The Aging American Workplace and Economic Crisis

September 21st, 2009 · No Comments

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Although the financial crisis has hit Americans of every age group, a recent University of Michigan study reveals older Americans are weathering the crisis relatively well. Many more seniors expect to work longer than they had originally planned, but they are proving to be happier in the work that they do as compared to those of the younger generations.

The study clearly shows the change in work expectations from just a year ago. People have definitely changed their plans to retire early due to the financial crisis. They realize they will need to work farther into the future to secure their financial stability.

Other findings on the survey revealed declining home values have affected nearly a quarter of the seniors, while less than half hold mortgages on their home. Another seven percent say their home is “under water,” meaning they owe more on their home than it is worth. Around three percent of those have fallen behind in their payments.

The crisis is also taking an emotional and psychological toll on seniors with approximately 53 percent reporting no symptoms of depression prior to the crises, but now the number has dropped to 44 percent. Therefore, 56 percent suffer from restless sleep, sadness, and the feeling that everything is more of an effort than they can handle.

Those feeling clinically depressed has increased from 11 percent prior to the crisis to 18 percent afterwards. It is obvious the pressure produced by the current financial crisis has had an impact on the mental health status of older Americans. Unfortunately, emotional and mental health eventually has an impact on physical health as well.

In related news, Pew Research Center recently announced findings that show from 2006 to 2016, in America, 93 percent of the growth in the labor market will be among workers aged 55 and older. Due to the economic crisis, aging Americans are staying in the work place longer. One reason for these findings is the attitude aging Americans have regarding working well into their later years of life.

Many seniors who feel healthy and enjoy their work do not feel ready to retire at age 65 or earlier. They prefer to stay active and realize that if they retire too soon they may fall into a sedentary lifestyle. They want to feel needed, and their worth is associated with their career or job.

The irony of the current economic crises is that it is keeping the older workers working and the younger workers out of the workforce due to lack of jobs. Among those who are working past the popular retirement age of 62 reveal they are delaying their retirement due to the recession.