A Pew Research Center report finds that older Americans are staying in the workforce, defying traditional retirement norms, with approximately 11 million Americans aged 65 and older actively working, contributing to 7% of all wages and salaries paid by U.S. employers, compared to just 2% in 1987.
Who are Baby Boomers?
Baby boomers, born between 1946 and 1964, will be aged 59-77 in 2023. This generation has a notable impact on the economy and was considered the largest generational group in U.S. history until the millennial generation slightly surpassed them.
Traditionally, 65 has been considered the retirement age for many Americans. However, as the tail end of the baby boomer generation celebrates another birthday, some are pondering whether it's time to swap emails and meetings for relaxation and morning tee times. A notable trend is the increasing number of Americans working into their 60s and 70s, driven by longer life spans, financial necessities, and incentives to retire later.
Why Do Boomers Remain in the Workforce?
Retirement in 2023 will not be the same for baby boomers as it was for their parents, according to John Anderson, a business and life coach and author of "Replace Retirement." He emphasizes that the reasons behind boomers working later into retirement are diverse. The Bureau of Labor Statistics found that the current shift in the workforce is not just a trend, indicating that workers aged 65 and beyond are expected to contribute to more than half of the overall labor growth from 2021 to 2031.
Financial Stability
Many baby boomers remain in the workforce to bolster their financial stability during retirement. Extended life expectancy and potential healthcare costs contribute to the need for a more secure financial foundation.
Passion and Purpose
Boomers often find a sense of purpose and fulfillment in their work. Continuing to contribute to their professions allows them to tap into their skills and experience, providing a meaningful outlet for their passions.
Extended Life Expectancy
With advancements in healthcare and healthier lifestyles, baby boomers are living longer. This extended lifespan encourages some to view their later years as an opportunity for continued engagement and contribution to the workforce.
Changing Work Culture Adaptation
As work cultures evolve to appreciate the value of experience and diversity, many boomers find themselves in environments that welcome and leverage their wealth of knowledge, which fosters a sense of belonging and relevance.
Social Interaction and Networking
Work provides a platform for social interaction, professional networking, and a sense of community. Staying in the workforce helps boomers maintain social connections, reducing the risk of isolation often associated with retirement.
Lifestyle Choices and Personal Fulfillment
Some baby boomers choose to remain professionally active because they derive personal fulfillment and enjoyment from their work. The structure and purpose provided by their professional roles contribute positively to their overall lifestyle.
Delaying Retirement for Health Benefits
Concerns about healthcare costs often accompany retirement decisions. Boomers may delay retirement to continue benefiting from employer-sponsored healthcare plans, recognizing the importance of ongoing health coverage.
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