Americans are now working into what used to be known as their retirement years, according to a report from the Bureau of Labor Statistics, which shows that people over the age of 65 are working more while the younger people are actually working less.
According to the data, “By 2024, 36 percent of 65- to 69-year-olds will be active participants in the labor market. That’s up from just 22 percent in 1994.”
A new U.S. jobs report released on Friday shows that nearly 19 percent of people aged 65 or older were working at least part-time in the second quarter of 2017.
Millennials are urged to start saving money for their future retirement plans now as experts predict that this trend will continue.
Studies show that last quarter, 32 percent of Americans 65 to 69 were employed as more senior citizens are either unable to retire or they’re choosing to keep working. And 19 percent of 70- to 74-year-olds were working, which is up from 11 percent in 1994.
Factors keeping older Americans in the workforce include better health, longer lives and the desire to stay active and alert, while other simply need the money.
Retirement, on the other hand, has become more expensive, due to stagnant wages and the decline of the traditional pension, which makes saving money more difficult.
Even retirees still want to work a bit. According to a survey by the Employee Benefit Research Institute, 79 percent of U.S. workers expect to supplement their retirement income with a side job.
However, many don’t account for the fact that they may be forced to retire early. In fact, 61 percent of American retirees say they retired sooner than they’d planned, and it’s often due to health issues. In fact, this statistic points to the fact that Americans are not as healthy as they used to be.
According to the 2017 Aegon Retirement Readiness Survey, of 16,000 people in 15 countries, that number is higher than anywhere else in the world. In other countries around the world, only 39 percent of retirees say they quit working early.
And then there’s the matter of getting hired. “Although age discrimination has been illegal for 50 years, employers continue to see older workers as a liability,” said Ruth Milkman, a sociology professor at the City University of New York.
Seniors who want to extend a full-time career may be forced to take temporary jobs, for example, or work as independent contractors. “Frozen out of standard employment, older workers turn to more precarious (and less well-compensated) employment,” Milkman said.
Self-employment has become a way for some retirees to keep working, according to a study released last month by the National Bureau of Economic Research that analyzed U.S. tax and survey data.
Ironically, seniors who keep working are usually the ones least likely to need the money.
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