Older U.S. employees are troubled about the security of their jobs, worried about getting laid off over the next year, and concerned they might not be able to find a similar job within a meaningful period of time, even as many are turning to gig work for extra income.
Other factors include employers who do not wish to pay the desired salary, jobs being replaced by technology, discrimination due to age, skills becoming obsolete, and there being no longer a need for the type of job they do.
Among the general population (aged 40 and above), 16 percent are supplementing their income by taking on more than one job. Among those aged 40–49, this number was at 20 percent.
Twenty-five percent of respondents also admitted that they do not have the confidence to find a new, similar job within three months if they find themselves getting fired. Among respondents who are retired or looking for work, this stood at 49 percent.
Retirement Plans
The AARP survey also found that 60 percent of the general population had reevaluated their plan for retirement or post-work life during the pandemic. This number stood at 64 percent among the 40- to 49-year-old demographic.Retirement savings plan was cited as the third important factor before accepting a job. Among 40- to 49-year-olds, saving for retirement was a major factor driving them to work, with 85 percent saying they wanted to work to become eligible for payment from a retirement plan.
A BlackRock study from July last year found that 37 percent of Americans felt unprepared or unsure about whether they are on track for retirement, with women reporting the highest lack of confidence.
Inflation was found to be the key factor for the confidence decline, with 87 percent of respondents saying that they were worried about how inflation would impact their retirement. Sixty-four percent are also concerned whether their nest egg would last their lifetime.
Inflation and Wages, Returning Back to Work From Retirement
Inflation has had a deeply negative impact on both current workers and retirees. A FinanceBuzz survey from December showed that only 37 percent of people felt that their salaries kept up with inflation, while 41 percent thought they were being underpaid.The survey of 1,250 people also found that 15 percent quit their jobs because they were making less money compared to their coworkers.
Among those who have such plans, 69 percent said their decision was motivated due to the rising cost of living, while 12.5 percent wanted to help pay off the medical debt accumulated during the pandemic.
Forty-four percent of those planning to come out of retirement are “somewhat concerned” about the state of their finances, while 39 percent admitted to being “highly concerned.”