Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Covid Early Retirees Top 3 Million in U.S., Fed Research Shows

EconomyOct 23, 2021 02:54
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

(Bloomberg) -- More than 3 million Americans retired early because of the Covid-19 crisis, new research found. That equals to more than half of the workers still missing in the labor force from pre-pandemic levels.

The estimate, calculated by St. Louis Federal Reserve economist Miguel Faria-e-Castro, suggests that the boom in early retirements shows no sign of abating. Back in April, government surveys suggested that 2.7 million Americans age 55 or older were contemplating retiring sooner than they’d imagined.

The surge in stocks and housing values during the pandemic has made it possible for young baby boomers with a nest egg to stop working.

Senior wealth increased as soon as the second quarter of 2020, as asset values quickly recovered from the initial shock of the lockdowns.

That’s especially true among the youngest baby boomers -- who technically are 57 this year. Real net worth of Americans age 55 to 64 rose by 14.2% between the fourth quarter of 2019 and the second quarter this year, Faria-e-Castro calculated.

“We’ve really met a once-in-a-generation ‘take this job and shove it’ moment,” Harvard economist Lawrence Katz said in an interview with the Harvard Gazette. “Upper-middle-class and well-off people are doing quite well with the stock market boom and have saved a lot.”

The surge in wealth and savings masks disparities that were exacerbated by the Covid-19 crisis. Older workers who lack assets missed out on the boom and can’t afford to retire early. Others who lost their jobs and haven’t been able to find a new one were forced to retire before they were ready.

In a blog post, Faria-e-Castro said it remains to be seen whether the “excess” retirements are permanent. Whether these people come back or not -- and how many if they do -- will have an outsized impact on the U.S. workforce, which is still missing more than 5 million people from pre-pandemic levels. 

©2021 Bloomberg L.P.

 

Covid Early Retirees Top 3 Million in U.S., Fed Research Shows
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email