Since the economic downturn, many experts on the academic work force have worried that professors will delay retirement (given that their investment accounts took hits), and that an already-tight job market will get even tighter. InsideHigher Ed reports that:
“A new study takes more of a long-term view, but ends up confirming those fears. Examining trends at a large private university from 1981 to 2009, the study finds faculty members are likely to take much longer to retire. And unlike the more recent studies focused on the impact of the economic downturn, this study covers time periods in which retirement accounts would have been up and down several times. The dates in the study come before and after 1993, the last year in which colleges and universities were permitted to enforce a mandatory retirement age of 70. (An abstract of the study appears here. The paper, by Sharon L. Weinberg and Marc A. Scott of New York University, is in Educational Researcher.)
“While Weinberg and Scott stress that they have studied data only for one university (and urge similar research at other institutions), they also suggest that the logic behind lifting mandatory retirement for higher education was flawed. Most other employers were barred by law in 1986 from using mandatory retirement, but colleges were given an exemption for a while, based on concerns that delays in retirement would make it difficult for colleges to hire people in emerging disciplines, and to diversify their faculties. But Weinberg and Scott note that these arguments became considerably weaker when the National Research Council issued a study in 1991 predicting that those things would not happen.
“At most colleges and universities, few tenured faculty would continue working past age 70 if mandatory retirement is eliminated,” says the NRC report.
“At the university studied, that was decidedly not the case. Among the findings were that while 11 percent of faculty members at this university during the era of mandatory retirement worked after age 70 (with special arrangements), 60 percent of faculty members now work beyond the age of 70, and 15 percent retire at the age of 80 or older.”
Read more: http://www.insidehighered.com/news/2013/08/02/new-study-shows-difficulty-encouraging-professors-retire#ixzz2axu56PPC
Inside Higher Ed
The average age at which U.S. retirees say they actually retired is now at 61, up from 57 in the early 1990s, reports Gallup today
“These results are from Gallup’s annual Economy and Personal Finance survey, conducted April 4-14. The average retirement age has crept up by four years over the past two decades, from 57 in 1991 to the current 61. Because most of the uptick came before the 2008 recession, this shift may reflect more than just a changing economy. It may also indicate changing norms about the value of work, the composition of the workforce, the decrease in jobs with mandatory retirement ages, and other factors.
“Whereas the average current retiree stopped working at age 61, those still working expect to work well beyond that age. The average nonretired American currently expects to retire at age 66, up from 60 in 1995.
“Currently, 37% of nonretired Americans say they expect to retire after age 65, 26% at age 65, and 26% before age 65. The most notable change over time is the increase in those expecting to work past age 65 — the 37% this year is up from 22% a decade ago and 14% in 1995. Meanwhile, the percentage of nonretirees who say they expect to retire before age 65 has declined to 26% from 49% in 1995.The percentage who say they will retire at exactly 65 has held fairly constant over the decades. Continue reading “Bop till you drop: Forget early retirement”
Young graduates are in debt, out of work and on their parents’ couches.
People in their 30s and 40s can’t afford to buy homes or have children.Retirees are earning nea
r-zero interest on their savings. Today’s New York times carries a sobering story about the way the economy is hitting people just under retirement age:
“In the current listless economy, every generation has a claim to having been most injured. But the Labor Department’s latest jobs snapshot and other recent data reports present a strong case for crowning baby boomers as the greatest victims of the recession and its grim aftermath. Continue reading “How economy is hitting older people”
“The early-morning calls from debt collectors continued even after her massive stroke, waking Bella Logan to daily reminders that she owed $75,000 in student loans. Logan is 94.” This is from today’s Columbus Dispatch, and the story is a grim recessionary tale:
“The federal government garnisheed $200 a month from Robert Austin’s Social Security checks for years for student-loan debt, leaving Austin without money he needed for medications. He is 83. After Ray Stockman’s wife died, he wanted to move but was turned down three times Continue reading “Seniors in debt over kids’ school loans”