b'AGING IN THE 21ST CENTURYCHAPTER 1|WORKING LONGERAfter steadily declining for several decades, Americans average age at retirement began increasing in the early 1990s and continues to increase. Tracking this trend and understanding its implications is especially important as the large Baby Boom generation enters retirement. Policy makers can prepare for the aging of the Baby Boom generation with a better understanding about who works longer and why. Who decides to work at older ages, and what impact do things like health, health insurance, and pensions have on this decision? Are we healthy enough to keep working past normal retirement age? What impact does retirement have on health? This chapter addresses these questions by examining HRS research on health and well-being at retirement and beyond.I mprovements in health at older ages coupledwell. In addition, retirement appears to affect usWho is Working Longer? with increased take-up of Social Securityboth physically and mentallysometimes forHRS research confirms trends found in labor Disability Insurance (SSDI) make the issuebetter, sometimes for worse. statistics: we are working longer (Figures 1-1a of health trends important and unresolved. Forand 1-1b). Because the HRS continues to enroll example, HRS research finds that half of menTrends in Working Livesyounger cohorts, researchers can document how aged 65 to 74 report no work-limiting physicalFew national statistics are as closely watchedretirement patterns change over time, comparing impairment. Yet a significant proportion reportas the number of people in the labor force. Thethe behavior of younger workers to older workers limitations that make working at older ages dif- Current Population Survey, a study conductedat the same age. The HRS also asks participants to ficult. Using the rich set of information availableby the US Census Bureau for the Bureau of Laborevaluate their probability of working past certain in the HRS and leveraging its longitudinal aspect,Statistics, is the primary source of information onages to provide a window on cohort differences in researchers are evaluating predictors of labortrends in labor force participation. These statis- likely retirement plans. Beyond just document-force participation as well as consequences oftics and other sources confirm that Americans areing trends, however, HRS research also reveals decisions about working at older ages. As a whole,working longer than in past decades. These largeimportant information about who works longer HRS research reveals that health is highly rele- surveys offer accurate estimates but contain littleand why.vant in work decisions. External incentives suchinformation to explain this trend. The HRS helps as Social Security, Medicare, health insurance andfill this gap.pensions play large roles in retirement timing as 20'