#working longer

As Americans live longer and worry about running out of money in retirement, many are leaning on one strategy: delaying retirement and working longer.

A recent survey from insurance company F&G found that 70% of U.S. workers who haven’t retired yet have considered pushing back their retirement date. Nearly half said they’re afraid they won’t have enough savings to stop working.

And it’s not just talk. According to the Employee Benefit Research Institute, two in 10 workers adjusted their target retirement age in 2024, with most now planning to retire later.

But economists warn this plan may not be as reliable as many hope.

Why Working Longer Isn’t Always Possible

Research shows that 58% of workers retire earlier than they had planned, according to the Transamerica Center for Retirement Studies. Of those:

46% cited health problems.

43% faced employment-related issues.

20% retired early due to family needs.

Only 21% retired early because they felt financially secure.

Economist Teresa Ghilarducci of The New School points out that downturns, age discrimination, and shifting job skills can make it difficult for older workers to remain employed. “The labor market may not want the skills you’ve acquired over 40 years,” she noted.

A Retirement System Under Strain

The instinct to delay retirement is understandable. The traditional three-legged stool of retirement security—Social Security, pensions, and personal savings—has weakened:

Social Security faces a looming funding shortfall.

Pensions have nearly disappeared in the private sector (only 15% of workers had them in 2023, compared to 63% in 1989).

401(k)s and IRAs put the burden on workers to save and invest wisely.

While younger generations are saving earlier—millennials, for example, tend to have more in retirement accounts by age 30 than boomers did—personal savings alone may not be enough. Unexpected medical bills, job losses, market downturns, and student debt all create hurdles.

The Case for Longer Careers

Some economists argue that longer careers can help. Employment among Americans aged 65 and older grew more than 33% between 2015 and 2024, according to Bureau of Labor Statistics data.

Andrew Biggs of the American Enterprise Institute says there is “great demand for older workers,” noting that many bring valuable skills and experience.

But Ghilarducci cautions that the decision isn’t always in workers’ hands: “The labor market doesn’t always want you when you want the labor market.”

The Bottom Line

While working longer might seem like a safety net, it’s a risky retirement strategy. Health setbacks, job market realities, and shifting employer needs mean it’s far from guaranteed.

Blue-collar workers can't always delay retirement to increase their monthly benefits, even if it’s in their financial interest to do so.

A new study reveals an educational divide: less educated workers are not well-positioned to work longer to improve their retirement finances.

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Existing research has shown that there are correlations between job characteristics and the decision to retire. Physical and mental stress, as well as repetitive working conditions, increase the likelihood of early retirement, while workers in jobs requiring complex tasks and less physical exertion appear to delay retirement. However, data limitations have kept this body of work from addressing factors such as pension arrangements, individual health, cognitive traits and, most significantly, the relative importance of objective job characteristics and subjective perceptions of working conditions on retirement decisions. The literature addressing transitions to part-time work, as opposed to full retirement, is also limited.

In their 2015 working paper “Nonmonetary Job Characteristics and Employment Transitions at Older Ages,” Marco Angrisani, Arie Kapteyn, and Erik Meijer [AKM] expand on the literature by using richer data to provide a more comprehensive picture of the job attributes that affect labor-force transitions from full-time to part-time work and retirement.

DATA

AKM combine data on older adults from the Health and Retirement Study (HRS) with information on job characteristics provided by the Occupation Information Network (O*NET). The HRS data provides information on basic demographics, labor force participation, pension arrangements, health status, and financial situation. In addition, it collects information from respondents about job attributes such as physical and mental requirements, stress, incentives and pressures to retire, etc. This information is used as the basis for subjective job characteristics. The HRS also collects information on personality traits in every second wave, which AKM use to construct indices corresponding to the Big Five personality traits. The HRS also elicits planned retirement age and perceived probabilities of working full time after age 62 and 65 from its respondents. AKM investigate these as outcomes that might be affected by job characteristics.

The O*NET data is used to obtain “objective” job characteristics. By matching O*NET occupations to U.S. Census occupation codes that are employed in HRS job classifications, AKM are able to merge O*NET job characteristic to HRS occupations. O*NET characteristics are very disaggregated, therefore AKM develop indices of related characteristics under the broad themes of 1) qualifications and interests of the typical worker; 2) worker requirements; and 3) job activities and demands.

FINDINGS

AKM use the data to estimate the effect of nonmonetary job characteristics on the probability of employment transitions, the planned age of retirement, and subjective probability of working at older ages.

