Say Goodbye to Traditional Retirement
Who Says You Have to Stop Working? (And Should You?)
By Kate Lorenz, CareerBuilder.com Editor
I've thought a lot recently about my dad's retirement. He's a 67-year-old university professor whose youngest of five children just graduated from college. I pretty much assumed this would be the time. But he hasn't made any noises about it.
So I asked him: Why isn't he retiring? Is it because of the money or simply because he loves what he does and wants to continue working?
"I have a good life. If I retired, I'd pretty much do the same thing I do at the university -- read and write," he told me.
It makes perfect sense. He loves his job and the environment of learning. Plus, it doesn't hurt that he can keep earning a salary, receive benefits and accrue money on his 401(k) plan.
But what's a no-brainer for my dad is a huge dilemma for others. Today, hitting 65 isn't as easy as getting your gold watch and running.
"Older workers," those age 55 and older, are remaining in the workforce longer, whether because they have to financially or because of the desire to remain active and engaged.
65 Doesn't Mean Retirement Anymore
Environmental and societal changes are adding to the deferment of retirement. Today, life expectancy in the United States is at an all-time high of 77.4 years. The shift from manufacturing to more computerized, less physically demanding jobs enables older workers to stay on the job. And, Congress recently raised the age at which retirees qualify for full Social Security benefits from age 65 to 67, thus encouraging workers to remain in the workforce.
In 2004, almost one-third of workers aged 55 and older plan to retire at or older than age 66, according to the Retirement Confidence Survey, which reports annually on the retirement expectations of workers. Plus, approximately 70 percent of workers between ages 25 and 54 expect to work in retirement.
The Bureau of Labor Statistics (BLS) tells us that once the oldest baby boomers reach age 65 in 2011, the population will begin to age rapidly. And the U.S. Census Bureau predicts that between 2000 and 2040, the number of Americans aged 65and older will more than double.
Help for the Worker Shortage
"Based on data supplied by The Bureau of Labor Statistics, we believe that by the year 2010, we will have a shortfall of 10,033,000 skilled workers. The magnitude of this shortage will make the late '90s seem like a practice session," says Joyce L. Gioia, author of Impending Crisis: Too Many Jobs, Too Few People and president of The Herman Group.
Bottom line: Older workers can be key figures in soothing the impending worker shortage crisis. This looming shortage will result in fewer workers available to produce goods and services, threaten standards of living and dramatically reduce Medicare and Social Security funding. Higher employment rates among older adults could increase the labor force and reduce claims on retirement benefits.
Older Americans can make a profound difference for U.S. employers because of the knowledge and wisdom they possess, says Gioia. "We are seeing a new trend that personally brings us pleasure: Older workers are being valued over younger ones for their stability and wisdom."
However, employers will have to learn to be more flexible if they want to hold on to this valuable human capital. They will have to offer part-time work, as well as job sharing and other accommodations.
The Disconnect Between Needy Employers and Discouraged Job Seekers
Back to my family. Consider my uncle -- he's in his early 50s and was forced into retirement a few months ago after working for 30 years for the same company. Financially and mentally, he's not ready to retire. Unfortunately, he doesn't think he'll be able to find work because of his age.
"Older workers do not need to retire to 'make way' for younger workers," says Martin Rome, vice president for strategic communications for Experience Works, a national, nonprofit organization that provides training and employment services for mature workers.
The growing economy and slowing growth rate of workers will create demand for all skilled workers, says Rome. Job seekers need to understand the needs of employers and have the right skills to meet those needs, regardless of their age.
With older workers remaining in the workforce and easing the strain of the shortage, it's possible there could still be a disconnect between needy employers and discouraged older job seekers. Gioia offers these tips to older job seekers to stay competitive.
-- Read the trademagazines in your industry voraciously.
-- Follow the thought leaders in your industry, and project out what's next (Future thinking).
-- Scan job postings for what skills and programs are in demand.
-- Stay up-to-date with the latest technology in your field (especially important for people in IT).
-- Hold the attitude that if you are not growing, you are stagnating. Understand that you can't afford to stagnate. Stagnation will result in "career death."
