That’s how it was; it’s a lot different now. Some stories about Americans working past retirement are here. Though the average age for retirement is about 63, it is beginning to change, at least in the way “retirement years” are spent. Baby boomers retiring in very large numbers are making serious changes to the concept of retirement and Golden Years. Who are “baby boomers?” After World War II several English-speaking countries including the U.S., U.K., Canada, Australia, and New Zealand experienced an unusually high spike in the birth rate. Now, anyone born in the years beginning in 1946 and ending in 1964 is considered to be a baby boomer. The first one to receive U.S. Social Security retired early in 2008. There are a lot more on the way bringing many changes to the world of working later in life.
Baby boomers have been criticized for many things, including being vain and wishing to always be young, and to think themselves better than most (many times this is true as in education and achievement). As in every group facing their later years, however, many do not have enough money to see them through the rest of their lives. Almost everyone has discounted how much money they must have if they stop working for whatever reason. Many people do not realize that, as many experts agree, there will be medical techniques available by the year 2100 to enable some people to live at least to age 150. That means someone is living now who could live to be 150 years old...and that’s not all. Continuing progress in the sciences dealing with gerontology and longevity will mean ever longer survival. Charles Mann addresses this issue and many related problems in “The Coming Death Shortage”, an article in the May, 2005, issue of Atlantic Monthly.
Though there are social dilemmas relating to immortality—like endlessly working seniors, 80 year-old children living at home, and a host of others—the overarching problems are in some form economic. Lack of money is already causing a lot of retirement age people to remain in the work force in one way or another.
In an article by Jennie Phipps about working after retirement, posted on Bankrate.com, a financial planner encourages people to consider starting their own business. Such a business need not be anything like General motors; very small businesses bring in a little money and let their owners do something they really enjoy doing, without an incompetent boss looking over their shoulder.
An Internet affiliate business is an ideal way for retirees to shore up their finances. This kind of business overcomes the time obstacles everyone encounters because there is only a limited amount of time available to anyone; the amount any person can accomplish by themselves is very limited. Recruiting additional affiliates multiplies individual effectiveness in this kind of business. If you set your business up correctly, it will run all the time with customers able to buy from your affiliate organization whenever they want without you ever lifting a finger. After retirement you will have a flexible schedule so you can do the relatively small amount of work required as an affiliate and you also have the rest of your life to experiment to find the best business for you. If you start your business while you’re still employed, you have the advantage of not having to depend on this business for any of your required living expenses for a few years—enough time for your sideline business to begin to be successful. Whatever stage of life you are in, insure your future by starting your home-based business, even at 70 years of age!
Some of the working past retirement stories we mentioned earlier show how different situations influence the things people do. Not everyone is strapped for cash when they stop working, but some form of economic factor is present in every situation. For example, one Information Technology (IT) specialist retired according to his large company’s schedule, but golf and tennis soon became boring and unfulfilling. When his former boss called and asked if he wanted a full-time part time job, he jumped at the chance, even with often 40 to 50 hour weeks. In addition to the extra cash, the feeling of being needed is gratifying.
Another example involves a 68 year old former travel agent who was displaced when travel fell off and her company went under. She was single with no children and faced a serious financial problem causing her to do various entry-level jobs before finding her niche as a part-time caregiver for the elderly. Her pay is nominal, but it helps her pay the bills. She enjoys her work, but she is constantly afraid of what would happen if her health fails; this is not a great way to cap off a life of work.
Right this minute the U.S. job market is in a declining period; however, there is still the prediction that skilled employees will be very scarce in the years to come. With many retirement aged boomers needing or wanting to work and employers looking for skilled workers, there are bound to be many continuing to work well into their golden years. In fact, the U.S. Bureau of Labor Statistics says 29% of those in their late ‘60s were working in 2006, compared with 18% in 1985.
The Telegraph.co.uk recently reported some comments by former cabinet minister David Blunkett regarding the U.K.’s program to support the elderly in this article. He’s addressing a problem similar to the one we have in the U.S. about how to keep some form of social security going in the face of the expanding number of older people and the declining younger people in the workforce to finance Social Security. Mr. Blunkett suggests the British should continue to work until they are no longer physically able to do so. He thinks workers should no longer feel the Government has prime responsibility to support them through their ever increasing years of retirement. Part of his plan would use programs similar to the Reverse Mortgage in the U.S. to make money available from a retiree’s home, usually a substantial part of most people’s wealth accumulation. The idea is to use an individual’s personal wealth to care for them in their older years, rather than expecting the Government to protect their assets to be passed on to various heirs. He would like to see retirees work to some extent, perhaps with more flexible schedules and increasingly part time.
The idea of retirement was first advanced in the late nineteenth century by the first chancellor of the German Empire, Otto von Bismarck. At the time, most workers didn’t live long enough to be concerned with what they might do after they quit working. A similar situation existed in the U.S. when Social Security began in the U.S. Benefits were to begin at age 65, although life expectancy in 1935 was only 61. Of course, all this has changed, particularly life expectancy; what if it does reach 150 years? Money will be an increasing problem, not only because of the anticipated large increase in life-span, but, closer to now, the significant economic problem posed by the Wall Street Journal citing recent data which suggests that fewer than 23% have savings or investments totaling $250,000 or more. This study, published by the Employee Benefit Research Institute in Washington, also says about 60% of workers have less than $100,000.
But economic issues represent only one part of the picture baby boomers are seeing when they think about retirement.
