Silver surge in the labor force
As of 2023, 11 million Americans over the age of 65 were still actively working, according to the Pew Research Center. The proportion of retirement-age workers in the economy has quadrupled since the mid-1980s.
Several systemic factors have driven this trend. Labor economists cited by Pew suggest that older Americans are now more likely to be healthy because of medical advances, less likely to work in physically demanding roles and more likely to be well-educated. These factors make it easier for many seniors to continue working for as long as possible.
On an individual level, however, the decision to work when you could be resting on a beach generally boils down to two reasons: economic necessity or boredom.
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Discover the secretSome want to work, others have to
With an estimated net worth of $400 million, according to Celebrity Net Worth, Letterman clearly doesn’t need to work. He belongs to an elite group of wealthy seniors, such as Warren Buffett, Bill Gates and Bernard Arnault, who continue to work simply because they enjoy it.
A recent survey by F&G Annuities & Life found that 51% of pre-retirees over 50 and retirees are considering delaying or coming out of retirement. Among pre-retirees, 33% cited a love for their work as their reason, while 45% of retirees expressed a desire for intellectual stimulation as their motivation to rejoin the workforce.
Simply put, many seniors find retirement boring. Others, however, face economic pressures that compel them to rejoin the labor force. A lack of savings combined with rising costs of living has pushed less wealthy seniors back to work.
According to the same survey, 49% of pre-retirees plan to delay retirement due to inflation, while 44% of retirees said inflation is driving them back to work. These individuals face higher risks if a medical or personal emergency prevents them from working.
With this in mind, younger Americans should prioritize early planning and diligent investing to build a secure nest egg. Whether you aim to work into your 80s or dream of enjoying long siestas on a beach in Greece, having the choice is far better than being forced to work due to market pressures in your senior years.
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