An increasing number of American retirees are returning to work, finds new research
Almost 40% of US workers over the age of 65 have previously retired from work, reports the global policy think tank, RAND Corporation. Additionally, over 80% of workers over 65 in the US are unemployed but looking for work.
When participants in the research were asked whether they would consider returning to paid employment in the future, being currently out of the labor force, 56% responded that they would.
Furthermore, new analysis of research published by the Bureau of Labor Statistics similarly shows a 6% increase in the number of American workers aged over 65 and employed, in either full-time or part-time work, since 2000.
The research highlights therefore, the increasingly fluid nature of retirement. “There’s less of the traditional schedule: work at a certain age, retire, see the world. We see people lengthening their careers,” Kathleen Mullen, a senior economist at RAND says.
According to the report, the reason behind retirees returning to work is related, not to financial problems or uncertainty and therefore a financial need to return to work, but to a desire for social engagement and therefore simply out of choice.
Indeed, older jobseekers “think about broader things, like whether the work is meaningful and stimulating,” Mullen says. Correspondingly, IZA World of Labor author, Carol Graham writes on the positive correlation between late-life work and well-being, as “workers who remain in the labor force after retirement age are more satisfied with their health and are happier than their retired counterparts.”
The research reports that returning to work can also be challenging however, as older employees can experience less support from their management and even cooperation from colleagues. The positives of returning to work may outweigh the negatives however as Andreas Kuhn argues in his IZA World of Labor article on the complex effects of retirement on health.
“Retirement offers the opportunity to give up potentially risky, unhealthy, and/or stressful work,” but returning to work can counteract the negative effects that retirees suffer “from the loss of daily routines, physical and/or mental activity, a sense of identity and purpose, and social interactions,” writes Kuhn.
Read more of our articles on the aging workforce and pensions reform.
For specific expertise on retirement and late-life work get in touch directly with Carol Graham and Andreas Kuhn.