Americans Are Working Later In Life

Increasing numbers of Americans are working well into what used to be considered the retirement years, according to the Employee Benefit Research Institute (EBRI). From a low point of 29.4% in 1993, the percentage of adults ages 55 or older who are in the labor force has steadily increased, reaching 40.2% in 2010.

Nearly half (46.4%) of men ages 55 and older were in the labor force in 2010, as were 35.1% of women. Nearly all of the overall growth in labor force participation among this group is due to an increase in the proportion of women continuing to work after age 55. The proportion of men ages 55 and older participating in the labor force in 2010 reflects a 6% decline since 1975. By comparison, the proportion of women ages 55 and older increased 52% over the same time frame (calculations by RESEARCH ALERT).

Among women ages 55-59, more than two thirds (68%) were in the labor force in 2010.

Highly educated adults tend to stay in the workforce longer than their less-educated peers. More than six in 10 adults (63%) ages 55 and older with graduate or professional degrees were in the labor force in 2009, compared to only 22% of those without high school diplomas.

Although the recession has affected older Americans’ retirement incomes, particularly those whose assets include stocks, bonds, and mutual funds, there’s also a need to continue working to retain access to employment-based health insurance. Extended participation in the labor force appears to be a long-term trend, which has continued despite the economic downturn, rather than solely because of it. [WORKFORCE/EMPLOYMENT]

SOURCE: “Labor-Force Participation Rates of the Population Age 55 and Older: What Did the Recession Do to the Trends?” EBRI Notes, February 2011, Employee Benefit Research Institute, Craig Copeland , Report Author, 1100 13th St., NW, #878, Washington, DC 20005; 202-775-6356; copeland@ebri.org; www.ebri.org