Lee Iacocca said that he flunked retirement. In a famous Fortune magazine article (June 24, 1996), the retired Chrysler executive warned, “You plan everything in life, and then the roof caves in on you because you haven’t done enough thinking about who you are and what you should do with the rest of your life.” A survey by Merrill Lynch describes some ways baby boomers expect to change ideas about retirement:
1. 76% of baby boomers intend to keep working and earning in retirement.Boomers reject a life of either full-time leisure or full-time work. Their ideal work arrangement in retirement would be these choices:
2. Most boomers plan to "retire" from their current job/career at around age 64, and then launch into an entirely new job or career.
3. Using the added years they expect, baby boomers will create a whole new life stage.
4. Baby boomers plan to be "younger" longer and to work longer.
5. Most baby boomers (65%) will stop working for pay and retire in the traditional sense at some point in their late 60s rather than at age 60 or 65.
- Repeatedly "cycle" between periods of work and leisure (42%).
- Have part-time work (16%).
- Start their own business (13%).
- Work full time (6%).
Boredom. Everybody needs a reason to get out of bed each morning. It’s best if there is something you are expected to do, like meet someone for an appointment. A lot of people believe they will really enjoy playing golf or bridge all day, every day. After a few months of no responsibility, and doing the same things repeatedly, most people start to lose interest. It’s not fun any longer.
Desire for a new career. Some people work toward a time when they can do something they have always wanted to do. They have developed a plan to provide—eventually—the wealth and time to indulge these desires. This plan includes ideas about what they want to do when they end their first career. Perhaps they have always wanted to be an artist, or a chef, or a writer. This may require training, and happily there are a lot of learning centers on the Internet. They can go back to school, learn a new skill or just increase their knowledge. With any of these choices, they are USING THEIR MIND! The AARP Foundation has two ways to help people find a new career.
1. The Senior Employment Service Employment Program (SCSEP) helps those 55 and older who need jobs find jobs.There are many correspondence courses available on the Internet and by mail-order. Local colleges in your community offer a large number of courses on just about any subject. If you are old enough, they may be free. You may also develop an interest in a hobby. Arts and crafts may be something you’ve always wanted to do.
2. WorkSearch supports those who are looking for jobs get the career placement and training they need to remain in or re-enter the workforce.
Fear of stagnation. Anything you do to continue your interest and activity will help you avoid problems associated with prolonged inactivity which usually has serious results. Two primary ones are:
1. Mental problems relating to being insufficiently occupied and experiencing feelings of worthlessness. There’s nothing you want to do, and no one needs you. It seems that you have lost all control over your life. Everything is passing by you. With nothing to do, you worry about everything constantly. All these may cause deep depression, perhaps requiring medical attention. If you stop using your mind, your mental abilities will decline. This used to be accepted as part of old age; now most mental decline is no longer considered inevitable.To avoid these problems after retirement you must develop a written plan that includes answers to these questions:
2. General health problems. Inactivity causes muscles and bones to deteriorate. You may be unable to do things you would like to do. Obesity is an ongoing national problem and inactivity encourages it. You may lose all your motivation to do anything which puts you in the position of being interested in nothing. You are just waiting to die.
- What do you want from retirement?
- Do you want a lot of time for golf, travel, hobbies, or a second career?
- How will you spend your life?
- What would you do if you could do anything you want?
There are two recent books you should read to find new ideas about what to do in your baby boomer retirement. First is The 4-Hour Workweek: Escape 9-5, Live Anywhere, And Join The New Rich, by Timothy Ferriss. This book shows how to do just what you want to do even if the timing is bad; it will get better as you go. When you decide on a radical plan at your normal employment do whatever you want without asking for permission; then ask for forgiveness for your actions if necessary.
Next, always realize relative income is more important than absolute income: If you make $2,000 a week working 80 hours you are making $25 an hour; if you make $1,000 per week working 10 hours you are making $100 an hour. Who makes more?
To give yourself more free time, start with Pareto’s 80/20 principle which says 80% of results are produced by 20% of effort. Drop the 80% of unproductive effort. Another principle that helps free time is Parkinson’s law which says a task will swell in proportion to the time allotted; cut the time to control task size. Another way to get away from useless undertakings is to go on a low information diet (similar to those who say don’t get any news to avoid negative thoughts); in this case it is to do away with time wasting functions like just reading or watching. Consider using a Personal Assistant (PA) to perform routine activities. Check the search engines for them.
The most important idea of all in this book is the notion that you don’t have to be a millionaire to enjoy the things millionaires enjoy. Read what the author says about this and do it if you have expensive tastes.
Some other recent ideas of interest to baby boomers are discussed in Free Agent Nation: The Future of Working for Yourself by Daniel H. Pink. The author says free agency is the result of several factors. One is, given a choice of how to work, seven of ten Americans would choose self-employment. Free agency is not just a style of work, it’s a way of life—a better way of life. Free agents are clear of the restraints of some mindless corporation and are in control of their own destinies. They completely define the new type of American work.
Free agency may bring the end of retirement as we know it. Its replacement is e-tirement where seniors will continue to use electronic technology to pursue work on some basis. They will be encouraged by great wealth—it is expected that baby boomers will inherit over $10 trillion from their parents. Free Agent Nation contains all the discussion and resources you need to reach the highest level of personal spirituality represented by Mazlow’s Self-Actualization.
The ideas discussed in this article will help all retirees, baby boomers or not, to achieve many things in their golden years not available before. Take the schemes you like, use them, and make a better, more satisfying life for yourself.
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