The Bureau of Labor Statistics estimates that over the next decade the labor market will continue to age, with the greatest growth coming from workers aged 55 and over. Among those aged 65 to 74, 32% expect to still be working in 2030, compared with 27% in 2020 and 19% in 2000. According to a Joint Economic Committee report, while workers over 55 make up just 35% of the population, they contribute an estimated 40% of the national economic output.
In a recent study that looked at factors behind the decision to extend work beyond normal retirement age or return to the workplace after retiring, the majority of older Americans say they continue to work because they either can or want to. However, when asked about the “most important” reason they were still working, 26% cited the need to continue working for financial reasons, compared to 13% who say they want to have more money in retirement or that working gives them a sense of purpose. Delving further into participants’ financial motivations, 92% of respondents indicated they needed or wanted more money for retirement, which included 89% of previously retired workers and 94% of those working past the traditional retirement age. In addition, 60% say they have less than $500,000 in savings, including all investments, savings accounts, pension plan/defined benefit plans, and retirement plans.