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Boomers Rip Up Retirement Plans

Posted Feb 01 2013 11:34am

Aging worker Nearly two-thirds of Americans between the ages of 45 and 60 say they plan to delay retirement, according to a report by the Conference Board. That was a steep jump from just two years earlier, when the group found that 42% of respondents expected to put off retirement.

The increase was driven by the financial losses, layoffs and income stagnation sustained during the last few years of recession and recovery, said Gad Levanon, director of macroeconomic research at the organization and a co-author of the report, which is based on a 2012 survey of 15,000 individuals.

The labor force has been getting older for decades for reasons that range from longer life spans and better health to companies' replacement of defined-benefit pensions with higher-risk 401(k) plans.  

But the stark increase in workers expecting to stay on the job—now 62%—was a surprise.

"Keeping older Americans in the work force is a good thing," said Kevin Cahill, an economist at the Sloan Center on Aging and Work at Boston College. "Those workers have more financial security, employers have a larger labor pool to draw from, and we have more people to produce goods and services. There may be bumps like the recent contraction in the labor market, but we need to look beyond the short term."

Source: The Wall Street Journal, February 1, 2013

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