The aspiration of early retirement seems to have been finally put to bed as an unachievable dream for all but the very wealthy, claims a new study.
In a world with a changed economic outlook, Gary Burtless and Barry Bosworth of the US Brookings Institution think tank argue early retirement seems the obvious option for the over 50s displaced from the workplace by the recession.
But they argue the opposite seems to be reality as older workers realise they have insufficient savings and financial resources to give up work for good.
The team looked at the financial affairs of over 60s approaching retirement in 20 industrialised nations, and found similar results across the board.
Each country reported more over 50s are either in work or seeking work than in 2007.
Trend is to work longer
In Germany, the number of 60 to 64 year olds in work surged from 33% to 47%, while in The Netherlands the figure for the same age group jumped from 30% to 44%.
The report comes to the conclusion that a smaller number of those approaching retirement are giving up work to rely on pensions and savings to fund their later years.
The report suggests that early retirement was a fad rather than a trend.
The authors argue that in 1910 in the US, more than half of men aged 73 years old were working, but by 1994, 50% aged 62 years old had retired.
Turn the clock forward to 2011 and at 64 years old only 50% of men had retired.
The study also shows the statistics for women are similar.
Factors affecting retirement
The reasons behind the ups and downs of retirement vary – from drivers like political and economic policies to improved health and a better lifestyle as the years progress.
Education is also cited as an important factor.
“Better educated people retire later in life,” says the report. “And those coming up to retirement now are much better educated than previous generations.”
“On the whole, the lengthening of working lives is a good thing, with one big caveat.
“As populations age, countries cannot afford to have increasing numbers of the elderly supported by decreasing numbers of young and middle-aged workers. Welfare states are strained to maintain the costs of care. People need to remain productive for longer.
“Now, the caveat: This transition is happening at an awful time. Without stronger economic recoveries, jobs taken by older workers contribute to the high unemployment of the young.”
