12-11-2024
Women over 55 are working longer, according to a piece in the New York Times. Some older women continue working because they enjoy it, while others need the income. In 2023, women 55 and over made up 33.6% of labor force participation, an increase of seven percentage points from 2000 (Bureau of Labor Statistics). The percentage jump is higher for women in their 60s and 70s.
Women interviewed in the NYT piece say they want to work. Working gives them more financial independence, keeps them engaged, and provides career longevity. With longer careers, many women finally achieve leadership roles, increasing their satisfaction. Earnings for college-educated women are more likely to peak later in life than for similarly situated men. Women may spend years caring for children, which takes them out of the labor market. Per the piece, the gender pay gap for college graduates peaks between ages 50 and 54. The timing of this peak gives women an incentive to work longer.
For other older women, financial concerns drive their presence at work into their later years. The pandemic worsened these concerns, with their unemployment rate reaching above 15% in 2020. Older women face more challenges in finding new work, creating longer employment gaps, and many of these women took pay cuts for new jobs. 401(k) plans incentivize working longer to create more equity before retiring, as does Social Security’s 67-year-old floor for benefits. Women typically live longer than men but have significantly less savings, with the average woman’s retirement benefits about half the average man’s.