In the US the full retirement age is 66 years old, yet the Economist reports that almost 40% of American men aged 65-69 are working compared to 25% in the 1980s. There are a number of reasons why individuals are working for longer. The mortality rate has decreased, people are having children later and working longer may give an increased sense of purpose. So, perhaps jobs really are for life rather than just until middle age.
We’re living for longer
The Sightlines Project, carried out by Stanford University, reported that men now have an additional 17 years of life expectancy and women an additional 20 years compared to 1940. This means that some individuals may have to work longer to amass enough income to support their retirement and maximize earnings. This is further substantiated by a report that predicts that by 2022 the labor force participation rate will increase to over 30% for those aged 65-74 years old, compared to 26% in 2012.
People are having children later
The National Center for Health Statistics reports that the number of first time American mothers aged 35 and above is now nine times higher than it was in the 1970s. So, unless this group have saved their entire life for children, it is likely that they will need to work longer to provide for their children. With regards to American men, it’s reported they are also becoming fathers later in life especially if they hold a bachelor’s degree, again suggesting that educated individuals work for longer.
Working for pleasure
It’s not all about supporting families and being forced to work for longer, often working gives individuals motivation and a social life. Therefore, older people may choose to work for longer to keep their sense of purpose and independence. Research by Patrick Hill from the Carleton University suggests that a sense of purpose, such as work, increases length of life. As healthcare and medical advancements improve health, older people may be more physically and mentally able to work past 65. However, if health is an issue, with the increase of flexible working, home working and technological developments, older people may be able to work from home to allow them to keep working. In addition, the Sightline Project reported that the number of over 65s who have elected to work part time has increased, and as the increases were almost entirely among educated individuals it again suggests that the educated are working for longer.
There are some people who will work for longer for financial reasons to support themselves and perhaps their families. Other individuals may work for longer because they want to and the benefits they gain from working provide purpose and independence that perhaps retirement would not. Whatever the reasons, the evidence is clear that people are working until later in life than in the past and it does not appear to be a trend that is likely to change in the near future.
