The Workforce Is Growing Older As The Population Ages

The workforce is growing older as the population ages. The elderly in this generation are living significantly longer. The amount of older workers is increasing due to the baby boomer generation. â€Å"The number of older workers over 55 is projected to grow at nearly four times the rate of the overall labor force† (Shultz, pg.7) Many older workers are choosing to stay in the workforce. An increasing amount of older workers are choosing to prolong retirement. Population aging will significantly increase the amount of older workers. â€Å"Between 1977 and 2007, employment of workers 65 and over increased 101 percent, compared to a much smaller increase of 59 percent for total employment (16 and over). The number of employed men 65 and over rose 75†¦show more content†¦Ã¢â‚¬Å"The number of workers between the ages of 65 and 74 and those aged 75 and up are predicted to soar by more than 80 percent. By 2016, workers age 65 and over are expected to account for 6.1 percent of the total labor force, up sharply from their 2006 share of 3.6 percent† (U.S Bureau of Labor Statistics, 2008). The majority of older adults remain in the workforce due to the economic downturn and not being able to afford retirement. Older adults continue to work in order to gain financial stability. Many workers age 65 and older are unprepared for retirement. Older workers are working longer due to the decrease in financial assets, low interest rates, shift to 401(k) s, higher social security retirement age, and longevity. There has been a significant decrease in the value of retirement assets. â€Å"With the shift away from defined benefit and towards defined contribution pensions like 401(k)s, changes in financial markets have a more direct effect on many workers’ retirement savings† (Orszag, 2009). Financial assets have lost value because of the financial crisis. Many older adults lost a large amount of their financial assets because they withdrew funds from their financial accounts in order to survive the financial crisis. â€Å"Some 62 percent of people between ages 45 and 60 experienced at least a 20 percent decline in the value of their financial assets since the beginning of the crisis, compared with only 42 percent in 2010, according to the Conference Board