What's happened
As of September 1, 2024, an increasing number of older Americans are postponing retirement, leading to career stagnation for younger workers. This trend is driven by financial insecurity and changing workplace dynamics, affecting job mobility and earning potential for Gen Z and Millennials.
Why it matters
What the papers say
According to Axios, the trend of older Americans delaying retirement is creating a 'career ladder gridlock,' where younger workers find it difficult to advance. Jasmine Escalera, a career expert, notes that this situation can lead to increased job hopping among younger generations. Meanwhile, The Guardian highlights that nearly 1 million people aged 60 and older are self-employed, with many choosing this path for flexibility and financial necessity. Stuart Lewis from Rest Less emphasizes the diverse circumstances behind this trend, from those pursuing passion projects to those needing additional income due to the cost of living crisis. This contrast illustrates the complex motivations behind older workers' decisions to remain in the workforce.
How we got here
The trend of older Americans delaying retirement has been rising since the late 1980s. A 2023 survey indicated that 33% of workers plan to retire at age 70 or older, up from 26% in 2021. Factors include declining social security benefits and a lack of pension plans.
Common question
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Why Are Older Workers Delaying Retirement and How Does It Affect Younger Workers?
As more older Americans choose to delay retirement, the job market is shifting in ways that impact younger generations. This trend raises important questions about job opportunities, career advancement, and how younger workers can navigate these changes effectively. Below, we explore the implications of this phenomenon and provide insights for those entering the workforce.
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