How asset gains have allowed older workers to achieve their retirement goals

  • Strong gains in asset prices have allowed many older workers to retire early
  • Labor-force participation rate among those over 65 has fallen
  • Labor-force participation among prime working years has recovered and exceeded prepandemic rates
  • Booming asset returns in 2020-21 have contributed to retirements
  • Factors such as health concerns and caregiving also influenced retirements
  • Older age cohorts are working at greater rates than before the pandemic
  • Permanent loss of experience and skill due to retirees not returning to the workforce
  • Retiring on wealth generated by the stock and housing markets
  • Impact of retirements on U.S. economy’s productivity growth

The historically low unemployment rate owes much to the record-high stock market, as strong gains in asset prices have lifted the wealth of many older workers, enabling them to retire early. The labor-force participation rate among those over 65 has fallen, while participation among prime working years has recovered and exceeded prepandemic rates. Booming asset returns in 2020-21 have contributed significantly to retirements, along with factors such as health concerns and caregiving responsibilities. However, older age cohorts are working at greater rates than before the pandemic, suggesting they have had to delay retirement due to not benefiting as much from the asset inflation. The absence of retirees over 65 represents a permanent loss of experience and skill, impacting the U.S. economy’s productivity growth. Retiring on the wealth generated by the stock and housing markets has become a reality for many, but it comes at a cost to the overall productivity of the economy.

Factuality Level: 7
Factuality Justification: The article provides some relevant information about the relationship between the historically low unemployment rate and the record-high stock market. It cites economists and provides data on the labor-force participation rate among different age groups. However, the article also includes some tangential information and a biased statement at the end.
Noise Level: 7
Noise Justification: The article provides some analysis on the relationship between the low unemployment rate and the record-high stock market. It discusses how the wealth generated by asset prices has allowed older workers to retire, leading to a decline in labor-force participation among those over 65. The article also mentions other factors that may have contributed to retirements, such as health concerns and the inability to shift to remote work. However, the article lacks scientific rigor and intellectual honesty as it does not provide data or evidence to support its claims. It also does not offer any actionable insights or solutions. Additionally, the article contains some filler content and unrelated information, such as the mention of text-to-speech technology and the request for feedback on the feature.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the relationship between the historically low unemployment rate and the record-high stock market. It suggests that strong gains in asset prices have allowed older workers to retire, which may have an impact on the labor force participation rate and potentially affect the economy.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article does not describe any extreme events or their impacts.
Public Companies: S&P 500 index (N/A)
Key People:

Reported publicly: www.marketwatch.com