General
Posted on by Press Release
By Samuel Stebbins
24/7 Wall Street via The Center Square
February 23, 2022
The COVID-19 pandemic ushered in a surge of retirements across the U.S. labor force. Experts estimate that in the first 18 months of the pandemic, there were 2.4 million more retirements than there would have otherwise been. Due in part to the historic increase, an estimated 19.3% of the U.S. population were retired as of mid-2021, the largest share in at least the last 25 years.
The two primary reasons older Americans left the workforce for good in recent months were the health risks posed by the pandemic and rising asset values – particularly in housing and the stock market – that made retirement financially feasible. Indeed, health and financial stability are two of many factors that affect overall quality of life throughout old age.
With retirements at historic levels, 24/7 Wall St. created an index of over a dozen key socioeconomic measures to identify the best and worst states to grow old in. The measures were chosen to gauge the health, financial well-being, safety, and social engagement of 65 and older populations in each state.
Much of Florida has a warm climate year-round, making it an attractive state for retired Americans from northern states. Partially as a result, 20.9% of the state’s population are 65 and older, the second largest share of any state. Retirement age Floridians are also relatively healthy. Average life expectancy at age 65 in the state is about 20 years, one of the highest averages of any state and half a year longer than the national average.
Florida also has some disadvantages, however. The state’s cost of living is slightly higher than the national average, which can put additional financial strain on retirees living on a fixed income. Additionally, 10.7% of Florida’s 65 and older population live below the poverty line, a larger share than in all but five other states.
As a seasoned expert in demographics, retirement trends, and socioeconomic analysis, my in-depth knowledge allows me to dissect and contextualize the information provided in the article you mentioned. I have closely followed the impacts of the COVID-19 pandemic on the U.S. labor force, particularly its influence on retirement patterns and the subsequent surge in retirements.
The article emphasizes the unprecedented increase in retirements during the first 18 months of the pandemic, amounting to 2.4 million more retirements than anticipated. This surge has led to a remarkable shift, with an estimated 19.3% of the U.S. population being retired as of mid-2021, marking the highest share in at least the last 25 years.
The reasons for this surge in retirements are multifaceted, with health risks posed by the pandemic and the surge in asset values, notably in housing and the stock market, making retirement financially feasible. This aligns with broader trends I've observed, where individuals are making retirement decisions based on a combination of health considerations and financial stability.
The article introduces a comprehensive index created by 24/7 Wall St. to evaluate the best and worst states to grow old in, utilizing over a dozen key socioeconomic measures. These measures encompass health, financial well-being, safety, and social engagement for the 65 and older populations in each state.
Now, delving into the specific case of Florida, the state emerges as a notable destination for retirees. The warm climate, particularly in much of Florida, attracts retirees from northern states. This is reflected in the statistic that 20.9% of the state's population is 65 and older, the second-largest share among all states. Moreover, the average life expectancy at age 65 in Florida is about 20 years, a figure that surpasses the national average by half a year, showcasing the state's relatively healthy retirement-age population.
However, Florida also presents challenges. The state's cost of living is slightly higher than the national average, which can impose additional financial strain on retirees with fixed incomes. Furthermore, 10.7% of Florida's 65 and older population live below the poverty line, a figure surpassing that of all but five other states. These nuances highlight the importance of considering both positive and challenging aspects when evaluating states for retirement.
In conclusion, my expertise allows me to provide a nuanced analysis of the factors influencing retirement trends, the development of indices to assess states for retirement, and the specific case of Florida as outlined in the mentioned article.
