What retirement? Why more older Americans are still working full-time

Also: More Americans Are Optimistic They'll Get Social Security Benefits When They Retire

͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌  No images? Click here December 19, 2023 The number of older workers in the labor market is growing — so much so that the share of Americans 65 and older who were employed in 2023 is nearly double what it was 35 years ago. About 19% of Americans in this age group were working this year compared to just 11% in 1987, according to a new study from Pew Research Center. What’s more, researchers found that the majority (62%) of those older workers are working full time. Workers 65 and older are projected to account for most (57%) U.S. labor force growth over the next decade. But the study’s findings aren’t as bleak as you might think: The earning power of older workers has also expanded in the past few decades, with the typical worker age 65 and up earning an average $22 per hour in 2022. That’s compared to $13 per hour in 1987. Younger workers’ wages haven’t grown at the same rate, and as a result, the earning disparity between younger workers (those aged 25 to 64) and older workers has shrunk significantly. Some older adults have to continue working past retirement age because of financial need. But that’s not the only factor: Older adults are more healthy and able to work longer than in the past, and Pew says that many jobs have become more “age friendly” since 1990. "We are also seeing that older workers are less likely to say they find their job stressful, reporting higher levels of job satisfaction overall compared to younger workers,” Richard Fry, a senior researcher with Pew, said in the report. You can find out more about the study’s findings by reading Money reporter Brenden Rearick’s story. — Mary Ellen Cagnassola, Money reporter P.S. If you got this newsletter from a friend, sign up here for email delivery to make sure you don't miss the next issue.

Retirement Stat of the Week: $1,112,183

On average, Gen X workers between 43 and 58 say it will take $1,112,183 in savings to retire comfortably, according to a recently released survey from asset management firm Schroders. At the same time, this group only expects to have about $661,013 saved. Roughly 45% of Gen Xers say they haven’t even done any retirement planning, making them less prepared than millennials (43%) and non-retired Baby Boomers (30%).

Advertisement

Sign up for iPhone Life Tip of the Day Discover your Apple device’s hidden features for free with iPhone Life Tip of the Day. Join 600,000 happy subscribers who are mastering their Apple devices in just one minute a day. Subscribe for free

Retirement 1, 2, 3

Medicare enrollees could pay less for some prescription drugs next year thanks to a provision of the Inflation Reduction Act. The Senate Finance Committee is increasing its oversight of the Social Security Administration in response to revelations that the agency issued billions of dollars of accidental overpayments to beneficiaries. Thousands of long-term care insurance policyholders will have to choose between significant cuts to their benefits or potential triple-digit premium increases as a result of a class-action lawsuit against Genworth, the U.S.’s largest LTC policy provider.

More Insights and Advice from Money

social security More Americans Are Optimistic They’ll Get Social Security Benefits When They Retire Despite ongoing concerns about Social Security becoming insolvent in the next decade, more Americans are optimistic they'll receive benefits when they retire. READ MORE Money; Shutterstock; Getty Images

retirement planning Early Retirement Savers Are Burning Out. ‘Coast FIRE’ Might Be the Answer If you’ve stumbled upon any financial independence, retire early (FIRE) influencers on social media, you’ve likely noticed similar themes: Escaping from the 9-to-5 grind. READ MORE Money; Getty Images

social security The Government Is Coming After Social Security Overpayments The federal agency that administers Social Security benefits is making new efforts to reclaim overpayments, and it may try to claw back money if you’ve been receiving too much. READ MORE Money; Getty Images

This newsletter is free because Money earns a commission when you click or make purchases from the links in this email and on our site. We also receive compensation for some of the products and services featured in this message. Offers may be subject to change without notice. Learn more about how we make money. Privacy Policy • Advertise With Us • We're Hiring! To stop receiving these emails, unsubscribe or manage your email preferences. Copyright ©2023 Money Group, LLC. All rights reserved. Metro Office Park Calle 1, Building 7 Suite 204, Guaynabo, Puerto Rico 00968, USA