COVID-19 Forced Over 3 Million Americans to Retire Early, Study Says

Source: MarketWatch

Over 3 million Americans were forced to retire earlier than scheduled because of the COVID-19 pandemic, according to an analysis conducted by the St. Louis Fed.

• St. Louis Fed Senior Economic Miguel Faria Castro found that there were over 3 million excess retirements as of August versus normal retirements.
• The excess retirements account for over half of the 5.25 million individuals who left the labor force since the pandemic started.
• Castro attributed the uptick on the retirees being more vulnerable to infection and death and the surge in the stock and housing markets.
• The economist noted that as people get richer, they work less and evidence points that the evolution of asset values influences the participation of the labor force.
• Castro said that should the excess retirees be permanent losses in the labor force, the amount of slack may be smaller than the 5.25 million.
• He noted, however, that there may be retirees who decide to return depending on factors and the prevailing market conditions.