COVID Could Lead Many Older Workers Into Early Retirement -- Not Necessarily by Choice

A study from the Schwartz Center for Economic Policy Analysis at the New School estimated that almost 3 million workers between ages 55 and 70 have exited the workforce since March, reports the Business Journals ' BizWomen publication. As a result of the COVID-19 pandemic, older Americans have less time to recover financially than younger generations. The authors said health risks linked to working during the pandemic and fewer job prospects make involuntary retirement more likely. Women and workers of color have been hit hardest, as the lockdowns have been especially damaging to industries that employ more older non-white and women workers. Non-white women suffered the most, with 19.5 percent losing jobs, 7.7 percent becoming unemployed, and 11.8 percent leaving the labor force. The Schwartz Center added that it can take older workers almost twice as long as younger employees to find a new job, usually for lower salaries than previously. "If they return to work, they risk getting seriously ill due to COVID, but if they stay home, they may forfeit their earnings," said the Kaiser Family Foundation's Tricia Neuman. "For older workers who were hoping to work long enough to collect full Social Security benefits, the decision to stay home could have lifetime financial consequences."