USA Today: Boomers May Not Be Able To Find Work After 60

USA Today's front page story is a bucket of cold water for baby boomers who expect to work into their 60's to save money for retirement:

The stark reality is that most of today's middle-age workers who want to continue working after 60 or even 65 will need to find a new source of income. While nearly half of baby boomers expect to work past 65, only 13% of current retirees surveyed this year by consulting firm McKinsey & Co. actually worked past that age. Forty percent of current retirees were forced to stop working earlier than they had planned, the survey found. The average age when current retirees left the workforce: 59.

The article notes that among the implications, Social Security is reduced for those who start to take them before 66 or 67 (depending on year of birth) -- so someone who can't find work and starts drawing benefits faces a double whammy of no wages now and lower Social Security for the rest of their life.

The article cites Labor Department statistics showing that 60% of 60 year olds and only 32% of 65 year olds are employed.* Two reasons stand out, according to reporters Sandra Block and Stephanie Armour: illness, and involuntary unemployment -- downsizing or termination.

It's not easy for older workers to find another job. The article recounts how a researcher sent out 4,000 resumes to companies advertising for positions; younger workers were 40% more likely to be called in for an interview that job-seekers 50+ (read a summary of the study here).

As you would expect, older workers turn to self-employment, whether as independent contractors or entrepreneurs.

One ray of hope: an expected shortage of skilled workers as baby boomers retire. But that's bad news for the less-skilled.

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* no word on if that is the entire cohort of 60 or 65 year olds, or just those actively seeking work.