Early boomers, those born between 1946 and 1955 number 36 million, according to a report from MetLife Mature Market Institute released Thursday. Over the next 10 years, early boomers will increase the percentage of people between 65 and 74 by 50%, the largest increase in 50 years. MetLife studied a preview of 2010 Census data for the report.
As these boomers age, the percentage of workers over 65 will increase. Sixty percent of men between 60 and 64 are currently working white-collar jobs, compared with 54% of men between 55 and 59. One-quarter of women between 60 and 64 work a white-collar job, and 76% of women between 55 and 59 do.
Over one-third of early boomer men are college graduates and are therefore more likely to continue working after 65. Thirty percent of women are college graduates. Furthermore, the 60-64 age cohort is more educated than any younger cohort.
The study authors hypothesize that Vietnam may have had something to do with the high level of education among the older cohort: "40 years ago going to college and staying there was one way to avoid being drafted into the Armed Forces and potentially sent to Vietnam." Further evidence that the war was a compelling reason to stay in school is that after the end of the draft, the college education rate for men under 55 fell to between 29% and 32%.
The higher education rate will affect the workplace, as higher educated cohorts are more likely to continue working after 65 than cohorts without college degrees. Almost half of men between 65 and 74 with a college degree were in the paid labor force, compared with just 30% of men without a degree. One-third of women with a degree continued to work, compared with 22% of those without a degree.
As the number of highly educated people over 65 increases over the next 10 years, the authors write, it's more likely they will try to stay in the work force.
There are currently 1.3 million more early boomer women than men, and by 2020 that gap will widen to 2 million more women than men. In 2020, one-third of older households will be headed by a woman, compared with 26% of households currently headed by women between 55 and 64 years old.
This will likely change the gender makeup of the work force, the survey found, as women between 65 and 74 make up 45% of workers in that cohort. The survey authors estimate that could rise to 50% or higher.
Despite being the minority, though, early boomer men are likely to make up about 45% of the work force in 2020. The median annual income for men between 65 and 74 in 2009 was $51,000; over 25% made more than $75,000 and 20% made more than $100,000. With these high-income jobs frequently come non-monetary benefits, according to the report, making early boomer men more likely to continue working, even if they don't need the money.
Furthermore, a study released Thursday by The Hartford found those in their 60s view a significant health problem as a greater risk in retirement than running out of money. Respondents in their 70s were more likely to say running out of money was their biggest concern, followed by inflation and losing money in the market.
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