Looking at an extended life span with limited retirement money and a willingness to show their relevance in the workplace, baby boomers have decided to stay at or go back to work.
As an example, although much has been discussed regarding how younger generations adapt to the office, according to the Pew Research Group, the fastest-growing demographic in the workforce is people 75 and older.
Pew also reports that although all boomers will reach retirement age before 2023, 1 in 5 Americans ages 65 and older (19 percent) was at work in 2023, nearly twice as many as those in that sector working 35 years ago.
Retirement in 2023 is a different dream for boomers (those born between 1946 and 1964) from what it was for their parents, says John Anderson, a business and life coach and author of the book “Replace Retirement.” He said the reasons behind that generation’s willingness to work later into their retirement years can’t be reduced to a single factor.
“We like to put our finger on the one thing, but when I work with people, what I hear is that they think they’re going to live longer, or another will say they need more spending money, while another will say they really miss the relationships they had at work,” he told The Epoch Times.
“A lot of our identity comes from our work. Some just assume [that] when they retire, they’ll just vacation, travel, visit grandkids, play golf, or do household chores and work in the yard. They then realize they can’t do that full time and enjoyed things like golf more when they were working.”
The current workforce shift isn’t a trend, according to the Bureau of Labor Statistics. Its study shows that the share of workers aged 65 and beyond in the workforce is expected to keep growing, accounting for more than half of expected overall labor growth from 2021 to 2031.
One perceived deterrent to hiring older workers is the cost of hiring someone with decades of experience compared with that of hiring someone just a few years out of college. However, Catherine Collinson, CEO and president of the Transamerica Institute, a nonprofit that includes the Transamerica Center for Retirement Studies, said that concern is unfounded.
“In short, there could possibly be a perception or misconception that older workers are more expensive, and these days, that might not be the case,” she told The Epoch Times.
“I’ve also heard that the perception of increased health care costs because older employees are more inclined to have health care issues is a concern. But younger employees are also looking at starting families, and the reality is that health care costs apply to people of all ages.”
Why Boomers Remain in the Workforce
A lack of savings to support retirement also is a relevant reason why boomers are working longer, according to Ms. Collinson’s Transamerica Center for Retirement Studies. The nonprofit’s survey reports that only 24 percent of Americans strongly agree they are currently building or have built a large enough retirement nest egg.
Inflation, changes in company pensions, and a “less generous” distribution of Social Security benefits are also factors, according to Pew senior researcher and report co-author Richard Fry. The study also points to employers’ expanding perks—such as phased retirement, paid grandparent leave, and menopause benefits—to get older workers to stay longer.
Mr. Anderson said the decision for those in retirement age to keep working isn’t just about finances, saying many older workers he coaches who haven’t retired yet are looking for relevance.
“I help all my executives find their purpose. I have not had a single executive I work with actually leave a company,” he said.
Another recent Pew Research Center survey found that workers ages 65 and older are more satisfied with their jobs overall than younger workers. They are more likely to say they find their job enjoyable and less likely to say they find it stressful.
“A job, by definition, is ‘what’s in it for me,’ and it’s normal and acceptable on our journey,” Mr. Anderson said. “But in the transition, you understand the journey is really about taking care of the customer. They can still see ‘what’s in it for me’ but take care of it by servicing the customer.”
However, that sense of purpose can go in a different direction for women, according to Ms. Collinson, who said men have found it much easier to return to work or keep working beyond retirement age.
“Women, societally, are more likely than men to take time off for parenting and caregiving and once they’re out of the workforce find it tough to jump back in at a later age,” she said.
“Women also do the lion’s share of caregiving for older parents, and that’s more risky than parenting because you don’t know how long it’s going to last. It could last a year or 10 years.”
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