Shark Tank’s Kevin O’Leary has made a surprising suggestion that retirement might not be all that it’s cracked up to be and believes those with a job should keep working for as long as they can.
O’Leary, 70, originally retired at the age of 36 but found it to be unfulfilling, so he re-entered the workforce.
‘Working is not just about money. People don’t understand this very often until they stop working. Work defines who you are,’ the Canadian businessman said in an interview to CNBC.
Many Americans aspire to join the FIRE movement (Financial Independence, Retire Early) – with early retirement a solid goal for many.
For most Americans, 67 is considered the age at which many retire with a substantial number retiring at 65 or even before reaching 62.
The coronavirus pandemic only served to hasten retirement for many Americans with lockdowns giving those affected the time to reassess their priorities in life.
‘I don’t know where I’m going after I’m dead, but I’ll be working when I get there, too,’ O’Leary said, noting that he now has no plans to return to retirement.
O’Leary has achieved financial success but still works hard leading the O’Leary Financial Group, O’Leary Fine Wines and appearing on Shark Tank.
‘I retired for three years. I was bored out of my mind. Work provides a place where you’re social with people, it gives you interaction with people all day long in an interesting way. It even helps you live longer and is very, very good for brain health.’
Nicknamed Mr Wonderful on the hit TV show that has been running for 15 seasons, O’Leary says there are many benefits to be had by continuing to work, including financial gains – but he says that money isn’t everything.
‘I don’t need more money,’ O’Leary adds. ‘I just want to do the things in my life that I want to do, and money allows me to do that. I tell every entrepreneur, “Don’t focus on the cash. It’s nothing about greed. It’s all about personal freedom.”‘
Delaying retirement can also increase Social Security payments while keeping working can also give much needed social interaction which can be a boost for one’s mental health.
‘It gives you interaction with people all day long in an interesting way,’ O’Leary said.
Still, despite his insistence on staying in the workforce, stats show most Americans retire between the ages of 61 and 64 with the numbers of those looking to retire younger increasing.
According to researchers with New York Fed, the share of American workers who are planning on working beyond the age of 62 dropped to 45.8 percent in March – the lowest level in ten year, continuing a downward trend that began during the pandemic.
Across younger generations, Millennials and Gen Z are planning on retiring sooner with aspirations to retire at the age of 60 or younger.
Despite aiming to retire early, many of still believe ideal retirement age to be between 68 and 70.
Currently, men tend to call time on their career at around the age of 65 while women bow out at about 63.
The researchers found how the number of years Americans expect to continue working has dropped by 9.5. percent since March 2020 when the pandemic began.
Of course, economic conditions and personal preferences can also play a large role in the timing of retirement.
But researchers found the decline in the number of years Americans wish to work appears to be similar across a number of demographic groups, suggesting there had been a widespread shift in retirement intentions.