Working Through Retirement: Avoiding Red in the Golden Years

In my last post here, I focused on what I see as the need for Americans to postpone retirement until at least age 70, due to the substantial increases seen in longevity alone since the establishment of the federal assistance program for aging folk during the Great Depression. While I admit that the reality of turning this directive into policy will most likely take considerable time as Social Security is all too bogged down by bureaucratic hurdles and partisan conflict, individuals in the meantime must take personal responsibility for their financial futures and emotionally reconcile with the necessity of working longer. This need has been made all the more pressing in recent months as the economy has taken sharp downturns that have hit workers hard across the age spectrum. Current issues for older employees (loss of pensions, decreasing values of investment funds) therefore present two options: staying longer than intended at their current jobs, or, if that is not an option, finding another job, referred to by some as a "second career." Many have been forced into the latter route even after years of retirement. In an effort to gauge how others feel about this development, I surveyed the blogosphere and found a number of thought-provoking entries. In a post from the Forrester Blog for Information & Knowledge Management Professionals, blogger Connie Moore examines the challenges older workers face, both on the job and in deliberating retirement. A second post from the Job Searching Blog explores the alternatives offered to those unable to stay at their current jobs. My posted comments to both appear below.

"Retirement??? You've Got To Be Kidding!"

Comment:

Thank you for your insightful post regarding the various and often complex considerations that go into modern retirement. It seems so often that we hear about older workers having difficulties or being the target of layoffs because of their inability to keep up with job responsibilities and the demands of an ever-changing workplace, frequently without satisfactory explanation as to why this is so. Your detailing of some of the specific physical changes that underlie such instances is fascinating and appreciated. Regardless of the troubles some aging employees face, they are a valuable asset to countless offices and companies across the United States, and their presence and contributions to the workforce ought not to be discounted. The simple fact that we will all be in their position one day further mandates that we afford them the satisfactory treatment they deserve. Given the current economy, many of us face an even greater amount of financial insecurity upon reaching senior status. According to a recent survey conducted for TD Ameritrade, 63% of people have stopped contributing to their retirement accounts. Now more than ever, when investment funds once depended upon to support older individuals in retirement are subject to the volatile market swings, we need to reexamine their role in the labor force and make it easier for them to at least continue to work in some capacity years later than they may have originally planned for. This includes both the increase of resources to be made available to those older individuals looking for so-called "second careers" as well as on-the-job training for those able to stay where they are currently (an example of which is pictured above). Because many companies may resist the implementation of an expensive training program, I advocate an "official" delay of retirement at the federal level, from the existing 65 (although the average retirement age is in fact 63) to perhaps age 70. While many people have already come to terms with this postponement, and you speak of those who even desire it, it is time we incorporate it on the policy level so as to motivate the working masses and make on-the-job training for older workers the norm, rather than the exception. I do recognize that retirement for many is an emotional as well as a financial decision to those who have eagerly anticipated a few years of well-deserved rest and relaxation after decades of service, and I similarly concede that even the contemplation of when to retire is a taxing one. Nonetheless, my preference to delay Social Security benefits a few years would not only help to alleviate the fiscal implications of deciding when to retire, but would also force people to reevaluate contemporary retirement by removing the element of choice (obviously, exceptions would apply). Aging workers can get the help they need, if we adopt change at both the policy and personal level.

"Rewire, Don't Retire"

Comment:

Your interesting and judicious post is a timely one, as the economic downturn is often felt twice as hard by seniors as retirement funds are lost and layoffs are disproportionately doled out to older workers. I especially appreciated your use of statistics tracking the aging workforce. The numbers cited are both ominous, as to whether or not a prolongation of this bleak economy will be able to support such a growth in 65+ workers, as well as encouraging, in that an increasing number of persons expect to work in retirement. While older employees might fear being laid off in favor of young and perhaps more "trainable" workers, your post makes the valid point that aged individuals who do not require training are considerably more financially efficient in certain fields. A number of other traits traditionally recognized to be held more so by older workers inspires additional confidence. Nonetheless, for those who may have to seek further work, the prospect of entering the current job market is daunting, especially for older individuals unprepared for the competition and even more so for those who are having to come out of retirement after several years of respite. Resources directing these people to senior-friendly companies (such as Wal-Mart) and available training programs are invaluable to this demographic, and will hopefully lend assistance where it is increasingly needed. While I am heartened to read that several of the individuals you cite, as well as many of those polled by AARP, are resigned to working years past they originally planned, it is my opinion that the "official" retirement age (defined here by the age at which Social Security benefits kick in in full) be extended. Although I admit this to potentially carry an emotion cost comparable even to the financial benefit of working longer, it is my opinion that continuing to work, especially in a "second career" type of situation, can not only be fiscally smart but psychologically rewarding for many aging individuals as well. Of course, this potential fulfillment will only come when seniors are able to find work relatively easily and in varying areas of interest, further emphasizing the need for resources akin to the ones you cite here.

