- More retirement-age Americans, most infant boomers, are working today than ever previously, but it’s not due to the fact that they require the money.
- The largest increase in individuals working past 65 has been among those in the very best shape for retirement: extremely informed individuals with high incomes, states Lincoln Plews, a research study expert at United Earnings.
- The biggest reason for working longer? They’re healthier than they’ve ever been.
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Not all infant boomers are itching to retire. The greatest share of older Americans in more than 50 years are working well into their 60s, and it’s not because they require the money.
That’s according to newly released information from the Census Bureau and Bureau of Labor Stats (BLS) evaluated by financial investment and financial-planning firm United Income. Since February, about 20% of Americans over age 65– an overall of 10.6 million people– are either working or searching for work, representing a 57-year high.
Today’s over-65 population includes child boomers, specified by Seat Research as ages 55 to 73, and the silent generation, ages 73 and up. The information does not show the specific age breakdown of retirement-age employees.
The full retirement age for Americans born before 1960, which includes countless infant boomers, is 66 and 10 months; that’s the age they’re entitled to full Social Security advantages. Individuals can begin claiming a decreased Social Security advantage at age 62, or postpone their benefit beyond full retirement age to increase their monthly payment by approximately 8% per year, maxing out at age 70.
The significant increase in retirement-age workers might be discussed, in part, by the shift away from work environment pensions and towards defined contribution strategies, like 401( k) s, Lincoln Plews, a research study expert at United Earnings, informed Organisation Insider.
In these types of plans, many of the contributions originate from the employee instead of the company, and Americans are infamously bad at saving cash. It’s reasonable to conclude, then, that some people might need to work longer to make up for an absence of cost savings come retirement age. And yet, Plews stated, the data reveal scant savings isn’t what is driving most old-age workers.
“If you break the information down by education, the biggest increase in working past the age of 65 has been seen among those who remain in the best shape for retirement, extremely educated individuals with high earnings,” Plews told Business Expert. “According to the Federal Reserve’s 2016 Survey of Customer Financial resources, individuals with a college degree still working past age 65 have a median net worth of $706,000. For those in this group with above-average earnings, the typical is simply over $1.4 million.”
Plews found that the share of over-65 employees with a minimum of a college degree increased from 25% in 1985 to 53% in 2019, bumping up the average earnings for retirement-age employees from $48,000 to $78,000, after adjusting for inflation.
Even more, the numbers reveal there’s another, more intangible, factor at play: durability.
“Retirement-age Americans are feeling much healthier than ever. More than three out of 4 Americans aged 65 or older report remaining in good, excellent, or exceptional health, and this percentage has grown gradually over the previous 35 years,” Plews composed in the United Earnings report.
Improved health indicates Americans are feeling more capable than ever, the report found. Seventy-seven percent of over-65 workers stated there are no constraints in the kind of work they can do.