Not that the world needs more fuel for the recent string of intergenerational feuds, but a new report suggests that young professionals are having a harder time moving up in the workplace due to fewer people retiring.
With more Americans choosing to work longer, the traditional workforce model is being upended, according to a new survey from TD Ameritrade.
The survey, based on responses from 2,000 adults, found that the majority of Americans now plan to work beyond a traditional retirement age and 1 in 3 respondents said they plan to work at least a part time job in retirement.
About 40% of respondents in their 40s and 50s said they will continue working in retirement even if there isn’t a financial need to do so, the survey found.
“Gone are the days of retirement being seen as an essential, defined life stage, where an employee could expect to work for a company long-term and be taken care of after retiring,” said Christine Russell, senior manager of retirement and annuities at TD Ameritrade.
However, baby boomers staying in the workforce longer may mean that younger generations may have fewer opportunities to climb the ladder and acquire the financial gains that tend to come with that.
About 15% of baby boomers, ages 54-74, still work full time, while they are joined in the workforce by the three generations that succeed them: Gen X, millennials and Gen Z, according to USA Today.
“This is the first time ever that five different generations are in America’s workforce at the same time, from Gen Zers up to baby boomers. It’s no surprise that there are some growing pains,” LinkedIn career expert Blair Decembrele told the newspaper.
According to the new report, not retiring has more to do with financial concerns — although that is certainly part of it. Lifespans have gotten longer, which means it costs more to be retired.
But the unretired trend also has to do with a sense of purpose, preventing boredom and avoiding depression.
Among those surveyed who had retired, about 30% said they felt like they lost their identity after they were done working.
“The concept of retirement is evolving,” Russell said. “It’s not just about finances. The value of work is also driving folks to continue working past retirement.”