3/26/2013 3:00 PM ET|
Impact of boomers working past 65
You may have heard that the gigantic generation is starting to retire. That's true of many, but the presence of those who remain will be greatly felt.
Ever since the Social Security program was created back in 1935, we have come to accept 65 as the age we can expect to retire. Many companies followed suit, and 65 was typically viewed as the end of the road for corporate careers and the trigger for pensions, gold watches and retirement parties.
But today, reaching age 65 does not automatically mean it's time to retire. The promise of a relaxing and stress-free retirement has been replaced in many cases by the reality that people are not ready to retire. Some employees cannot afford to retire or are just plain afraid to retire. Age 65 is now just another year in an ongoing career, and retirement has no set time frame.
The reasons people are extending their work lives are varied. For some individuals, it is not a matter of choice but rather survival. Many Americans do not have sufficient funds to support retirement and therefore must keep working. Others find the interaction and engagement with co-workers to be a major benefit of continuing their jobs. Many people experience a feeling of worth and self-esteem resulting from workplace roles. Finding such recognition outside of the working world may not be easy.
Staying in the workforce past traditional retirement age will have broad implications for employers, younger workers and the economy. Here's a look at how delayed retirement is likely to impact the workplace:
Younger workers may have fewer opportunities. When existing employees stay on the job longer there will be fewer opportunities available for younger workers. In an already tight job market this could prove frustrating to younger job candidates who are forced to wait in the wings. In some cases there may be enough space for older and younger workers to work together, and both may benefit from mentoring efforts. But if there is room for only one, employers may have to choose between retaining an older worker and hiring a younger one.
Challenges as younger supervisors manage older workers. Not all older workers are comfortable with reporting to someone significantly younger. New bosses tend to come with new ideas and changes that can be met with resistance from the existing staff. It is important that older employees and younger manager work together and learn to communicate effectively if they hope to make this situation a success. Progress will require sensitivity, trust and mutual respect.
Corporate culture conflicts. It is not uncommon for companies to have to reinvent themselves due to changes in the competitive landscape or economy. Long-term employees have generally adapted to the existing corporate culture, but how will they fit in if the business needs to go in a different direction? Companies have to be fast on their feet to survive and cannot afford to be slowed down unnecessarily. Older workers set in their ways can make a difficult situation even more challenging.
In addition, older workers tend to have different motivations in the workforce. While younger employees are driven by money and the ability to rise in the corporate ranks, older workers often want more emotional rewards, such as feeling needed, learning new skills and contributing to the common good. If you want to get the most out of employees, you need to speak their language and understand what makes them tick.
Additional costs of maintaining older workers. Health care expenses are on the rise, and older employees often cost companies more to provide coverage. But on the flip side, older workers do not have dependents because their families have largely been raised, so that cost is eliminated. But it's still not cheap to provide for the insurance needs of elderly workers.
More from U.S. News & World Report:
MORE ON MSN MONEY
VIDEO ON MSN MONEY
The money that I have paid into Social Security, plus employer contributions, adding simple interest over the last 40+ years, placed in an individual retirement account would have yielded me nearly $1M today. Since the government, both repubs and dems have chosen to steal that money for other purposes I will probably be homeless when I do reach 66 with a few thousand dollars per year in Social Security benefits, if any.
Laid off at 55 - 59 in May and still badly- horribly underemployed last 2 plus years.
Sorry but no hope other than living to age 62 and grabbing the early retirement I am entitled to.
Man my "Dorian Gray" moment came way too fast!
I am no fool thinking I can work or WANT to at 66 or more!
How do I even know I will make 62?
So there is my logic and what happens at that time happens and as Marines state - You Improvise- Adapt- and Overcome!
Its going to be all about moving to lower cost of living area with affordable housing (Buffalo NY- Ok thats my choice -go find your own-they are out there) and getting some part time $ to supplement (probably in my new role as a low paid no benefits security guard and thankful for it after so much rejection and no response to hundreds of resumes sent).
Sorry for the length- ya still with me?
Honestly as we come upon decision time its more about lifestyle than age.
Have a plan-thats a huge plus.
My wife and I will get through- There is no other choice.
Get use to reading why working until you drop dead is the in thing.
I am still watiing for Hooters to call me back.
At Universities and many other public employers, elderly people are retiring, and then immidiately being rehired as independent contractors. Collecting not only their State PERS, but another full salary that could support a young family. The practice cannot be stopped in the private sector, but should be stopped in the public sector.
In Oregon, we have a Sheriff who retired collecting a State pension of $8500 per month, then was immediately rehired and collects a new Salary of $7500 for a grand total of $16,000 per month. The practice is piggish and downright rotten. If this massive practice was stopped, it could fix many of the unemployment problems facing America right now!!!!!!!
I have already reconciled to myself that social security will not exist when I'm able to collect it. I've never depended on anyone, especially the government for any support. If my mentor, Warren Buffet can work past 65, I sure as well can. And while I have my 'toys' that I upgrade or trade in from time to time; A Donzi 60' boat, 2 Natural Art surf boards, a ton of fishing & dive gear, I have other, much more important reasons to keep working.
1- To insure my wife & kids will have proper medical insurance through out their lives.
2- To insure my wife will have everything she needs when I depart this world.
3- To insure the work we started in our community with many charitable organizations will continue well into the future after we're gone.
Besides, those of my peers and friends that have retired without a active lifestyle are now gone from this world; social security didn't save them- you have to do that YOURSELF !!!
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.