Bureau of Labor Statistics data shows that 3.8% of today’s U.S. workforce is 65 or older. That’s the same percentage of workforce as the 35-44 demographic.
All totaled, 19.3% of seniors are still working full or part-time. That includes:
- 32.2% of those age 65-69
- 19.2% of those age 70-74
Not surprisingly, many seniors are also delaying enrollment in Medicare products to well past age 65. There may be a number of reasons for this:
- The economic collapse of 2008 took a big toll on their retirement accounts. According to the Urban Institute, retirement accounts lost $2.7 trillion in the last two quarters of 2008 and the first quarter of 2009.
- Some seniors may be waiting for a spouse to retire so they can enroll in Medicare together. On average, there is a 2.3-year age gap among American married couples, and that number may be higher for today’s seniors.
- Some of those seniors working full-time today may prefer the coverage and cost of their employer-sponsored health plan.
This trend impacts both government Medicare spending and private Medicare Advantage and Medicare Supplement issuers. Michael Best Strategies will continue to track trends for implications and impacts.