Posts Tagged "middle age"
March 15, 2022
High School Career Courses Keep on Giving
For young adults who don’t have a college degree, the career-oriented courses they took in high school give them a leg up in the job market. But do the benefits of higher-quality employment after high school continue into middle age?
The first known U.S. study to examine the long-term impact of high school curricula finds that career and technical classes produce workers who, even though they didn’t attend college, are employed at age 50 – even better if they also took Algebra 2 and other college-prep math courses.
To target the students who prepared themselves for better-paying jobs, the courses the researcher counted as career-oriented were business and marketing, health care, agriculture, and computer programming. Amanda Bosky at the University of Wisconsin excluded courses that tracked students into low-wage work like food service and childcare.
Career and technical courses improved the labor market standing of men and women, with subtle differences. For the women, the more career courses they took in high school, the more likely they were to be employed at age 50. The benefits held true regardless of the individual’s innate characteristics, which usually play a role in career success – from scores on standardized math tests to parents’ income.
For 50-year-old men, any amount of career and technical training improved their odds of continued work, according to the analysis, which used a survey of 1982 high school graduates that checked in on them again decades later. The students’ transcripts, detailing their coursework, supplemented the survey.
Although Bosky didn’t examine the types of jobs the older workers were doing, her premise is that it’s better to be employed than not in the years before retiring.
The findings have another important implication. Understanding what it takes for high school graduates to be engaged in the labor force at 50 is crucial at a time secure union jobs are being eliminated and the demands of a technology-based economy have increased. …Learn More
July 21, 2020
Pandemic Puts More Retirements at Risk
Americans’ retirement outlook has gone from bleak to bleaker.
The unemployment caused by COVID-19 has pushed up the share of working-age households not able to afford their current standard of living in retirement from 50 percent to 55 percent, according to a new analysis by the Center for Retirement Research, which sponsors this blog.
The analysis updates a previous estimate, based on 2016 data, to include the harmful effects of surging unemployment. The researchers estimate that perhaps 30 percent of workers – far more than is reflected in the monthly jobless rate – could be affected by layoffs now and in the future. They did not factor in the recession’s impact on the housing and financial markets, which could make things worse.
Unemployment hurts retirement in a variety of ways. Laid-off workers’ paychecks vanish immediately, but they may also earn less in the next job. The depressed earnings, over months or years, reduce the money flowing into their 401(k)s, and the amount they’ll receive in pensions and future Social Security benefits. It may also force some to spend down savings that, had they not lost their jobs, would’ve been preserved for retirement.
Interestingly, the impact on low-income workers is mixed. In one way, they’re protected by Social Security’s progressive benefit formula, which will replace a higher percentage of their earnings as their lifetime earnings decline. But low-income workers have had more layoffs, which widens the gap in their retirement savings – between what they can save and what they should be saving – more than for higher-income people.
The 2020 recession will impact retirement “in a very different way” than the Great Recession, the researchers said. This time, “the destruction is occurring more through widespread unemployment and less through a collapse in the value of financial assets and housing.” However, the lessons of the previous recession can’t be dismissed either. …Learn More