Benefit cuts force many older people back to work

For nearly a century, Americans were able to retire at ever- younger ages and in greater prosperity. But over the last few years, they have begun staying on the job later into life.

As companies cut pensions and retiree medical coverage, many aging employees doubt that they can afford to retire, several experts and workers say.

While tight labor markets are also keeping older people at work, other causes appear likely to outlast the current worker shortage. "We have entered a new era," said Joseph F. Quinn, an economist and a dean at Boston College.

Government data show that the percentage of people over 65 who still work has been rising since the mid-1990s. Last year, at 12.8 percent, it was higher than at any time since 1979.

Economists and specialists on aging cite forces that include changes in the Social Security system, a ban on most forced retirements and the economy's shift away from back-breaking jobs like those in mining and heavy manufacturing. There have also been advances in medicine, so that as more elder-friendly jobs in the service sector appear, more people are healthy enough to fill them.

To many workers approaching the end of their careers, however, the most important factor has been the erosion of pensions, health insurance and other retirement benefits they had expected.

"Lots and lots of people's expectations are being dashed," said Norman Stein, a law professor at the University of Alabama who specializes in pension issues.

"Getting rid of a retirement incentive will, of course, have some impact on employees."

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