Change: Older Workers Put Off Retirement Due To Obama Economy


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A new survey of older workers shows that more and more of them plan to put off retirement thanks to the Obama economy.

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The Wall Street Journal has details of the survey released by the Conference Board which found that over 60% of the 15,000 respondents said they will delay retirement due to economic issues.

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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. …

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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.

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But the stark increase in workers expecting to stay on the job—now 62%—was a surprise, Mr. Levanon said. After all, the stock market has largely earned back its losses, home prices are rising, and the unemployment rate is creeping down, all of which suggests workers should be feeling more secure.

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Many middle-aged Americans, though, drew down their savings during those lean years and now find that leaving the work force on their original timeline is no longer viable, he said.

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They are also facing low interest rates, an uncertain future for Social Security, and a lower likelihood of receiving employer health insurance after retirement. (Read More)

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This might be good news for some employers who will enjoy lower turnover rates and and an experienced workforce, but it’s bad news for the younger generations who are already facing a tough labor market.

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