Older Workers are Now Making More than Younger

It is becoming increasingly common for people to continue working until they are close to retirement age or past it. With this increase in working age, these individuals are also seeing an increase in the earnings per hour than their younger colleagues. The Brookings Institute is reporting that this is a major shift from how things were in the 1980’s and 1990’s.

One of the main reasons that those that are past the age of 60 tend to make more than the young guns out there is because they tend to be better educated and also in better health. Younger workers are also still struggling from the recession that the nation went into in 2007, whereas older workers are not as impacted by it. Labor economist, Gary Burtless of the Brookings Institute says “They all look like they’re doing pretty well because the young people are doing relatively poorly”.

To give you a clearer picture of what we are saying, we will take a look at the figures that were reported by the Social Security Administration. The SSA is reporting that 60 to 74 year old men that are still working earned $25.12 an hour and working men ages 25 to 59 earn $20.55 an hour as of 2011. The wage difference for women isn’t as significant as for men, but it is still present. Women that are still working aged 60 to 74 earn an average hourly rate of $18.51 and women that are ages 25 to 59 earn $16.87 as of the SSA reports from 2011.

Linn, A. (2013, June 13). Workers older than 60 making more than younger colleagues. Retrieved August 12, 2014, from http://www.today.com/money/workers-older-60-making-more-younger-colleagues-6C10300962

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