A re-post from a few years ago -
I have always been interested in the history of the idea of retirement. Not interested because it is something I want to do (I could financially do it today if I wanted to), but interested in why an intact, healthy person would not want to fully participate in society by being a productive member.
My Grandpa worked until he was felled by a stroke at 86, and my Dad worked until macular degeneration made him incapable of driving around age 76.
Private pensions (especially from the railroads) began in the late 1800s but it wasn't until the New Deal and Social Security that the option to be put to pasture became widely available. Roosevelt was, of course, highly motivated to remove workers from the labor force in an effort to reduce unemployment, and that was the main impetus for Social Security.
In 1900, 65% of men over 65 worked. By 2000, it was 17%. Of course, nowadays many jobs build in forced retirement. I saw some stats somewhere that about 40% of retired men return to some form of paid work within three years of retirement, but I don't recall the source.
A feature piece at CNN, Rethinking Retirement: More Boomers Chosing to Work doesn't offer stats, but does give credit to the phenomenon. A quote from the piece:
Although some employees sitting in cubicles may long for the end to their work lives, sun-drenched days with tee-times, knitting and visiting the grandchildren, Howard Stone said retirees shouldn't retire, at least in the traditional sense of the word.
"Those who say 'I'll never work again' are making a major, major mistake. Because they're going to find themselves adrift, away from a community purpose and a sense," he said.
I found a good piece, with lots of numbers, on the economic history of retirement in the US. It begins:
One of the most striking changes in the American labor market over the twentieth century has been the virtual disappearance of older men from the labor force. Moen (1987) and Costa (1998) estimate that the labor force participation rate of men age 65 and older declined from 78 percent in 1880 to less than 20 percent in 1990 (see Table 1). In recent decades, the labor force participation rate of somewhat younger men (age 55-64) has been declining as well. When coupled with the increase in life expectancy over this period, it is clear that men today can expect to spend a much larger proportion of their lives in retirement, relative to men living a century ago.
You can read the whole thing here.
Comment from Dr. Bliss: Excellent subject. A few random thoughts:
- I think many folks want to be able to retire. Many enjoy their jobs much more once they have the financial freedom to quit.
- People I have talked to who have retired young, such as cops with full pensions at age 45, and Wall Streeters who walk away with bags of money around the same age, almost always take on a second career of some sort.
- Psychologically, being retired can feel like being unemployed or sent out to pasture. When people retire in their 50s or early-mid 60s, a workplace loses their experienced wise ones who have "seen it all before", and the experienced wise ones feel useless.
- A comment about people who "hate their jobs." People love to bitch about their jobs. But without the job, they lose a lot of human contact, a structured place to use their brains or abilities, and a role in the world.
- Hedonistic retirement: The idea of the fun and sun and travel retirement has been sold hard to the middle class over the past 30 years. From what I have seen, it isn't all it's cracked up to be. A vacation can be a refreshing change of pace and change of senery, but an endless vacation can be like a meal made of all dessert courses: cloying and unnutritious.
- People who do not return to work after retirement, but who jump into unpaid labors of love, like community service projects, local politics, working for charities, churches, and non-profits, often seem to feel a good sense of satisfaction in "giving back."
- "Meaningful work." I hate that expression. All work is useful and contributes to society, whether it is raising one's kids, milking the cows, flipping burgers, or selling bonds. People who use that expression should think hard about what they mean by it. Furthermore, folks who want their work to provide them with meaning may be barking up the wrong tree.
