Breaking Down the Great Resignation
Lately, the "Great Resignation" has led many Americans to leave their jobs for other opportunities, while others have chosen a different path: early retirement. We can all understand looking for a more suitable place of work, but some might ask, "Why now?"
The Great Retirement Boom. In 2008, the oldest baby boomers reached age 62. This coincided with the "Great Recession," which contributed to a slowed economy. Jump to 2021 when the economy had distanced itself from those events and just over half of adults aged 55 or older had exited the workforce and retired. For adult Americans aged 65 to 74, the percentage who had left the workforce was 66.9 percent. In short, many people decided to hold off on retiring and wait a few years, meaning it's not an early retirement so much as a delayed one.1
Covid Catchup. Another reason is that the pandemic created a period of flux in which people decided it was natural to work less, transition to new things, or retire altogether. The pandemic has undoubtedly gone on much longer than any could have imagined. It’s understandable that someone reaching the end of a long and rewarding career may choose to exit their job during COVID-19 and parachute into a less stressful, more enjoyable career.
Looking Ahead. Let's chat if you're thinking about making a change to your time horizon or retirement goals. We'd love to discuss where you stand and the drawbacks and advantages of retiring in the current environment.
Glad M. Perez may be reached at firstname.lastname@example.org or 908.333.0885.
- Pewresearch.org, November 4, 2021