With their lower incomes, less educated workers rely more on their Social Security benefits to meet their retirement income needs -- which researchers like Rutledge might expect to increase the retirement age for employees without a college education, but in reality most early retirees come from among the less-educated portion of the workforce. Facing declining health and shorter longevity, the less educated may be making a rational choice to retire early and claim Social Security as early as possible.
The decision to raise Social Security’s full retirement age from 65 to 67 years old also encourages later retirement among healthier, wealthier college-educated workers, according to Rutledge.
The influx of women into the workforce has had a dramatic effect on retirement ages – with more women of all ages working, the average retirement age for women has steadily increased over time. As the average woman gains in labor market experience, women overall are better suited to be able to maintain their current jobs, find new opportunities and establish careers as they age.
Not only are college-educated men more likely to be married, but less-educated couples are increasingly less likely to remain married as they age. According to Rutledge the increase in female labor force participation is causing more men to delay their own retirement to a date closer to that of their spouses, who tend to be younger. Less educated men are less likely to be pressured to work longer to match the retirement date of their spouse.
Rutledge suggests that the gap in retirement age between college educated and less educated Americans, especially men, will grow over time as most of the factors that are potential drivers of the gap are worsening with time. Less educated Americans are falling farther behind in health care, well-paying jobs without education requirements are being automated or otherwise disrupted, the gap in Social Security claiming ages continues to grow and less educated workers, men especially, over time become less desirable as spouses or mates.
“Unless these factors reverse, and without a stronger response to insufficient retirement saving, the less-educated are likely to continue retiring too early,” wrote Rutledge. “In that event, they will face lower living standards in retirement and greater reliance on programs targeted at retirees with low incomes, such as Supplemental Security Income.”