Trends in Retirement Plans

INTRODUCTION

Retirement is not what it used to be. It was once common for Americans to retire by the age of 65. However, in more recent times, many baby boomers have indicated a desire to delay retirement.

The reasons for postponing retirement vary, but include:

• increased longevity and health
• a search for purpose
• the association of work with freedom
• financial instability
• boredom

According to a Pew Research study, in 2020, Boomer retirements have accelerated, increasing by 2 million workers over 2019. COVID-19 risks and the pandemic recession undoubtedly played a role, but even post-pandemic, boomer retirements are on the rise, an indication that what has been termed the “silver tsunami” may be under way. Today, 11,000 Americans reach age 65 every day. However, data from the Bureau of Labor Statistics projects that there will be an increase in labor force participation of older workers until 2032, perhaps anticipating that some older workers will remain in the workforce beyond their expected retirement, and some early retirees will need to return to work. With a projected shortage of skilled workers in the coming years, employers will need to find ways to keep older workers on the job.