Older Americans who work spend differently, study shows
Filed under: Economy, People, Healthcare, Amazon.com, Inc.
There's a popular notion that many older Americans choose to work because they have little other choice. Unable to afford retirement or health care, so the belief goes, those in their 60s, 70s -- and sometimes beyond, stay on the job to pay bills.A new study by University of Missouri researchers debunks that myth, showing that older workers aren't necessarily working out of necessity. Further, data revealed older Americans who work showed different spending patterns compared to those of non-workers.
Using 2005 Census Bureau data, university researchers compared the financial budgets and expenditures of people ages 55-74 in working and retired households.
They found that older workers spend more money on transportation, eating out, education and insurance, while their non-working counterparts spend greater amounts on health care, cash contributions, food and housing. Older workers also had lower out-of-pocket costs for health expenses, the results showed.
"Older workers spend less on necessities, including food and housing, which implies they aren't working out of need," says associate professor Deanna Sharpe, co-author of the study, titled Spending Patterns of Older Workers. "They also are spending less on health care, which may indicate that workers are somewhat healthier than non-workers."
While need may not be the driving factor for many older workers to stay on the job, Sharpe says, strains caused by the current downturn in financial markets could force some older workers to remain in the labor market to finance their retirement.
Sharpe says that baby boomers, the eldest of whom turn 63 this year, will face increased responsibility for their financial futures as employers shift increasingly to defined contribution retirement plans, such as 401(k)s, from defined benefit pension plans.
University of Missouri researchers plan to continue to study the impact the changing economy is having on the nation's older working population, which is predicted to increase by more than 80 percent by 2016.
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Reader Comments (Page 1 of 1)
10-22-2009 @ 11:06AM
John said...
Your caption of a hunched over cane holding 60-70 year old represents the typical stereotype of those of us in the age group. Recently a group of us "giesers" took part in a 4 day Pittsburgh art trip requiring many steps, much walking, and many uphill terrains especially around Frank Lloyd Wright's house. Out of the 25 of us only one required a cane due to an accident. When it came to stairs or elevators most chose the stairs with as many as 4 flights. There were also some 80 year olds in the group. Sorry, but your sampling photo is way off the mark.
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10-22-2009 @ 12:52PM
Greg said...
"They also are spending less on health care, which may indicate that workers are somewhat healthier than non-workers."
This sounds like a statement of the perceived good of continued working--those who continue stay healthier. Could be, could be. On the other hand, it could indicate that many older individuals who discontinue working do so for reasons associated with poor health. It would have helped had the research treated that question.
My own experience with former workmates who continued working is that some continue working because they have no other outlet for their time, no other interests or avocations; some have sufficient means to quit but are inhibited by uncertainty and fear that they don't; some really can't live a reasonable life above poverty if they don't continue; some desire to increase their net worth for the sake of watching their balances grow.; some have specialized talents that they use to help othere (e.g. doctors without borders).
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10-23-2009 @ 3:16PM
otrpu said...
A crock of crap in my case. I'm 66 and working cause I've had every debt I owe's interest increase, every bill I pay increase. Take a look at your cell phone bill. Damn thing goes up every month by a few cents. Government tax cash cow. CC payment increased from $70 a monyh yo $270 a month. Then wifey gets her hourly rate cut 25%. CHASE BANK won't give me a loan modification. I sent all required paperwork twice, they keep calling and saying they didn't get it. I've fax confirmations. Sounds like they want my home cheap. Wifey has no medical insurance and mine keeps going up every year. I shouldn't even be in the work force taking two jobs kids need to raise families on. What a mess all the crooks, private & government have made of things after working all my life since 12 years old.
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