Stock Market Boom Fuels Early Retirement as American Seniors Exit Labor Force at Faster Pace

August 11th, more and more older Americans are accelerating their exit from the labor force. The labor force participation rate of those aged 55 and above has dropped from over 40% before the pandemic to 36.9% in July this year.

U.S. Bank economists point out that wealth accumulation is one of the key factors driving this trend. With the S&P 500 index rising nearly 40% in the past two years, the continuously growing balances of 401(k) retirement accounts may enable more Americans to retire early.