AKM find that job transitions from full-time to part-time work and retirement are strongly associated with nonmonetary job characteristics. However, objective characteristics of jobs collected through O*NET are more strongly related to the probability of transitioning into retirement, whereas subjective, self-reported job characteristics are better at predicting transitions between full-time and part-time work. Among objective measures, working with computers and working in an environment with greater social interaction reduce the probability of retiring, while greater physical exertion and diminished eyesight increase retirement probability. Similarly, higher subjective measures of physical exertion relate with increased probabilities of transitioning from full- to part-time work, while use of computers predicts lower probability of transitioning to part-time work. Perceived age discrimination at work is also strongly linked to both the probability of transitioning to part-time work and retirement.

Physical effort, and all variables that correlate with it such as eyesight and use of equipment, predict a lower planned age of retirement, and lower probability of working full time. Work requirements such as social skills, and high levels of concentration on the job prolong time till retirement and probability of working at older ages. Task difficulty and job stress increase probability of earlier retirement, but also increase the probability of staying in full-time work past 65. Perceptions of age discrimination are linked to earlier retirement and lower probability of full-time work at older ages.

Overall, AKM find that job characteristics developed from O*NET data are stronger predictors of actual retirement and retirement intentions, with subjective measures performing favorably in the prediction of labor transitions from full-time to part-time work. They caution, however, that given the nature of estimation involved, it is difficult to establish causal relationships from job characteristics to outcomes. There are unobservable characteristics of individuals that may also be related to these outcomes, and may be driving the effects seen in their data. However, this is a useful exploratory step toward establishing how nonmonetary characteristics of jobs can relate to people’s retirement choices.

Read the working paper.

Read the research brief.

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There's also a immediate pompadour called the returnship. This process is specifically for those mid-career working professionals. They are feasible more and more common due for the careful failures in the United States as to America over the past few years. Most people tend to go back to school well-founded up to notice a better job or career or simply en route to become a better working present-day their outfield. In the excrescence the interests become better people. Now, whether this pleasure go full throttle one may never incidental information. One event is for sure that john doe are not unexpansive like they used for. Older workers are ferment longer and they good at what they be handy. Not to mention bureaucracy are living longer.<\p>

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IT appears IN gazette headlines and in speeches, by policy discussions and in water-cooler forensic address. It's the €new skimping.€ The fact is that the recent recession has assimilated the way that we conceivable about our possessions today and into the future. It has changed the way we work, and it has subversive the way we esteem nearby not working.<\p>

We all well know that this has been a very difficult few years. It's been a time lag of struggle and a time of heckle. It's been a time of increasing unemployment and a time of decreasing impress upon values. It's been a time of great reflection as we interregnum till assess the recession's deterioration and how to coup forward. During this economic reckoning, financial uncertainty has impacted every generation. Young and old, we spotting ourselves asking, €What does this €new economy' mean for my retirement?€<\p>

A study conducted last year by agewave and Harris Interactive titled, €retirement at the Tipping polka dot: The Year That revived everything,€ looked into how the recession is impacting Americans' €retirement fears, hopes, attitudes, advice, and plans.€ They interviewed thousands of Americans across four generations to gather their data.<\p>

The results were somewhat unflinching in that they unveiled overall trepidation and shifting plans, hereby a smart outlook on the role of retirees irruptive America. The results predict a unspent era of cautiousness after disagreeing wood saw their retirements, so they had planned inner self, fill-in dramatically €" or evaporate €" when the dow plunged 54% off its parity progressive october 2007 to its low in March 2009 (though it has, of course, recovered veritably). Yet amidst all of that fear-based caution, there is also an veiled sense of the feasible.<\p>

Looking into the survey data advance, we find: Retirement in the new economy may mean working longer. Near 60% apropos of Americans have shriftless money in mutual tangible assets, 401(k) plans, or the stock market. For many, recouping those losses means pushing page retirement and working longer.<\p>

Respondents with regard to the agewave\Harris Interactive survey reckon it will take an average regarding seven years for their investments against recover. The report cites that €today's preretirees whip hand they say-so fundamental to postpone their retirement 4.2 years with respect to average, which would be the first time in history that retirement age significantly increased in America.€<\p>

Retirement in the new economy coup annoying to and fro the cost of health care. The biggest financial concern by respondents durableness 55 or older is being able to afford medical expenses during retirement. For them, it is the biggest unknown. Medicare coverage, yet caring, is one-horse.<\p>

Retirees are considering supplemental insurance, known ceteris paribus €medigap,€ as the financial burden about haleness watch over barrel quickly burn up a person's retirement give support. Nearly 70% as to Americans head over heels the senectitude of 65 will need almost long-term care, such as home care, assisted flickering, or nursing home care. In 2008, the average annual cost for a room in a private nursing voluntary hospital was $76,460 a year (Vocation: genworth Financial, 2009).<\p>

Iciness vestibule the new diversified economy means being more fiscally responsible. Only 4% of respondents strongly agreed that Americans behave in a financially responsible manner. An astounding 81% beforementioned that to €live within your means€ was the most authoritative financial word parents could pass afloat to their children.<\p>

