#385
Choose Life
Published:
May 01, 2021
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A year of Zoom calls and virtual interaction, coupled with an uncomfortable proximity to the Grim Reaper, has put life in perspective for many Americans. Government data reveals that about 2.7m Americans age 55 or older are contemplating retirement years earlier than they’d imagined because of the pandemic. The demographic distribution is not uniform, as expected. Those that have accumulated sufficient wealth to make this decision tend to be white, and many cite robust retirement accounts and Covid-19 fatigue for their early exit.
The consequences of this decision making are concerning for the labor market. After all, early retirement can deprive the workforce of productive workers. Today, many in the restaurant industry are unable to fill roles - some even resorting to signing bonuses to recruit talent. Federal Reserve Chairman Jerome Powell this week cited a “significant number" of people saying they've retired as one reason companies are reporting labor shortages, although it's unclear if they'll eventually rejoin the job market.
What this might mean for socioeconomic inequality is also concerning. A survey by the National Institute on Retirement Security (NIRS) found that about half of Americans are now more concerned about their retirement security in light of the Covid-19 pandemic and are considering the possibility of working longer. Much like how the tech-enabled elite were able to work from home as the shift to digital unfolded a year ago, while those with more modest incomes had to go out and risk their health for the sake of their livelihood – it seems like retirement prospects risk exacerbating the gap further.
Regardless of these dynamics, the “life-is-short” attitude seems to be gaining popularity across age groups and socioeconomic profiles - and the recent stimulus checks have certainly helped those with less of a cushion. Everyone is fed up with sitting at home, vaccines have become widely accessible in the US, and the arrival of summer is quickly approaching. The idea of returning to the grind is not exactly appealing either, so the idea of “Choosing Life” (without the drugs) is catching on!
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Choose Life
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Four ways Covid-19 has changed retirement - A survey by the National Institute on Retirement Security (NIRS) found that about half of Americans are now more concerned about their retirement security in light of the Covid-19 pandemic and are considering the possibility of working longer. Read more
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