My Comments: Yesterday, I talked about the need for new people to enter the work force. Today I’m talking about people who cannot leave the work force.
There are an increasing number of baby boomers who cannot leave the work force because they simply don’t have enough money. It presents an untenable outcome: die sooner or not have money to pay your bills.
Since I don’t have a way to print money, I’ve come up with a way for people to think, or perhaps rethink, their strategic vision for retirement. It’s an online retirement school called Successful Retirement Secrets. There are links on this page that will take you to several free videos designed to help you think about all this.
by Ted Knutson \ January 24, 2019
Many workers are facing a nearly impossible challenge: financing 30 years of retirement with only 40 years of work, two National Bureau of Research economists warned today.
“If a couple (in their early 60s) retired today, the survivor of the couple would have about a 40 percent chance of living an additional 30 years,” Robert Clark and John Shoven said in a report to a Brookings Institute symposium on the elderly in the workplace.
With the Baby Boomer generation nearing and surpassing the traditional retirement age of 65, they noted the proportion of the labor force age 55 and over rose from 11.9 percent in 1994 to 21.7.
It is expected to hit 24.8 percent by 2024.
At the same time, the economists pointed out the share of persons 55 and older working rose from 30.1 percent in 1994 to 40.0 percent in 2014.
A tight labor market, like the one employers are coping with now, companies may decide to retain older workers or even to hire older workers to fill vacancies, Brookings Institution economist Martin Baily and Ben Harris, once chief economist to former Vice President Joe Biden, told the session in a paper.
“This can break down the barriers older workers face and allow them to prove that they remain capable,” the economists said.
They added older workers are also keeping in the workforce by working for themselves in large numbers
Roughly 16 percent of seniors over age 65 are self-employed—over twice the rate of prime-age workers, according to the researchers.
They said the number of people 60 and above has increased substantially though labor market participation the elderly in their 70s remains relatively rare,
However, the experts noted roughly one in 10 Americans older than 75 projected to be in the labor forces by 2026.
The single best way to ensure that today’s workers can enjoy a secure retirement is to persuade them to stay in the labor force longer and convince employers to hire and retain them,” Center For Retirement Research At Boston College Director Alicia Munnell told the gathering.
Ted Knutson is one of the most experienced financial regulatory reporters in Washington. For years, he has covered the SEC, CFTC, the bank regulators and the key Congressional committees.