FOX Business’ Gerri Willis reports on a new Federal Reserve study which found more than 70% of the nation’s wealth is owned by those over the age of 55.
Older workers are hanging around the office longer instead of retiring, and reports say it’s signaling bad news for young professionals looking to advance.
According to a recent piece from Axios, Gen Z and millennial workers are “locked into low-paying, junior-level jobs” with little room to climb the ladder.
Their dilemma? Older workers are already standing on the higher rungs, unwilling to step down and pass the torch.
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Retirement has been postponed for many Americans facing financial troubles. (iStock / iStock)
The Employee Benefit Research Institute (EBRI) found in a 2023 study referenced in the article that 33% of workers “planned to retire at age 70 or older, or never.”
But dilemmas work both ways. For those who have reached or are approaching retirement age, being financially on track for the major career milestone has become increasingly difficult.
One recent LiveCareer survey, for instance, found that 8 in 10 respondents have considered postponing their retirement, with another 92% concerned they will have no choice but to work longer than planned.
On a similar note, 61% said they fear retirement more than they fear death and 64% fear it more than divorce, with the possibility of running out of money being a driving factor behind that fear.
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Younger workers could experience a “ripple effect” from older employees’ reluctance to retire, a career expert warned. (Stefan Wermuth/Bloomberg via Getty Images / Getty Images)
Financial troubles are commonplace across the board, however. While older workers fear retirement and running out of savings, younger workers have struggled to experience traditional rites of passage such as owning a home or starting a family due to high living costs.
Combining that cumbersome cost with stagnant wages is a recipe for disaster.
“If you’re not moving up in the corporate ladder because there’s no space for you to move, then your earning potential is actually stalled,” career expert Jasmine Escalera told Axios.
“We may end up seeing a ripple effect where younger generations have a hard time increasing their earning potential, which could potentially also impact their ability to retire at a certain age as well,” she added.
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A recent AARP survey finds over half of adults over 50 are worried about having enough money for retirement.
At the same time, Gary Officer, CEO of the Center for Workforce Inclusion, told the outlet that increased technological demands for higher-end jobs tip the scales in favor of younger, typically more tech-savvy employees.
“Most of the in-demand occupations in this country [require] a higher level of technological proficiency that skews overwhelmingly towards younger people,” he said.
Others say technological skills give younger workers an edge in some career fields, including Taylor Blake from employee learning platform Degreed, who previously shared tips with Fox News Digital to keep older employees on pace with their younger colleagues in the ever-expanding need for technological knowledge like A.I.
‘Barron’s Roundtable’ discusses reports that Gen Z members are aggressive about wanting to retire.
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FOX Business’ Megan Henney contributed to this report.