tax-savvy benefits. Users invest after-tax dollars and allow the money to grow, then make tax-free withdrawals in retirement. The platform also includes personalized planning tools to help adjust your path as your goals evolve, making it a solid option for long-term investors.
- Fidelity Investments: Fidelity offers a low barrier to entry along with robust resources. There are no account-opening fees or minimums, and you can start investing with just a dollar. The platform features industry-leading support and zero-fee index mutual funds that support long-term compounding at minimal cost. These features make Fidelity a standout for those nearing or transitioning into retirement.
- Charles Schwab: Charles Schwab combines comprehensive investing tools with transparent pricing. Users can access numerous investment choices, including low-cost ETFs, mutual funds, bonds and more. For retirees looking to actively manage their portfolio or diversify holdings, Schwab offers both flexibility and support.
Bottom Line
For the millions of Americans planning to extend their working years, it’s worth remembering that expectations may evolve. While 75% say they intend to stay employed, many ultimately scale back once Social Security or other stable income kicks in. Still, purpose often matters as much as a paycheck.
Staying active, engaged and fulfilled often drives retirees to keep working long after financial necessity fades. At the same time, being tax-smart remains essential.
Since Roth IRAs are built with post-tax contributions, they deliver the rare advantage of tax-free growth and withdrawals, making them a powerful complement to any earned income in retirement.