Boomers working to stay employed during golden years

Most Baby Boomers intend to work after retirement age or never retire at all. But some are making backup plans just in case they're forced to retire before they're ready because of health problems, job loss or other unexpected reasons, a new survey shows.

About 65% of Boomers (those born between 1946 and 1964) plan to work after age 65 or don't plan to retire. The top reasons for working in their golden years: income and health benefits.

Lots of Boomers are being proactive to stay employed: 26% have a backup plan for retirement income in case they are forced into full retirement sooner than they expected; 65% say they're staying healthy to continue working; 41% are keeping their job skills current; 16% are networking and meeting new people; 14% are scoping out the job market for possible opportunities.

"With so many Baby Boomers planning to work longer and retire later, they are taking steps to stay marketable," says Catherine Collinson, president of the non-profit Transamerica Center for Retirement Studies, which commissioned the national survey of 4,143 full-time and part-time workers conducted this winter by Harris Poll.

Although many Baby Boomers want to shift from full time to part time as they transition to retirement, only 21% say their employers have programs that would accommodate them.

"Most Baby Boomers are envisioning a transition into retirement which involves reducing hours to afford them more time to enjoy life or involves encore careers that are more personally satisfying or less demanding," she says. "The vast majority say their employers do not have policies in place to accommodate this type of transition, so it's likely they'll have to change employers or explore something entrepreneurial."

Retirement plans and preparations vary by age groups:

• Baby Boomers have a median household retirement savings of $127,000 up from $75,000 in 2007. However, Boomers don't think that's enough to live comfortably in retirement. About 36% plan to rely on Social Security as their primary form of income when they retire, up from 26% in 2007.

• Generation X (those born between 1965 and 1978) started saving for retirement at age 27. And 84% of those offered a 401(k) or similar plan by their employer are participating in it, saving about 7% of their annual salaries. They think they'll need $1 million in retirement savings. Right now, they have a median household retirement savings of $70,000. "They have some catching up to do, but they still have time to do it, if they make a concerted effort right now," Collinson says.

Roughly two out of three of them expect their primary source of income to be self-funded accounts, such as 401(k)s, 403(b)s, IRAs or other outside savings, she says.

• Millennials (those born after 1978) started saving for retirement at age 22. And 71% of those offered a 401(k) or similar plans are participating, tucking away 8% of their annual salaries. They have a median household retirement savings of $32,000. "These are an emerging generation of super savers," Collinson says.

They have "lofty aspirations" with 60% planning to retire before or at age 65, she says. Millennials recognize that their retirement will be different from their parents', and they don't expect to their primary income to be from defined benefit plans (traditional pensions) or Social Security, she says.