How Working in Your 70s and 80s Might Be a Good Thing

If you’re age 40 or 50, you may begin to hear the concept of “multistage life” replacing “retirement”. Let’s face it, with rapidly increasing life expectancy rates, retiring near age-65 could become an old school notion.

Look at what’s happening today in the U.S. labor force. Between now and 2030, only one age group in the U.S. is projected to see any growth in the labor force. If you guessed age 75-and-older, you also know that the growth is actually more of an explosion. In a matter of years, the number of workers over age 75 will double. By 2030, one-in-10 people working will be 75 and older.

Boomers Hit the “Pause Button”

What’s going on? First, the number of ‘boomers’ age 65 or older will increase rapidly over the next 10-20 years. Helping them live longer are advances in healthcare, physical activity, and eating right. However, hitting age 65 raises some daunting questions. Is living off a fixed income for 20 or even 40 years realistic? Do I really want to sit in a coffee shop every morning watching other people go to work? Many people will continue working into their 70s and 80s because they need the money. More will continue working because they thrive on being engaged.

Welcome to the “Multi-stage Life”

Working later requires a big shift in how we think about work. Until now, our working lives have been based on three-stages: education, employment, and retirement. But, working into our 70s and 80s likely means shifting to a different, multi-stage life. To continue working may require more flexible thinking, improving skills, acquiring new knowledge, and prioritizing health and well-being. You may follow multiple work paths, take more time out for learning and set more time aside for pursuing new interests.

The Challenges of Working Later

Many older Americans who would like to work later in life may find a difficult path. Despite federal law that prohibits discriminating against workers 40 an over, age bias is all too common in the workplace, making it hard to find a good job. Nearly 80% of older employees say they’ve seen or experienced age discrimination. Other older workers may fall ill or become disabled and unable to work as much as they need.

Work Longer, Live Longer?

There’s increasing evidence working beyond age 65 is linked to better health and longevity. The CDC has suggested that people who work past age 65 were about three times more likely to report being in good health than those who retire. There are exceptions, of course, and some jobs that are stressful or physically demanding can increase health risks. Other studies have linked working later with reduced risk of dementia, giving some weight to “use or lose it” for cognitive health.

Some Caution If You’re Turning 40 or 50

A recent Harvard article drew attention to the data that people turning 40 or 50 now are actually in worse health than people 10 and 20 years older. The implications are that thanks to medical advances they may live longer, but many of those years will be spent in poor health – experiencing diabetes, obesity, and cardiovascular disease. More workers in their 50s are becoming disabled and many will see their earnings steeply decline. For employers it’s increasingly important to make sure their employees have good disability insurance coverage.

Is 90 the New Old?

A baby born today in the U.S. has a 50% likelihood of living past 100. That kind of statistic can make an actuary’s head spin. However, everything points to the probability that in a few more years, 90 will be the new 40. And very likely, those who live into their 90s will feel like they are in their 40s. More of that will be due to healthy habits rather than DNA. Looking ahead as people continue to work, have purpose, and cultivate friendships, this blog may need to be updated to start with “Working In Your 90s.”