Retirement
During this course, one of my favorite chapters was 'Chapter 10: Economic Well-Being: Retirement, Employment, and Poverty'. I was astonished to learn how many seniors are economically insecure. As I read this chapter, I often thought of my mom; a woman who loves being challenged by her work and can't imagine enjoying a day of retirement until she is at the end of her life, if ever. I asked myself if there were more people like her; people that wanted to continue working not because they were financially dependent on working post-retirement, but because of their love of work. What are their options?
The Baby Boom generation is beginning to enter retirement,
and just as they have reshaped social conventions in the past, they are now redefining
what retirement means. As Hooyman et al
(2015) notes, “… the generation of workers currently in their fifties and
sixties would redefine the notion of retirement, moving by choice into new ‘retirement
jobs’ or encore or second or third careers to enjoy a sense of productivity,
social contacts, and life satisfaction,” (p 285). While this may be the future
of retirement, it doesn’t mean it is yet the definition.
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(Phased
Retirement: Another "Do As We Say, Not As We Do" Moment)
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While many of the Baby Boomers that have currently reached
retirement age are wanting to stay in the work force to prevent a loss of role
and identity, many are forced to remain in the workforce due to financial
reasons. In a national survey cited by Hooyman et al (2015), 25% of respondents
said they would have to remain in the workforce until at least the age of 80 in
order to have enough money to retire comfortably. In fact, in 2010, “the
majority of Americans (75 percent) nearing retirement age had less than $30,000
in their retirement accounts,” (Duska, 2013). Many Americans can simply not afford to
retire, and following the greatest recession the generation of Baby Boomers has
ever seen, many retirees were forced back into work after years of retirement
(Hooyman et al, 2015) (Duska, 2013) (Tacchino, 2013).
According to Rose (2010), only 17 percent of workers 65 and
older remain working for financial reasons. The majority of those that continue
working purely for financial reasons hold blue collar jobs and are from the
lower class (Hooyman et al, 2015). For the majority of those 65 and older that
are still in the workforce, satisfaction and a desire for social impact keeps
them working. “The main reason they continue to work is to feel useful, to stay
active and connected with others…” (Rose, 2010, p 38). Many retirees dread a
loss of production and a loss of role, and struggle with the abrupt transitions
of working full time to not working at all.
Phased Retirement
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(Phased Retirement)
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“Common wisdom held that after marching through their
formative decades to a different drummer, boomers would approach retirement
differently. Rather than slowing down or settling into a life of leisure, they
would step with renewed energy into new pursuits,” (Rose, 2010, p 36). Many new
retirees chose to pursue the “encore career” which provides them limitless
option allowing them control over their work. The encore career allows for “a
suite of options, including returning for project-based work, working part
time, and finding ways to marry voluntary and corporate social responsibility
activities,” (Sargent et al, 2011, p 323).
Encore careers fall into the category of phased retirement in
which retirees will finally have a transition between work and retirement;
often one that they can set at their own pace. Phased retirement allows
retirees to have a healthy combination of productivity and leisure. Many retirees
find it difficult to leave their careers, and phased retirement allows them
better financial security while allowing them to try out leisure activities,
leading to better emotional preparation for retirement (Tacchino, 2013).
"Service is rent you pay for room on this earth"
(Rose, 2010)
Phased retirement can take on many different forms,
including formal and informal. Some phased retirement may include encore
careers, continuing work for the same company, or starting one’s own business.
Some people phase into retirement by working part time, whether lowering their
hours every week, or by working a seasonal schedule. What is most clear about
the popularity of phased retirement among the newest retirement generation, is
that while most retirees no longer want to be shackled to demanding workloads
and schedules, they want the continued freedom to have a career in which they
can feel productive, engaged, and which brings meaning to their lives. (Duska,
2013) (Tacchino, 2013) (Sargent et al, 2011) (Rose, 2010).
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