Unlike in other developed countries, retirement isn’t necessarily a permanent shift in the U.S. Before Covid, it wasn’t uncommon that Americans would “un-retire,” out of financial hardship or personal choice. It’s too early to tell whether the pandemic has changed that dynamic permanently or not.
The Social Security Administration’s Office of the Chief Actuary suggested older people may have “retired” from one job and continued working in another. That would explain why they’re not applying for benefits.
And people under 62 wouldn’t qualify for Social Security anyway. Among them is Hope Cabot, 61, who left her teaching job in Roswell, Georgia, in December. The stress of caring for a mother and of having to teach virtually pushed her to retire sooner than she anticipated. She plans to be a substitute teacher to stay busy and bring in some extra cash to help keep up with high inflation, she said.
“During the pandemic, it was crazy,” she said. “I was not planning on retiring until the end of this year or the end of next year.”
So far Bureau of Labor Statistics data on labor participation show that some baby boomers have come back, while many are remaining on the sidelines.
It’s possible that Covid-19 has led to a reckoning for a generation that reached retirement age when a global pandemic hit their age group disproportionally and threatened life as we knew it. It makes it even more difficult to predict if and when they might look for a job again.
“Just as is the case with younger workers who have seen opportunities to think differently about their lives, people in this demographic are thinking, ‘What do I really want to do with my life,’” said Doug Dickson, who chairs the Encore Boston Network, which helps older workers find a job or volunteer opportunities. “Are they really retired or are they just defaulting to that language because it’s the easiest way to characterize it?”
This article was provided by Bloomberg News.