Retirement Surge Will Create More Job Openings

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A record 4.1 million Americans will turn 65 each year through 2027, according to the Alliance for Lifetime Income’s Retirement Income Institute.

This "peak 65" surge is expected to lead to a record number of retirements and will job openings high, pushing employers to raise wages to attract workers from a slower-growing labor force.

In May, there were 8.1 million job vacancies, down from a peak of 12.2 million in March 2022 but still well above the pre-pandemic average of 7 million.

Economist Michael Reid of RBC Capital Markets told USAToday that job openings will stay above pre-COVID levels, especially in industries with many older workers, like manufacturing, health care, government, and education. The increased demand for workers will likely lead to higher wages and prices.

Julia Pollak, chief economist at ZipRecruiter, agrees but notes that retirees usually have less income, which may reduce their spending and limit inflation. So far this year, about 900,000 Americans have retired, with expectations of a record 1.7 million to 2.1 million retirees by year-end, based on Social Security Administration data.