More workers nearing retirement are delaying the event

New research reveals that more Americans 55 and older have opted to put off retirement in part due to higher health care costs and losses to their retirement nest eggs, according to a study by the nonpartisan Employee Benefit Research Institute (EBRI). In addition, many indicate they want to keep working just to keep busy.

The study shows that the percentage of workers who expect to retire after age 65 has increased from 11 percent in 1991 to 33 percent in 2010. For those ages 55 to 64 (the “near elderly”), the increase is being driven almost totally by women remaining in the workforce. The male participation rate is flat to declining. However, among those age 65 and older (the elderly), labor-force participation is increasing for both men and women.

According to the study, workers have greater incentives to stay in the workforce, such as the ability (and in some cases the need) to continue to accumulate assets in retirement plans and to have access to employment-based health insurance coverage, instead of having to tap into their savings to pay for their expenses.

The study, based on U.S. Census Bureau data, includes these additional points:

• The percentage of civilian Americans age 55 and older in the labor force has steadily increased since 1993.
• Education is a strong factor in an individual’s participation in the labor force at older ages. Those with high levels of education are significantly more likely to remain in the labor force longer than those with low levels of education.
• The upward trend among the working near elderly and elderly is likely to continue because of workers’ need for access to employment-based health insurance and for more earning years to accumulate assets in defined contribution plans.

While older Americans have a greater need to work to help make their retirement assets last longer or to continue to build up assets, monetary incentives are not the only motivating factor. Many Americans have expressed an increased desire to work longer, particularly those with more education, who might more easily find meaningful jobs that can be done well into older ages, EBRI found.

Another research study focusing on the education profession indicates that teachers are definitely among those delaying their plans to retire. The 2009 MetLife Survey of the American Teacher  revealed that most teachers see their commitment to education extending beyond traditional retirement. Three quarters (75 percent) agree that they would like to continue to work in education beyond traditional retirement as, for example, a teacher mentor, administrator, tutor, etc. Teachers in schools with higher levels of collaborative activities are more likely than those in schools with lower collaboration to be interested in continuing to work in education beyond traditional retirement (81 percent vs. 72 percent). Teachers who are very satisfied with teaching as a profession are also more likely than others to be interested in working in education after retirement (82 percent versus 66 percent). The nationwide survey included responses from 1,003 K-12 public school teachers.

—“Americans Delay Retirement for Benefits and Busyness,” by Stephen Miller, Society for Human Resource Management Web site, March 4, 2010.