Dive Brief:
- The latest U.S. jobs report shows that 19% of Americans 65 or older did some part-time work in this year’s 2nd quarter, Bloomberg reports. Americans work beyond retirement age because they either enjoy working, want to remain active or need the money.
- A recent Employee Benefit Research Institute (EBRI) survey found that among people who considered themselves retired, 79% hoped to work a little to supplement their income.
- Bloomberg cites several challenges for workers staying employed in their retirement years, including lower pay than they previously earned, health problems, healthcare costs and age discrimination.
Dive Insight:
A recent CareerBuilder study backs up the labor report results. The Harris Poll-CareerBuilder survey shows that 30% of workers 60 and over expect to keep working until 70 and beyond, and 20% don’t think they’ll ever be able to retire.
Because of a strong desire to work well into retirement (but an equally strong desire for flexibility), workers 65 and older are drawn to the gig economy, becoming freelancers, independent contractors, consultants and temporary workers. About 40% of people between 53 and 64 are freelancing. But some might be unable to deal with uncertain or fluctuating income.
More generally, this trend reflects growing worry over accessibility of retirement. The Addison Group’s Third Annual Workplace Survey found that more than half (51%) of the survey's respondents weren't sure when or if they would ever be able to retire.
Often, the workers who need to work well into retirement either didn't earn enough to put away for retirement or thought they would have enough on which to live. Employers can help upcoming generations prepare for retirement by encouraging them to save through employer-sponsored retirement plans.
Although the Age Discrimination in Employment Act prohibits age bias in hiring and employment, companies still discriminate against workers that they think can't do the job or those who they view as a liability health-wise. Employers can monitor their hiring practices to make sure job candidates aren't being denied employment solely because of their age.
