"The retirement wave is just starting," notes Gluskin Sheff's David Rosenberg. "This is the primary reason for the secular decline in the participation rate. Indeed, from 2010 to 2013, more than 60% of labor force dropouts were retirees — more than double the share for the prior three years."
Graphically, the trend is breathtaking.
"This is not a chart of a dot-com stock circa 1999," said Rosenberg. "This is the annual increase in the number of Americans turning 65 — the number is going to be at least 1.5 million per year for at least the next fifteen years. We are seeing record high numbers of people falling into the 65 and over age bracket, resulting in a significant shift in U.S. demographics and thus the labor market."