- Each of us must be dedicated to continuous, never-ending improvement.
So I asked him: Why isn't he retiring? Is it because of the money or simply because he loves what he does and wants to continue working?
"I have a good life. If I retired, I'd pretty much do the same thing I do at the university -- read and write," he told me.
It makes perfect sense. He loves his job and the environment of learning. Plus, it doesn't hurt that he can keep earning a salary, receive benefits and accrue money on his 401(k) plan.
But what's a no-brainer for my dad is a huge dilemma for others. Today, hitting 65 isn't as easy as getting your gold watch and running.
"Older workers," those age 55 and older, are remaining in the workforce longer, whether because they have to financially or because of the desire to remain active and engaged.
65 Doesn't Mean Retirement Anymore
Environmental and societal changes are adding to the deferment of retirement. Today, life expectancy in the United States is at an all-time high of 77.4 years. The shift from manufacturing to more computerized, less physically demanding jobs enables older workers to stay on the job. And, Congress recently raised the age at which retirees qualify for full Social Security benefits from age 65 to 67, thus encouraging workers to remain in the workforce.
In 2004, almost one-third of workers aged 55 and older plan to retire at or older than age 66, according to the Retirement Confidence Survey, which reports annually on the retirement expectations of workers. Plus, approximately 70 percent of workers between ages 25 and 54 expect to work in retirement.
The Bureau of Labor Statistics (BLS) tells us that once the oldest baby boomers reach age 65 in 2011, the population will begin to age rapidly. And the U.S. Census Bureau predicts that between 2000 and 2040, the number of Americans aged 65and older will more than double.
Help for the Worker Shortage
"Based on data supplied by The Bureau of Labor Statistics, we believe that by the year 2010, we will have a shortfall of 10,033,000 skilled workers. The magnitude of this shortage will make the late '90s seem like a practice session," says Joyce L. Gioia, author of Impending Crisis: Too Many Jobs, Too Few People and president of The Herman Group.
Bottom line: Older workers can be key figures in soothing the impending worker shortage crisis. This looming shortage will result in fewer workers available to produce goods and services, threaten standards of living and dramatically reduce Medicare and Social Security funding. Higher employment rates among older adults could increase the labor force and reduce claims on retirement benefits.
Older Americans can make a profound difference for U.S. employers because of the knowledge and wisdom they possess, says Gioia. "We are seeing a new trend that personally brings us pleasure: Older workers are being valued over younger ones for their stability and wisdom."
However, employers will have to learn to be more flexible if they want to hold on to this valuable human capital. They will have to offer part-time work, as well as job sharing and other accommodations.
The Disconnect Between Needy Employers and Discouraged Job Seekers
Back to my family. Consider my uncle -- he's in his early 50s and was forced into retirement a few months ago after working for 30 years for the same company. Financially and mentally, he's not ready to retire. Unfortunately, he doesn't think he'll be able to find work because of his age.
"Older workers do not need to retire to 'make way' for younger workers," says Martin Rome, vice president for strategic communications for Experience Works, a national, nonprofit organization that provides training and employment services for mature workers.
The growing economy and slowing growth rate of workers will create demand for all skilled workers, says Rome. Job seekers need to understand the needs of employers and have the right skills to meet those needs, regardless of their age.
With older workers remaining in the workforce and easing the strain of the shortage, it's possible there could still be a disconnect between needy employers and discouraged older job seekers. Gioia offers these tips to older job seekers to stay competitive.
-- Read the trademagazines in your industry voraciously.
-- Follow the thought leaders in your industry, and project out what's next (Future thinking).
-- Scan job postings for what skills and programs are in demand.
-- Stay up-to-date with the latest technology in your field (especially important for people in IT).
-- Hold the attitude that if you are not growing, you are stagnating. Understand that you can't afford to stagnate. Stagnation will result in "career death."
- Each of us must be dedicated to continuous, never-ending improvement.
Copyright 2004 CareerBuilder.com. All rights reserved. The information contained in this article may not be published, broadcast or otherwise distributed without prior written authority.
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