"53% of retirees in the United States go back to work either part-time or full-time," Mauro Guillén, Vice Dean at the Wharton School, told attendees of the NAPA 401(k) Summit Monday morning during a general session. Guillén emphasized that it's not just a money management issue—it's retirees wanting to feel useful and busy. Guillén started his session by describing the declining birth rates observed globally, attributing this to women's increased educational and economic engagement. "In the United States, the average number of children born to college-educated women is exactly one, whereas those who drop out of high school average three and a half children," Guillén explained, highlighting recent generational trends for a joint career-oriented household.
The conversation then shifted to the aging population, a phenomenon leading to more grandparents than grandchildren in the U.S. According to Guillén, this demographic shift will have significant implications for social security systems and the labor market. "We used to have five people of working age for every retiree, and now we're down to almost three," he noted, forecasting more dramatic declines over the next two decades.
Guillén also touched on the role of immigration in temporary fertility rate spikes in developed countries around the year 2000, a trend driven by higher birth rates among immigrant families. "[Immigrants] tend to have more babies than the mainstream of the population in their destination country," Guillén says. However, even those numbers are trending downward, according to Guillén's data, with humans living longer and changing lifestyles post-pandemic.
Guillén emphasized the significant concentration of wealth among older populations, noting, "In the U.S., 80% of the net worth is owned by people above the age of 60." He highlighted this demographic's economic power, which controls a substantial portion of the nation's wealth. Despite their financial influence, Guillén pointed out that "marketing and commercial efforts often overlook this influential group," suggesting a missed opportunity for businesses to connect with a key segment of the economy.
In terms of wealth accumulation, Guillén provided a detailed analysis of global trends, noting the doubling of millionaires worldwide. "Since 2007, the number of millionaires around the world has more than doubled, reflecting not just economic recovery but also a significant shift in wealth accumulation patterns globally," Guillén says. He also highlighted the shift in gender dynamics, with women increasingly becoming the family's primary earners and wealth accumulators.
Guillén also proposed rethinking retirement age based on increasing life expectancies and health spans. "We are living longer and staying healthier, which means the traditional model of retirement needs to be adjusted," he argued. Guillén suggested recalibrating retirement ages to allow people to work longer, alleviating some financial pressures on pension systems.
Guillén ended his session by emphasizing the urgency and necessity of rethinking our approach to work, retirement, and economic participation. "We must recalibrate our societal structures to embrace the longevity revolution," Guillén asserted. "The future belongs to those who can integrate the wisdom of age with the dynamism of youth. Let's redefine the meaning of a productive life."
