More Workers Postpone Retirement
You’ve heard about the increasing numbers of American workers who are either
postponing their retirement or re-entering the workforce. Why is this
happening—and what does this trend mean for employers?
In 1935, the
U. S. Social Security Act set the retirement age at 65. Back then, men who
lived to age 30 could expect to survive until the age of 67. Women who lived
to 30 had a life expectancy to 70. After working on a farm or in a factory,
retiring at 65 really meant an end to a person's working life!
Today
the statistics have changed. Life expectancy in the U.S. is 74 for men and
80 for women. That means the average worker will experience a "retirement"
period of nine to fifteen years—and for many it will be much longer.
According to a recent CareerBuilder.com survey, 51 percent of workers age 50
or older are postponing retirement. Many mature workers are looking to
change careers, and nearly three out of five workers age 50 or older plan to
seek new jobs after retiring from their present jobs.
Why
Are Mature Workers Staying in the Workforce?
• The global
recession means a huge loss in the value of the investments workers had
depended on to fund their retirements. Home values have sunk too low to
provide the nest egg many seniors need, and interest rates on cash-based
assets is close to zero. Between September 2007 and December 2008, assets in
retirement accounts lost $2.8 trillion, or 32 percent of their value.
• A big mistake that many make in their financial planning is assuming
that retirement is inexpensive. Most people need to make 80 percent of their
working salary to afford their retired lifestyle. Medical expenses including
insurance premiums, non-covered medical care, and prescription drug costs
can eat away at savings.
• Boredom is a factor, too. A recent Worth
magazine survey found that 41 percent of new retirees found retirement very
difficult. High-energy workers who dreamed of spending relaxing days on the
golf course indulge themselves for a year or two and then yearn for a
productive life.
• Many older people seek a job that provides them
with a feeling of accomplishment and satisfaction. They want to help others
and add value to society. Work activity often keeps a person more youthful
and more vital, and looking forward to productive work can be an inspiring
motivator for mature workers, and if illness does strike it can promote
quicker recovery. When faced with life tragedies such as the death of a
spouse or a child, many older people cite work as their reason to go on
living.
What does this mean for employers? When
hiring, employers now have a bigger, more qualified talent pool from which
to choose. A job notice that attracted twenty applications ten years ago
might now attract fifty. And employers are increasingly finding that the
applications that rise to the top of the pile are from highly qualified
mature workers.
Would you like to reprint this article?
You may as long as you include this blurb in its entirety:
Lisa Jordan
is a disability and workforce development expert. Lisa uses her keen ability to
identify challenges and develop solutions so
that workforce development professionals can increase their comfort level,
productivity and effectiveness when working with a diverse clientele. Download
Lisa’s White Paper on 5 Easy Disability Tips to Immediately Increase Agency
Accessibility by visiting
http://www.human-solutions.net.
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