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.