The Psychology of Working Longer

Abstract

AbstractAbstract: Why do some people continue working, while others choose to retire? The economy and job availability shape these decisions, but psychology also plays a role. We describe decisions to work longer as a function of individuals’ skills, their perceptions of their ability to keep working, and their motivation to work. These psychological processes are a function of individual abilities, environmental attributes, and their interaction. We explore what organizations can do to influence workers’ skills, perceptions, and motivations in order to retain older workers. We identify five areas for future research: a focus on working longer as well as retirement; heterogeneity among older workers; how to engage older workers in 21st century jobs; future time perspective as a lever for extending work lives; and how major disruptive events like the COVID-19 pandemic influence the experience of work and decisions to work longer among older workers.