Older Americans must stay in workforce
by Chris Woodward
September 12, 2012
Pamela Villarreal, senior fellow for the National Center for Policy Analysis, says there are some companies that actually try to maintain their older workforce as older employees have a greater level of experience.
She adds that even though many people associate older workers with higher health care costs, older workers tend to be more reliable and show up for work every day. Some of them have even become self-employed, using their skills as consultants rather than try and re-enter the corporate world after losing their jobs. However, that is not always the case, as Villarreal points out.
"For those who still have a job, they're trying to stay in the labor force as long as they can until they're prepared for retirement," she explains.
Should that serve as a warning for younger Americans to prepare for retirement now, rather than later?
"Absolutely," Villarreal says. "In fact, I've been analyzing some data on soon-to-be retirees, say in the age 55-to 64-year-old age group. Many of them are still carrying mortgages. They carry those mortgages into retirement. They're making higher house payments, probably because of the low interest rates that we've had for so long. They buy too much house."
Villarreal says it is a problem that extends down to people in their early 40s.