Rethinking Retirement: The Consequences of Increased Longevity and Financial Uncertainty

For many people in this country, the promise of a relaxing and carefree retirement is as much a part of the American dream as the decades spent working for paychecks and climbing career ladders. Unfortunately, this dream is turning into more of a fantasy for many who planned to walk out of the office door and never look back upon reaching age 65. The reality of previously held unrealistic expectations regarding retirement, compounded with the increasingly dismal economic crisis, have forced American workers across the pay scale to acknowledge that retirement may have to wait. Even if the economy was good, which it clearly is not, a retirement age of 65 is simply not practical. While some may feel it unfair to be told to put a few extra years in, the retirement age should be extended, if not at the policy level then at least at the personal level for now. This decision is now all but required for the present and future financial security for aging individuals.

Although some companies offer employees pension plans in one form or another, a major source of income for many retired Americans is government-operated Social Security. Frantic projections that Social Security funds are to run out any second and explicit reform plans from Congress members and interest groups aside, one thing is certain: while demographics have undergone immense changes in the proportions of older individuals to the rest of the American population in the years since Social Security was first conceived, evolution of the program itself has failed to keep pace with the society in which it operates. The Social Security Act was passed by President Roosevelt in 1935 in response to the unemployment rates brought on by the Great Depression. The Act allowed retired workers aged 65 and older to collect annual wages from the federal government. At the time, life expectancy at birth in the United States was 61.7 years, a full 3.3 years less than the retirement age! This means that more than half of the people born in 1935 were not even expected to reach retirement age, let alone be eligible to collect Social Security. In 2004, as shown by the graph at the right (along with projections through 2050), U.S. life expectancy at birth was 77.9. The retirement age, however? Still 65. In fact, workers are now able to begin receiving Social Security benefits at age 62, albeit at a reduced rate. Additionally, the life expectancy at age 65 (the number of additional years an individual can expect to live upon reaching the age of 65) has increased as well, so qualifying retirees can expect to collect benefits for longer than they did when the Act was originally conceived. In other words, there are not only more individuals collecting benefits (there were a total of 35.9 million adults age 65 or over in 2000, up from 7.8 million in 1935), but also collecting for longer. A simple look at the numbers and it is easy to see why Social Security has become such a problem for this nation.

Unfortunately, the current economic climate not only increases the necessity of delaying retirement but also makes the directive of merely telling working adults to stay behind the desk for a couple of extra years a little more complicated as well. A recent New York Times article details the declines in millions of 401(k) plans as a result of the plunging stock market, as well as the increasing amount of individuals who are not currently able to contribute to such retirement funds in the wake of rising mortgages and energy prices. Among boomers, "20 percent said they had stopped contributing to retirement plans, 34 percent said they were thinking of delaying retirement and 27 percent acknowledged problems paying rent and mortgages." Article author Steven Greenhouse also features several individuals who are now preparing to retire as many as ten years later than they had originally planned. Nicolette Toussaint, age 57 and an associate vice president for communications at Alliant International University in San Francisco, is one of those reconsidering her future. "'I sort of assumed that I would probably retire around 68," Toussaint is quoted as saying. "But with what's happened recently, I'm thinking I might work until 75 or 77, so long as I'm healthy." An AARP feature additionally mirrors the growing concern about the economy's impact on individual retirement plans, providing the answers to the top financial questions from seniors. Many of these queries concern investment funds previously depended upon to support them in their retirement, now seriously jeopardized by market drops. Furthermore, the economic quandary delivers a double blow to seniors in the fact that hard-hit employers are having to resort to layoffs, a development that disproportionately affects older individuals as companies aim to push out the most expensive employees (who tend to be the oldest). Aged workers are also often viewed as having more difficulty adapting to new technology and changes in responsibilities. As a result, even those older adults who want to delay retirement are sometimes forced into it.

So what can older members of the workforce do? First and foremost, if possible, they should keep working. If doing so at their current job is not an option, there are still a number of alternatives to full retirement. Other New York Times articles highlight the growing number of aged individuals who go back to school for alternate and advanced degrees (the number of graduate students older than 50 "grew by 38 percent between 2001 and 2005, according to the National Center for Education Statistics"), as well as some who leave more competitive fields for second careers involving personally meaningful work. Those wishing to embark on their "second act" have a number of resources to turn to, including job search websites aimed at older job seekers such as SeniorJobBank.org and RetiredBrains.com. RetirementJobs.com (pictured at left), for example, lists a number of their "certified age friendly companies," from Macy's to Safeway to Wells Fargo. Although it is clear that the provisions of Social Security will have to be reformed in a major way by the federal government, it is imperative that individuals incorporate change into their retirement plans now. This is especially necessary given the present economy. While this may be an emotional as well as a financial adjustment for some, a fiscally secure retirement is well worth it.

Aging Online: A World Wide Web of Aging Information and Resources

For my post this week, I took to the web to explore the websites and blogs I find to be interesting and useful regarding the developments in aging. These sites represent a wide variety of style, content, and intended audience, but all are united in their desire to provide information on the important and rapidly-changing world of aging research and policy. Using the guidelines established by the Webby Awards and the IMSA, I evaluated my favorite sites along a number of criteria, including content, structure and navigation, visual design, functionality, interactivity, and overall experience. Additionally, I assessed the selected blogs on measures such as blogger identity, authority, citation, and sophistication. As well as adding these sites to my linkroll, I have included the links within my brief synopses here.

