Retirement Revisited

Retirement Revisited
Many Seniors Look at Their Future in New Ways

Fall 2008

You'll stay at your job until you're 62, then toss your alarm clock out the window, spend sun-filled afternoons on the golf course, and otherwise savor a well-deserved, relaxing retirement. 

Sound too good to be true? It probably is. A recent study by AARP found that among workers at least 45 years old, 65 percent now say it is likely that they will delay retirement and work longer. Nearly seven in ten (69 percent) say that they anticipate spending less in retirement than they had previously planned. 

Researchers point to a variety of culprits to explain these statistics. For instance, mature workers today have to factor increased life expectancies into their retirement plans. They're also grappling with the rising cost of food, utilities, and healthcare. What's more, many older Americans watched their nest eggs shrivel when Wall Street took a nosedive earlier this fall. "The economy right now is painful for all ages, but especially for older workers because they have less time to recover," explains Deborah Banda, state director of AARP Massachusetts. "We know that the economy is cyclic, but if you're an older worker, you might not have time to wait for the cycle to go back to an uptick."
 
As a result, people are thinking about retirement in new ways. Many mature workers are deciding to stay at their jobs longer than they intended. Other older Americans are coming out of retirement, looking to earn a paycheck once again. 

If you need help navigating these uncharted waters, Banda suggests checking AARP.org for tips on re-entering the workforce, as well as for general advice about making it through tough economic times. Job-listing web sites specific to retirees, such as RetirementJobs.com (based in Waltham) and RetiredBrains.com, can help, too, as can your local Council on Aging.
 
"A lot of people have been feeling a decline in their economic status for awhile now, and it can be upsetting," says Nava Niv-Vogel, director of the Belmont Council on Aging (COA). Fortunately, she adds, the COA staff can help seniors find the support they need, whether that means tapping into a program for fuel assistance, dusting off a resume, or even retraining for a new position.
 
For instance, organizations like Operation A.B.L.E. of Greater Boston can help mature workers get back to work. For over 25 years, Operation A.B.L.E. (Ability Based on Long Experience) has assisted older workers with job coaching and counseling, occupational skills training, job search workshops, mock interview practice, job postings, and advocacy. In particular, many job seekers today turn to Operation A.B.L.E. to beef up their computer skills. 

"It's a very scary time for people who thought they were going to retire and realize that they absolutely cannot retire," says Joan Cirillo, executive director of Operation A.B.L.E. of Greater Boston. "Plus, we're seeing more and more people who planned well and took retirement, but now have a shrinking portfolio. That's the biggest driver for them wanting to go back to work." 

Sidney, a 65-year-old from Boston, landed an office job at a building supply company after completing a training program at Operation A.B.L.E. Before she reentered the workforce, Sidney was having a hard time making ends meet. Now, she's not only working, she's also attending classes at Roxbury Community College, majoring in computer science. "The people at Operation A.B.L.E. helped put me back on track," Sidney says. "They helped me improve my skills and my professionalism so I could get a job." 

It's a similar story for Bill (who asked that his last name not be used), who left a career in mechanical engineering so that he could care for his ailing father. When it came time to re-enter the workforce, Bill realized he needed to develop a new skill set to compete in today's job market. He retrained, and now, at age 66, he's working full time (plus moonlighting three nights a week) as an IT administrator and computer instructor. "Expenses are high, especially healthcare, and I really don't think I'll be able to stop working. In this marketplace, I don't see that happening," Bill says. "But, then, I'm a little bit addicted to work, too. I really enjoy what I do."
 
It's likely we'll be seeing more and more older Americans in the workforce, thanks to both a sour economy and changing national demographics, Cirillo says. Some 76 million baby boomers are poised to retire, while only 48 million Gen Xers are coming up through the ranks.
"That leaves a worker gap of 28 million," she explains. "Employers are turning to mature workers to fill that gap because they have a vast amount of experience. Seniors are unflappable with customers, and can be very polite in problem-solving mode. They're reliable, resourceful, and full of institutional knowledge. For all those reasons, the older worker is becoming more and more attractive to employers."