This is partially because many older Americans are choosing to re-enter the workforce after they have retired, according to a 2003 survey by the American Association of Retired Persons (AARP).

The reasons cited range from longer life expectancies and the economic necessity of creating income at an older age to the desire for increased social interaction. However, the number one reason cited by the AARP survey was to remain mentally and physically active.

As more and more seniors are available for work, more and more employers are seeing the benefit in hiring them. For example, companies such as Home Depot, Walgreen’s, Borders, and MetLife, to name a few, have joined forces with AARP to actively recruit older employees because of the numerous advantages they bring to the marketplace.

According to an August 2003 survey by the Society for Human Resources Management, employers are hiring older workers because they have more life experience and tend to have more patience, flexible work schedules, stronger work ethic and company loyalty then some of their younger counterparts.

As more people work later in life, they need to adjust their retirement and financial plans accordingly. So if you are working and nearing retirement, whether you are in your 50s or 80s, here are some financial tips to help you along the way.

Boost Your Savings

According to the 2004 Retirement Confidence Survey (RCS) released by the Employee Benefit Research Institute, American Savings Educational Council, and Mathew Greenwald and Associates, only 58 percent of American workers are currently saving for retirement. Of those that are saving, 58 percent say the amount they have saved is low.

The RCS survey also found that 45 percent of workers reported household assets (excluding the value of their home) of less than $25,000. Financial experts estimate that most of us will need to save enough to be able to replace about 60-80 percent of our annual pre-retirement income to live on each year after we retire.

If you are behind, you have options. First, kick your 401(k) contributions into high gear. If you are over 50 you can now contribute a total of $18,000 in 2005 and this will increase to $20,000 in 2006. Secondly, if you are over 50 and have an IRA, you can save $4,500 in 2005 and $5,000 in 2006.

Cut Spending

If you are set on retiring in the near future and are behind in your savings, now is an important time to create a budget and to consider making some sacrifices. For example, instead of taking that two-week vacation overseas, consider staying a bit closer to home.

Take A Little Risk

Due to longer life expectancies, most retirees will need to live off their savings and social security benefits for more than 20 years. So if you are 10 years away from retirement, now might not be the best time to get overly conservative with your investments.

Get Help

To figure out the right asset allocation for your time-horizon, risk-tolerance and goals, consider meeting with a professional financial advisor. A personal advisor can help you develop a comprehensive financial plan, which can include savings, budget and asset allocation strategies.

This information is provided for informational purposes only. The information is intended to be generic in nature and should not be applied or relied upon in any particular situation without the advice of your tax, legal and/or your financial advisor. The views expressed may not be suitable for every situation.

Ameriprise Financial Services, Inc. Member NASD. American Express Company is separate from Ameriprise Financial Services, Inc. and is not a broker-dealer.