Trends in key retirement income sources, such as Social Security and employer-sponsored pensions, suggest that many older Americans will not be able to retire at traditional ages and maintain their pre-retirement standard of living. Working longer may therefore become an increasingly attractive alternative as the population ages. In response, the Center has undertaken a comprehensive assessment of workforce opportunities for an aging labor force from the perspective of both individuals and employers.

Why is Older Americans' Retirement Security So Vulnerable?

• If people continue to retire in their early 60s, they will not have enough money to comfortably support themselves in retirement.

• Social Security, the backbone of the retirement system, will not replace as much pre-retirement income in the future as it does today.

• Employer-sponsored pensions have shifted to 401(k)s and account balances tend to be modest.

• The personal saving rate remains very low.

The Solution: Work Longer.

To make up for financial shortcomings in retirement, many may decide to remain in the labor force longer since older Americans are healthier and living longer than previous generations. Greater employment of older workers may also benefit employers, who are likely to face tight labor markets as the baby boom generation begins to retire. Center researchers study the extent to which continued work may supplement other sources of income for older Americans.

The Center gratefully acknowledges our funders for their support on this research initiative.

Featured Research funded by Atlantic Philanthropies

Featured Research funded by Prudential Foundation

Featured Research funded by the Social Security Administration

Related Links

Urban Institute: Working Longer Papers
Center for Aging and Work