This is a blog post that ran on my website http://www.attorneybarbaradalvano.weebly.com last month.
We hear that many older Americans plan to work well past their “normal” age for retirement. But, Are there statistics to back that up; Are there jobs for older workers who want/need to get a paying job; and What is the impact of olderworkers on the American economy?
In answer to the first question – Will Americans be working beyond the age of retirement..According to the Bureau of Labor Statistics (BLS): “With the
baby-boom generation about to start joining the ranks of those age 65 and over, the graying of the American workforce is only just beginning.” Here are their
statistics to back that up…According to the BLS, between 1977 – 2007 the employment of 65+ workers increased an astonishing 101%. (Men increased by 75%
and women by 147%.) Workers over 75 increased 172% over the same period (although those workers over 75 accounted for only .8% of those employed in
2007) “The graying of the workforce is definitely expected to continue.” And the numbers may well soar another 80% according to a 2016 projection: Americans
aged 65-74 will increase 83.4% in the labor force and Americans 75+ will see a whopping 84.3% increase.
But will the jobs be there for older workers? Again, the answer appears to be,
- Older workers who cannot find a job will be willing to begin “start up”
- They will delay Social Security and will be able to utilize the more flexible work schedules being offered.
- They will also take increasing number of part-time positions and
- use their experience for mentoring in the work place.
Is the graying work force good for the U.S. economy? Again, the answer seems to be, Yes. While those 65+ delay taking Social Security this places less of a
burden on the system. Their earnings may be taxed, thus adding money to federal coffers. While seniors work there will be decreased demand for social services.
And they will be saving even more money for their delayed retirement. All of this is positive for the economy.
Will older workers be pushing others out of the work force?
In the longer view, the answer appears to be, No. The U.S. birthrate since 2009 has shown a significant drop, this according to the cdc.gov site. Americans are having
smaller families and they are waiting longer to have their first child. This may be due to the ever increasing costs of having/ supporting children and the
fact that parents look to the future rising costs of educating their children. The older workforce could fill the potential gap of the decreasing numbers in
the work force.
Thus, Americans are “Running From Retirement” and remaining in the workforce.
What does this mean for an individual’s long term plan? The potential looks good for Baby Boomers who wish to stay productive, to do just that. It also
means that they will need careful planning to make sure that those extra work years make a positive impact in their lifestyle, their future and the future of
those that matter.
Good estate planning can assure that when (or if) you are ready to leave the work place, your ability to have a secure future will be more secure.
Contact me if you have questions about Estate Planning issues.