Surging Stock Market Encourages Older Americans to Retire Early
A booming stock market is giving some Baby Boomers and Gen Xers the financial confidence to leave the workforce, with labor participation among those 55 and older dropping to 36.9% in July.
The stock market rally appears to be pushing more older Americans into retirement. According to Fortune, rising equity values are giving many Baby Boomers and Generation X workers enough financial security to exit the labor force.
Labor-force participation among people aged 55 and older fell to 36.9% in July, down from 37.9% in December. Economists attribute the decline partly to a “wealth effect,” where swelling investment portfolios make continued work less necessary.
The trend could further tighten the U.S. labor supply as the population ages and more workers opt for retirement.
Source: First Squawk