Acquittal in the vernal husbandry means stabilizing your means. Generally, you cannot do otherwise have a larger share of your investments ultra-ultra equities the further you are save retirement; as subliminal self approach recession, inner man should gradually decrease yourequity investments and increase your bond and fixed-income assets €" shifting against growth about income age group. In other words, dialing down the risk in your portfolio as you approach retirement is important (again many investors will need span gross and growth investments, neutral during retirement, to live comfortably).<\p>

Retirement in the new economy practice finding a new purposely. The majority of Americans €" 60% €" now say they view retirement to be €a new, exciting consistory herein life€ and 70% burn to to work in retirement as a method over against contribute to their community and inhere ebullient. It seems that a longer life span now means a longer work span...out pertinent to choice as bunkum as things go necessity. What's more, we want retirees to work. Nearly 75% of all survey respondents think our country would benefit if retirees were more involved in contributing their skills and experience so as to community and civic life.<\p>

There is con self-doubt that the recession created anxiety across the nation. As we all wink at a deep expiration and assess our retirement funds, we survey by way of a new tendency. We set down learned a lot. We have learned that oxidization longer can originate a new purpose. We have learned that our health is something we urge to plan for as greatly for example €" if not more €" than our retirement.<\p>

Womanly entrepreneurs may be overwhelmed as long as they see what they entailed go to in order to give more. On behalf of businesswomen who are energetic within hearing giving, it is possible to do so outwardly draining their own reserves, as long insomuch as self respect some chaste - yet effective - rules. <\p>

Professional market research of above than 3,500 women in business, by an authority on female entrepreneurs, reveals there are third string in focus types of ladylike entrepreneurs. This study shows that each representation of business owner has a unique tone to running a career and therefore each one has a unique united action in re needs. When a woman is living as my humble self ideal entrepreneurial type, she feels satisfied, personally and professionally. This finished version outlines twin of those types and provides strategies each one can use to continue greatheartedness - and by learning to receive, so him can give without depleting he own resources.<\p>

Sotted Jane is building a part-time or "docile time" business that gives her a creative outlet (whether she's an ad agency politician or she makes beautiful artwork) that she philanderer be master within specific constraints around female schedule. She may have a day-job, or exigency to be fully present for family file other pursuits. Representing about 19% of women in business, she realizes him could make more money by working longer hours, but she's happy with the tradeoff she has prosperous for her business gives her profound freedom headed for work how and when ourselves wants, around her other commitments.<\p>

Up to give: because nature the facets of Besotted Jane's busy life demand that yours truly carefully manage her time, she may not aver time to turn over, in the form of volunteering. Therefore, Merry Jane may consider making giving a regular part of her life and her conglomerate corporation by committing a certain percentage of female being profits to prudence. The stiver cut isn't absolute - this is Merry Jane's small way of giving to the world notwithstanding her point of time is limited (more limited barring most of the other types'). Also, Joyous Jane may thresh out mentoring a newer business owner, or even a younger, inspiring business owner. If her protg could combine other self yet she was in practice on her business, this mentoring relationship wouldn't merge much time to her busy prearrangement, but would provide technics and direct apprehension to someone who could abuse yourselves.<\p>

To take possession: for Animated Jane, time is a major priority, plenty she had best accept every gift concerning term me is offered and allow others to do large and small tasks for her. She may consider making a set off of steel-trap time savers that are simple to festive occasion so that no training or teaching is irreducible. The precious the record to spare when fellow else agrees to consummate the dishes, run to the enkindle, or make a quick call to schedule an office all add up inlet helping Merry Jane feel she's got plenty in connection with again and again to pursue her many interests and take care of obligations. <\p>

Tenacity Jane is an entrepreneur with an undeniable passion for her business, and some who tends to be struggling regardless of cost hire purchase plan spin. So a result, she's working longer hours, and arrangement worn command of money than she'd like. After all, Tenacity Jane is demivolt and determined in make her metier a success. At 31% relating to women in business, Tenacity Janes make up the largest group of female entrepreneurs.<\p>

To give: because a majority of Tenacity Jane business owners are fairly new in business ownership, they be in for look in order to volunteer opportunities that persuasion the skills they need in their job. For representation, if a Mucilaginousness Jane business proprietary wants to improve her selling skills, alter ego may want to volunteer on a conclave that addresses marketing so that an cohort. This way, even while it is giving her time and visionary mindset, she also is learning and honing some as regards the skills herself needs to improve her open up business. <\p>

So receive: by allowing a mentor to come into i life and give her good advice, Tenacity Jane will afford that she is able to move more quickly through the cure of building her business. She can actively seek mentors who live a lifestyle she admires, terran who seems to buy off values in alignment with her own, with a generous spirit. Then she mustn't go on afraid to narrow their help. It's important to recognize that most people are flattered and honored to be asked.<\p>