What Is The Great Retirement? COVID-19 Pandemic Leads To More Retirements

People have heard of “the great resignation,” but it is also happening alongside the great retirement, with those aged 65 to 74 among those who are retiring at a higher rather during the COVID-19 pandemic.

Data from the Federal Reserve Bank released last week, using the monthly Current Population Survey, estimated that there were 3.3 million more retirees in October 2021 than in January 2020, marking a 7% rise in retirements.

Retirements for those who are younger, aged 55-64, stayed flat throughout the pandemic.

The Federal Reserve Bank also found that women were more likely to retire than men, especially white women who are not college-educated. Workers who had some college education were less likely to be retired. The less a person is educated, the more likely they are to be retired, especially between the age of 65-74.

Results also concluded that retirements declined as household income increased, and veterans were also more likely to be retired. The urge for these older populations likely has to do with fears over COVD-19, including the fact that it is more likely to kill those who are older and the mental stressors associated with living through a pandemic.

Another reason the federal reserve listed was the abnormal effects of COVID-19 on the economy, including a “sharp downturn in real economic activity but also rising asset values, such as for housing and stocks.”

Retiree numbers in the U.S. grew to 18.3% in February 2020 and then increased quickly to 19.3% by August 2021, which amounts to 2.4 million excess retirements related to COVID-19.

However, there are still questions about whether these retirements will be permanent. The report wonders whether there are any changes that could be made to make people feel more secure about returning to the workforce.