Is Working Longer the Solution to the Retirement Crisis?

The U.S. retirement crisis is not likely be solved by having employees work longer, according to New School Professor Teresa Ghilarducci in Forbes . This is due to endemic age discrimination, unanticipated life disruptions, and involuntary retirement. "Our data show that 52 percent of retirees retire involuntarily," Ghilarducci writes. "The advice to work longer rings hollow when employment is so insecure for older workers." People who want to work after losing their job involuntarily also can be hindered by age discrimination and bias against jobless persons. "There may be some potential benefits to working longer, such as healthy social interaction and a feeling of purpose," Ghilarducci acknowledges. "But typically it's those who are already better off who get to enjoy these benefits — think doctors, lawyers, and university professors." Ghilarducci concludes that "the work-longer debate thus creates an intractable dilemma for older workers who face difficulties in the labor market. Some are involuntarily retired, and leave the labor force 'too early.' Others who face mid- or late-career shocks . . . wonder if they can ever retire at all. "