Wednesday, August 8, 2007

More Americans Age 55 and Older Are Working Full Time

An increasing percentage of older Americans are in the labor force, likely because of the need to obtain affordable employment-based health insurance, according to this article by the Employee Benefit Research Institute.

These trends mark a significant change in behavior for individuals age 55 and older, the article says, and are likely driven by their need to obtain affordable employment-based health insurance (as opposed to unaffordable or unavailable coverage in the individual market) and the need to continue to accumulate savings in employment-based defined contribution retirement plans.

Both trends of increased labor force participation and increased full-time, full-year work are likely to continue, since private-sector employers have been phasing out retiree health insurance for younger workers and are continuing to shift out of defined benefit pensions and into defined contribution retirement plans.