A recent study by the Federal Reserve revealed that more individuals 55+ years are now working longer. This is a turnaround of the style of a couple of decades earlier. It seems the Baby Boomers are not retiring as early. There are a few reasons:
1. They can not afford to retire. In between higher living expenses yet incomes not increasing to stay up to date with the rising cost of living, there are fewer individuals able to save enough money for retirement.
2. In the U.S. the size of the public debt could suggest a loss of social security benefits at some time in the future. The huge number of individuals qualified for payments is increasing also. Federal government benefits might not be a trusted source of income.
3. With such a multitude of retiring employees but fewer young employees to fill the work, it leaves job vacancies for the older employees to take. What business would not desire seasoned, already educated employees in every industry?
Josh Zumbrun writing for The Wall Street Journal has explained that Americans are working longer but eventually they do get around to retirement. We haven’t returned to the Dark Ages when individuals functioned till they broke down and passed away.
The change in labor force participation that has happened at each age has been biggest for workers in their mid-60s. From age 62 to 65, women are about 10-12 percentage points more likely to work today than in 2000, and men about 6-8 percentage points more likely. These are precisely the years when decisions to continue to work help optimize the size of Social Security payments and the years where some workers may choose to continue working until becoming eligible for Medicare.
Americans’ retirements have been delayed, but not abandoned entirely. Having the financial means to retire is a big part of the story. But the vast majority are still getting to their golden years eventually.
It needs to be explained that the style to work longer is true for both men as well as females. Just what will the future hold for those reaching their 60’s? Will they retire at 65 as their family members did? It’s unlikely as individuals are also living longer now.
Retired life for 30 years is bound to be expensive as well as for some individuals, somewhat boring. I think there will certainly be more individuals altering occupations in mid-life, much as the retiring armed forces do now. The community colleges already offer good training as well as correspondence courses. We see an increase in online courses also. Just what do you believe is ahead for retiring employees and exactly what do you intend to do?