Fewer older Americans are working now
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Fewer older people are working now than before the pandemic.
Why it matters: This is basically good news — older Americans experienced a surge in wealth over the past few years, and more appear to be choosing to enjoy their remaining time on earth free of the work grind. Some also were pushed into retirement by COVID and decided to stay there.
"The post-COVID trend is mostly people saying 'I have enough money to retire and I want to retire now," says Nick Bunker, an economist at job site Indeed."
By the numbers: In June, 18.6% of Americans age 65 and older were employed, down from a peak of 20.1% in February 2020.
The big picture: Though their numbers recently decreased, the share of older adults in the labor market has been steadily increasing since the late 1980s.
- That's because of changes in Social Security benefits that pushed people to work for longer, as well as a move away from pension plans that also nudged people out of jobs earlier (and into a more financially secure retirement).
- Americans are also living longer, and those with more education don't necessarily need to stop working — their jobs are less physically taxing.
The bottom line: "If fewer people in retirement age are not working because they have more money to fund their retirement, I think that's a win," says Bunker.
