{"id":222169,"date":"2024-04-09T19:54:27","date_gmt":"2024-04-09T19:54:27","guid":{"rendered":"https:\/\/michigandigitalnews.com\/index.php\/2024\/04\/09\/america-is-debating-whether-to-raise-the-retirement-age-but-boomers-are-already-working-well-into-their-sixties-and-seventies\/"},"modified":"2025-06-25T17:18:57","modified_gmt":"2025-06-25T17:18:57","slug":"america-is-debating-whether-to-raise-the-retirement-age-but-boomers-are-already-working-well-into-their-sixties-and-seventies","status":"publish","type":"post","link":"https:\/\/michigandigitalnews.com\/index.php\/2024\/04\/09\/america-is-debating-whether-to-raise-the-retirement-age-but-boomers-are-already-working-well-into-their-sixties-and-seventies\/","title":{"rendered":"America is debating whether to raise the retirement age\u2013but boomers are already working well into their sixties and seventies"},"content":{"rendered":"

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Baby boomers, a large and influential cohort that was only recently surpassed by millennials in terms of size<\/a>, started retiring in 2011. They started working around 1962\u2013and a lot has changed since then.<\/p>\n

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As baby boomers reach what was <\/em>traditionally considered retirement age, they\u2019re encountering a landscape transformed by economic, health, and societal shifts. This generation now faces retirement decisions influenced not only by personal desires but also by those very shifts.\u00a0<\/p>\n

That\u2019s not to say that the \u201celder statesmen\u201d of today\u2019s generational landscape are simply passive subjects to these changes\u2013boomers are increasingly reconsidering what retirement means<\/a>, and more importantly, what it could mean.<\/p>\n

Instead of viewing retirement as the end of active engagement, many seek opportunities to remain productive<\/a>, whether that\u2019s through continued employment, various investment opportunities<\/a>, or unconventional retirement lifestyles.\u00a0<\/p>\n

These are significant changes\u2013and they won\u2019t be limited in scope to boomers. What\u2019s becoming the new normal now will have deep, far-reaching consequences on Gen X<\/a>, Millennials, Gen Z, and Gen Alpha.<\/p>\n

The new retirement age<\/h2>\n

Pew Research Center data illustrates a significant increase in the percentage of Americans over 65 who are still employed, nearly doubling in the past 35 years<\/a>. This shift reflects broader economic and social changes, including the erosion of traditional pension plans<\/a> and the rising cost of living<\/a>, which compel many to extend their careers.\u00a0<\/p>\n

Even though the U.S. government states that the current full retirement age is 67, the real situation is a tad bit different. There have been various attempts to raise the full retirement age up to 70<\/a>. This isn\u2019t solely a U.S.-centric topic\u2013similar proposals are receiving attention from other developed economies such as the UK, indicating a much farther-reaching issue. There is an additional consideration: Even if the retirement age is not raised, boomers will likely continue to be employed in some capacity even beyond 70 years old.<\/p>\n

Additionally, the desire to remain mentally and socially active<\/a> contributes to this trend, challenging outdated notions of retirement<\/a> as a period of decline. Boomers are actively seeking roles that allow them to leverage their decades of experience while still offering flexibility and fulfillment.<\/p>\n

Financial realities and shifts in benefits<\/h2>\n

The need for financial security drives many boomers to work longer, maximizing their earnings potential and ensuring a more stable financial foundation before they reach the new retirement age.<\/p>\n

The shift from defined benefit pension plans to defined contribution plans<\/a> like 401(k)s marked a significant transformation that placed greater responsibility on individuals to manage their retirement savings, navigate the uncertainties of the stock market, and plan for a future that, at the time, implied decades of post-retirement life.\u00a0<\/p>\n

Another important point to make is that retirement benefits aren\u2019t set in stone. While Social Security and similar programs such as Medicare will see increases in the short-term<\/a>, there are two key considerations here: these increases are in no way a match for the cost of living increases<\/a> we\u2019ve seen over the past few years and significant political pressure exists within the landscape of U.S politics to cut down or even do away with these benefits<\/a>.<\/p>\n

As they adapt to these new financial realities, boomers are becoming increasingly proactive in seeking information and resources to make informed decisions about their retirement savings and investments. Perhaps surprisingly, 46.9% of Boomers trust generative AI<\/a> enough to ask it for financial advice, with a whopping 90% willing to use online tools for property purchases<\/a>\u2014both points forming a salient point against the cliche argument that Boomers are necessarily tech-averse.<\/p>\n

The challenges facing retired boomers<\/h2>\n

Retired boomers face a range of challenges, from economic hardships exacerbated by the 2008 financial crisis to difficulties re-entering a job market that often favors younger workers.\u00a0<\/p>\n

The doubling of housing prices between 1998 and 2021<\/a>, as well as the lack of adequate savings, has left some struggling to secure a stable financial future.\u00a0<\/p>\n

Additionally, ageism in the workforce<\/a> and the rapid pace of technological change present barriers to employment, underscoring the need for targeted support and policies to help older workers remain competitive and financially secure.\u00a0<\/p>\n

Organizations and policymakers are thus challenged to create environments that not only respect but also capitalize on the vast experience and wisdom that older workers bring to the table.<\/p>\n

Redefining retirement for the 21st century<\/h2>\n

The baby boomer generation is at the forefront of redefining retirement, blending financial pragmatism with a quest for meaningful engagement. Merely by challenging traditional retirement norms and exploring new lifestyles, boomers are setting new precedents for aging and work.\u00a0<\/p>\n

This shift requires not only individual adaptability but also societal support to address the unique challenges and opportunities of retirement today. Whether it\u2019s alternative work arrangements, unorthodox lifestyles<\/a>, or harnessing the power of AI, the boomers of the 2020s are faced with a multitude of trials and tribulations, but at the same time, they have copious amounts of tools and aids at their disposal.<\/p>\n

Tim Fries is a financial analyst, writer, and co-founder of<\/em> The Tokenist, a digital platform that covers news, insights, and analysis related to cryptocurrency, blockchain technology, and financial markets.<\/em><\/p>\n

More must-read\u00a0commentary\u00a0published by\u00a0Fortune<\/em>:<\/h2>\n