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Young Retirees, Older Workers
By Catherine R. May, Executive Director
A recent publication from the National Academy on an Aging Society told that almost one quarter of the population aged 51 to 59 does not work. Among these non-workers, more than half- about fifty four percent- are retired.
One quarter of people age 60 and older is in the work force, although labor force participation rates for men and women drop substantially at age 60.
Neither of these facts however, say the experts at the National Academy, can be used to project patterns of employment into the future. The only constant in this picture, as in so many others, is change.
Currently, people continue to retire earlier than they did at the turn of the last century. In 1910, the average man retired at age 74, today’s average male worker retires at age 63. For women, the average age thirty years ago was age 65, but today is just under 63.
Obviously there are many factors that influence both when a person retires and whether she or he chooses to stay in the workplace. This year’s change in federal laws around Social Security payments to those still employed at 65 and older largely removes the penalty that reduced one’s Social Security earnings if one earned too much .Now those aged 65 or older can continue full time work without suffering any reduction in Social Security payments. This will likely encourage older workers to stay in the work place, and not necessarily cut back their hours worked, as many did in the past. The scheduled increase in the age at which full Social Security benefits will be available will also encourage older workers to stay in the work place.
Some retirees are forced into retirement by the less that golden handshake that employers utilize to clean out older more highly paid workers, others retire because of ill health.
Certain characteristics are prevalent in groups of early retirees, as well as groups of "late" retirees. Retirees who leave the workplace at age 51 through 59 are more likely to be: female, less educated, white, married, in poorer health, and less well off financially, while workers age 60 and older are more likely to be:
male, more educated, white, married, in better health , and well-off financially
Older workers as a group have less physically demanding jobs, and are most likely to be in service-oriented jobs. About one third hold professional and managerial level jobs that may utilize the skills developed over the course of their careers. Also ,one third of workers seventy and older are self- employed.
This data indicates no clear trends, some are retiring early because of choice or being forced out, others are staying in the workplace well into their seventies.
Demographic data now says the average American female will live to eighty, the average male until 74. The fast growing number of older persons today are making their own choices about whether to continue to work or whether to retire. At this time of full employment and lack of qualified workers for so many jobs, the more skilled older workers who stay in the labor force, the stronger our economy will be. In the world of work, older Americans are a natural and a national resource.