Baby Boomers are Retiring Later on

March 2, 2015 9:00 am

A current study by the Federal Reserve showed that even more individuals 55+ years are now working longer. This is a reversal of the trend of a couple of decades earlier. It appears the Baby Boomers are not retiring as early as expected. There are a few factors:

1. They can’t afford to retire. Between higher living expenses as well as salaries not increasing to stay up to date with inflation, there are fewer individuals able to conserve for retired life.

2. In the U.S. the size of the national debt might suggest a loss of social security benefits sometime in the future. The multitude of individuals qualified for payments is increasing too. Federal government benefits may not be a reliable source of revenue.

3. With such a multitude of retiring workers as well as less more youthful workers to fill the tasks, it leaves job vacancies for the older workers to take. What business would not really want knowledgeable, already trained workers in every industry?

Josh Zumbrun writing for “The Wall Street Journal” has actually mentioned that Americans are working much longer yet at some point they do get around to retired life. We haven’t gone back to the Dark Ages when individuals functioned till they collapsed and died.

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.

The dark knight retires

It must be mentioned that the trend to work longer is true for both females and also guys. What will the future hold for those reaching their 60’s? Will they retire at 65 as their relatives did? It’s unlikely as individuals are also living much longer now.

Retired life for 30 years is bound to be pricey and also for some individuals, rather boring. I assume there will certainly be even more individuals changing occupations in mid-life, much as the retiring military do now. The local colleges already give great training and also refresher courses golf courses. We see an increase in on-line training courses too. What do you assume is ahead for retiring workers and what do you intend to do?

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