“Retirement rates declined significantly during and after the great recession,” said Gad Levanon, associate director of macroeconomic research at The Conference Board. “However, we see that delayed retirement has been more prevalent for some occupations and industries. For example, the health care industry experienced the largest decline in retirement rates in recent years. Jobs in this field are also in great demand. On the other hand, there was almost no retirement delay among government workers, who are more likely to receive defined benefit pension plans.”
The construction industry also experienced a large decline in retirement rates. The Conference Board attributed this to construction workers looking to make up for lost income during the long slump in the industry.
Also, many workers in high-paying occupations have delayed retirement in order to build up the resources to maintain their standard of living in retirement, The Conference Board said. In addition, many high-paying occupations are not physically demanding, making it possible for mature workers to continue in their fields.
Those whose homes declined in value or whose portfolios fell in the recession are also more likely to continue to work, The Conference Board said.
The Conference Board said there are macroeconomic benefits from people delaying retirement, primarily that it will boost people’s income and the U.S. economy. Delaying retirement will also help many more Americans to be more adequately prepared for retirement. In addition, it will counteract the “brain drain” that is feared in many industries as Baby Boomers begin to retire.
Lee Barney writes for Money Management Executive, a SourceMedia publication
This article originally appeared in Employee Benefit News, a SourceMedia publication.