The first subset of sites I find to be useful are those that disseminate the basic background and information concerning the health issues that are commonly associated with aging, Alzheimer's disease in particular. WebMD, a popular and user-friendly health information database, has an Alzheimer's Disease Health Center that is well-organized and information-rich on the many facets of the disease. Visitors familiar with the main site can trust the comprehensive disease guide to be accurate and easy to understand. Message boards increase the site's personalization and interactivity. OurAlzheimers.com presents a similar collection of disease facts, treatments, and resources. The reputable site affiliates and featured content from leading health publications bolster the credibility of the site. Health Talk is another news and information database for Alzheimer's patients and their families. The site is easy to navigate and does not overwhelm the visitor with links. A search function allowing visitors to type in their city and state provides a helpful tool for those looking for a specific type of doctor in their area. Health and Age presents an attractive and organized home page offering a variety of Alzheimer's news, articles, and tools. One sticking point is the ambiguity of the graphics along the left side of the site, as it is unclear whether they are links or advertisements. As an international health database, Health Republic offers much of the same information found on the previous sites, as well as a collection of health news that draws from a global rather than national database. Although not all of the stories concern aging health issues, the volume of articles, as well as the pleasing visuals, makes the site a unique informational resource.

The next subset of my preferred sites is made up of nonprofit organizations and lobbying and special interest groups. Probably the most well-known senior interest group, AARP's website (the logo of which is pictured below) is exactly what a visitor would expect: authoritative, organized, and wide-ranging in terms of information. In addition to the usual news and research presented on many sites aimed at seniors, AARP offers fun and entertaining features, such as recipes and travel tips, that contribute to the sense of a well-rounded community. Another prolific organization is the Alzheimer's Association. Their site offers a similar collection of information and community tools, although the lackluster aesthetics leave a little to be desired. AgingCare.com is a comparable forum with a more appealing layout. However, a lack of clear affiliation and identity (be it partisan or nonprofit, et cetera) lends doubt to its authority. The Alliance for Aging Research's page is far less interactive that previous sites, and instead focuses on the concise detailing of recent publications concerning research conducted in the field of aging. Despite its lack of bells and whistles, the site serves its purpose as a compilation of more obscure sources. Likewise, the International Longevity Center's site favors function over form. Unlike other organizations, the focus here is not dementia or Alzheimer's but "normal" aging, setting it apart in a unique and interesting way. In addition to these non-governmental organizations and groups, the federal government offers its own assortment of sites aimed at the aging community, a couple of which are of particular use and interest. Clearly, these sites, although they tend to be a bit on the boring side, carry a huge amount of authority. The first site is the Administration on Aging (AoA), a collection of government-sanctioned resources for the press, professionals, and elders and their families. As part of the larger Medicare site, Ask Medicare is the new government feature aimed directly at caregivers (as well as the topic of my analysis in an earlier post).

The final subset of websites I feel are particularly helpful are blogs, many of which are created and maintained by individuals, professionals and laymen alike. The first several blogs I explore, however, are sponsored by major news outlets. The New York Times' The New Old Age is devoted to exploring not only the effects of aging on seniors, but other adults majorly implicated by the changes (such as the boomer generation) as well. The blog obviously brings a strong authority, and blogger Jane Gross effectively and knowledgeably details a wide range of aging topics. A supplement of links and resources adds to the well-roundedness of the blog. Similarly, the Wall Street Journal lends its weighty reputation to their Health Blog, which emphasizes the business aspect of the health community. The content-rich site adds fresh perspective to the overall implications of what an aging society means for America. The first of the individual blogs, Ageing Research focuses more on the scientific, rather than societal, developments in aging. Posts are well-written and engaging, and the author clearly brings an extensive education and background to the discussion table. Another blog, Ouroboros, also focuses on the biology of aging. Although some of the posts are a little inaccessible in their terminology and technicality, a unique perspective and a clean layout make for a fascinating, if somewhat tangential, read. As part of a much larger network of caregivers' blogs, Minding Our Elders is aimed at the family and friends of aging individuals. Although it features a scattered design and hodgepodge of subject matter, the blog hosts a definitive voice and obvious passion. Another blog centered on caregiving is Aging Parents Insights. Author David Solie addresses a number of significant issues within the realm of aging, and offers visitors to pose questions to him directly through the website. The Health Care Blog (pictured right), vetted by respected news organizations for its insight and information, almost overwhelms with the amount of links and resources it offers, in addition to its diverse reporting on the site itself. Content is topical and sophisticated, with a discriminating use of graphics and advertising that could distract from all the site has to offer. Finally, Senior World Chronicle is the blog answer to Health Republic, in terms of its international accent. While most posts seem to be a republishing of articles from around the world, extensive archives and labels tie a number of topics concerning aging to a centralized site. While not without some drawbacks, each of these sites offer a number of positive aspects and unique perspectives. I encourage you to visit them and explore the many resources and viewpoints that exist within the aging news and research community.