Of course, these statistics do not factor in the number of individuals dissuaded from applying for benefits because they realized the earnings limit would consume most or all of their earned benefits. The impact of the earnings limitation may explain why, despite improved health among seniors, only 16.5 percent of men age 65 and over are in the workforce today compared to 47 percent 50 years ago. Social Security benefits are often described as being one leg of a three-legged stool. The other legs are made up of private savings and pensions. It is important to note that fewer than half of all seniors have their Social Security benefits supplemented by a pension.
Savings can be equally elusive.
Even those seniors who have accumulated respectable nest eggs, can see them quickly eroded by the high costs of nursing home care, exorbitant prescription drug costs, or other major medical expenses not covered by Medicare. And, as life spans increase, more and more retirees find themselves responsible for the care of an aged parent. Maintaining independence in retirement is important to today's seniors. Not all seniors work because they need the money. Many receive satisfaction from continuing to be productive and creative.