http://economix.blogs.nytimes.com/2013/01/24/older-but-not-yet-retired/?ref=economy
According to the article, in 2010 16.1% (increased from 12.1% just two decades earlier) of the US population 65 years and older was in the labor force (either working or actively looking for a job). In fact, it is no longer uncommon for people over 65 to continue working.
The increase has been partly attributed to women joining the labor force over the years though men have showed large increased too. There are many reasons behind this trend. Some are healthy enough in their late 60s to keep working. Some can't afford to retire due to financial difficulty (this group account for about 13% of those who said they would be delaying their retirement).
There are absolutely some benefits but issues also arise. With people now delaying their retirement, many job opportunities might not be available to the younger generations as soon as they expect. But again we can't blame them as most of them clearly don't have a choice.
With social security running dry the average age of the workforce is only going to increase. And it is very true that as workers are staying in the workforce longer, younger workers who are entering the workforce will have harder times finding jobs.
ReplyDeleteI agree with you Steve. It will be interesting to see if unemployment for recent graduates increases in the coming years. It will be also interesting to see how the Government combats this problem of a depletion of our countries social security. Will they raise the minimum age? Will they give out less money? Who knows only time will tell.
DeleteThe increase in the minimum age required to receive medicare along with continually improving medical technology and knowledge will also play a large part in the rising average age of the workforce. These factors make it difficult for younger generations to enter the workforce and prevent middle-management from promotions as well.
ReplyDeleteI believe this situation is due to stagnant economy and recent recession we encountered as a nation. While it may not necessarily be a negative that more people are working, however it could easily be because many people are not where they need to be financially to comfortably retire. I do not blame anyone who chooses to work past the age of 65 as long as their work efficiency does not decline. I agree it doesn't allow people to move up the company ladder and become more successful but until our economy improves we will continue to see this trend.
ReplyDeleteA possible solution to this is to privatize social security. Because the private sector is more competitive they can offer higher returns to investors. Consumers will be able to pick the company that is offers the best product. By doing this, the work force will be able to retire and live off their investments, allowing older workers to retire.
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