Bank of America says rising U.S. stock wealth may be prompting more people 55 and older to retire
A recent Bank of America research memo citing U.S. Bureau of Labor Statistics data said the labor-force participation rate for Americans age 55 and older fell to 36.9% in July 2026 from 40.3% in February 2020. Aditya Bhave, a managing director in Bank of America Global Research and a U.S. economist, said the decline was related to the S&P 500's gain of more than 35% over the past two years. In his view, the sharp stock-market rally made it easier for people who had been debating when to leave the workforce to choose retirement. Bhave said he would not attribute the phenomenon entirely to the stock market. “No single causal factor can fully explain this phenomenon,” he said. “But it is clear that the stock market has performed strongly over the past two years. If the market's performance since 2020 is included, the S&P 500 has more than doubled cumulatively. That wealth growth may prompt some people to retire, leading them to feel, ‘I don't have to keep working.’”
Aditya Bhave, a managing director in Bank of America Global Research and a U.S. economist, said the decline was related to the S&P 500's gain of more than 35% over the past two years. In his view, the sharp stock-market rally made it easier for people who had been debating when to leave the workforce to choose retirement.
Bhave said he would not attribute the phenomenon entirely to the stock market. “No single causal factor can fully explain this phenomenon,” he said. “But it is clear that the stock market has performed strongly over the past two years. If the market's performance since 2020 is included, the S&P 500 has more than doubled cumulatively. That wealth growth may prompt some people to retire, leading them to feel, ‘I don't have to keep working.’”