No matter how rich you are, work beckons in retirement

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Tuesday April 3, 1:15 pm ET
By Thomas Kostigen


SANTA MONICA, Calif. (MarketWatch) -- No matter how rich, people aren't looking to retire anytime soon. Even people in their 70s are returning to the work force. This may pose an entirely new model for retirement planning: No retirement planning at all.

Forty-eight percent of millionaires say they are retired but 29% say they have returned to the work force in some capacity, according to research from Northern Trust, a multifaceted financial-services company in Chicago. Further, that research shows 17% of millionaires over 70 have remained in the work force and of those 7% never retire.

\"The report mirrors what we've observed as we advise clients who are soon to be retired or have retired,\" said Gregg Yaeger, head of the Financial Consulting Group at Northern Trust. \"Retired business owners and executives tell us that they want to give back the knowledge they've gained during their careers, and many continue to explore and start or invest in new ventures.\"

Age isn't playing into the equation either. As more wealth is accumulated by younger generations, they too are remaining active. Take the Internet entrepreneurs who cashed out during the boom years. Many of them are continuing to work also. In a Los Angeles Times report last week, several of these entrepreneurs -- under 40 years of age -- said they rejoined the work force because, in short, they got bored.

The days of golfing and shuffleboarding the hours away until the early-bird special is offered at dinnertime are over. People want to engage and remain active. And these are especially high priorities for millionaires too.

Of course it makes sense. Successful individuals usually achieved their success through a combination of knowledge and vigor.

Indeed, George Kinder, a financial adviser and author of the \"Seven Stages of Money Maturity,\" says some of the keys to financial success are knowledge, understanding, vigor and vision. Vigor stands out because it encompasses the concepts of drive and zeal, two attributes that seem to be extending to later years in life.

But working through the Golden Years isn't all about self-fulfillment; people are fulfilling needs too.

Increasingly on people's minds, according to Northern Trust, are health-care costs for themselves and their families. And this for almost half of all millionaires in the Wealth in America 2007 report.

Again, the finding isn't age-specific: 42% of GenX millionaires (ages 27-41) are also concerned about such issues as rising health-care costs, personal and family health. This compares with 47% of baby boomers.

About one-third of GenXers are already concerned about the viability of Social Security and Medicare.

No resting on their laurels
So while it's safe to say that millionaires have it financially easier than those with less money, they aren't taking it easy. Nor are they thinking they are going to have an easier time dealing with life issues in later life.

\"Most millionaire households, while generally well-positioned for a comfortable retirement, nevertheless have concerns about issues or events that might harm their finances at retirement. Health-related issues in the form of rising health-care costs and personal and family health are top retirement concerns of wealthy households,\" Yaeger says.

Northern Trust studied more than 1,000 households across the country with $1 million or more in investable assets. The company's Wealth in America report notes that aside from financial goals, millionaires in retirement first and foremost seek an active lifestyle.

Sixty-four percent of millionaires surveyed said it's important to pursue personal interests and hobbies in retirement, while 61% cite traveling in the U.S. and abroad as a goal in retirement. Enjoying an active lifestyle is important to 53% of millionaires, while a sizeable number (30%) plan to volunteer in their communities and find personal enrichment through continuing education.

I'm assuming this is why health care is of such importance to people -- they want to remain healthy to remain active. And I am also going to make the leap and say this is why the stock markets will remain healthy too. The vigorous lifestyle mind set goes part and parcel with a growth mentality rather than a more passive income-oriented personality.

If what I assume is true, then there isn't going to be much of an economic slowdown anytime soon as the baby boom generation continues to retire, mostly because they aren't really looking to retire at all.

FROM： http://biz.yahoo.com/cbsm/070403 ... 1&.pf=insurance