There are compelling reasons for “baby boomers” to extend their work life. The Center for Retirement Research reports that this is often tied to financial obligations such as remaining mortgage payments, children’s college tuition, debt, or inadequate retirement savings. In my work as a vocational evaluator, I’ve seen how remaining in the workforce is tied to lifecycle changes: divorce, loss of a spouse, adult children returning home, changes in health, increased obligations to care for a family member, etc. Additional motivators are a need to decrease stress and its effects on health or a desire to transition to more flexible, rewarding work where career growth has stopped in a current occupation.
The CRR research tells us that workers in their 50s are more likely to switch jobs voluntarily. Job switching increased to 52% from 35% in the 1980s. Those who do switch are 20% more likely to be working at age 65. Late career people who involuntarily lose their jobs still face challenges in finding employment with the same income they had before. This can prompt them to retire before age 65.
About 44% of people are still working at age 65, but the majority are ready to exit the labor force by then.
To read the interview from the Center for Retirement Research at Boston College Click here.