The Retirement "Boomerang"

OnaWhim Boomerang-1027826_1920As you might expect, the concept of retirement is not for everyone. Boomers today are much less likely to traditionally "retire" than past generations. In fact, almost 40 percent of workers age 65 or above who retired "boomeranged" back to work, according to a RAND Corporation study. The challenge is that older workers often want to change careers after fifty or so years doing the same thing -- so when they return to work, it could be to a new "second career."

Author Chris Farrell has a good way of looking at it -- as a "sabbatical." In an interview in Forbes, he says, "When we think about retirement as a sabbatical, people are going to retire, take a break and start thinking about what they want to do next. That hopefully will be incredibly liberating. It’s a wonderful idea that you take a year off, recharge and rethink."

Farrell advises those wanting to return to work focus on their skills instead of their job title. While you may have worked in a particular career all your life, in your second career, you may be better off evaluating your personal skill set and pursuing a completely different line of work. Reinventing yourself -- and taking some time to explore what you enjoy and what you are good at -- may be exhilarating. To the extent that you are financially secure, you can even pursue something because you love it, not because you intend it to produce income.

I can totally relate to this perspective. Both my wife and I reinvented ourselves after professional careers. We followed our passions and did something different for our second act. She was a sales professional and became a dog groomer because she loves working with dogs. She worked in her own mobile dog grooming business for seven years and generated income. Then she stopped grooming for money because it was too physically strenuous. Now she grooms when she wants just because she enjoys it, as an unpaid volunteer at an animal shelter. I ran a direct marketing agency, but I always had a love for writing. Now I'm a freelance writer and I work when I want. Some of the writing I do generates income, and some I do just because I enjoy it.

One of the things my wife and I had to learn during our boomerang back to work was that the value equation is different. In our previous professional careers, our perceived value was based on how much revenue we brought in. That monetary value was important to our self-image. It took a while to realize that value doesn't always have to be related to money. Now we are more comfortable with the notion that self-worth isn't based on financial and material assets alone. In fact, we both get a great deal of satisfaction doing things that do not directly result in generating income.

The retirement boomerang is a common condition for Boomers. Don't be surprised if it happens to you.

Image: Pixabay.com

Read about the brands you loved as a kid in the book, BOOMER BRANDS


Get Thee to a Financial Planner

Financial-3207895_1920 MusingsI often write about Boomer issues that relate to working past the traditional retirement age, including how to find inspiration for what to do in your second career. I rarely tackle retirement-related financial issues because that is neither my area of expertise nor my topical interest. But I feel compelled to give any reader of this blog a piece of personal, heartfelt advice: If you're approaching the second half of your life and you haven't yet engaged a financial planner, do yourself a favor and get one NOW.

My wife and I engaged a financial planner in our mid-thirties. It was one of the smartest moves we have ever made. With that person's counsel, we have been able to make wise financial decisions regarding budgeting, investments, insurance, purchasing and selling homes, paying for college, and retirement. In combination with a CPA and an estate attorney, the financial planner has also helped us with tax and estate planning.

It is never too late to get a financial planner. As CFP Casey Weade writes for Kiplinger, a financial planner becomes all the more important as we approach our retirement years: "For most people, problems, questions and opportunities are more likely to crop up as their goals change from accumulating money to protecting it. And that usually happens five to 10 years before retirement."

While professional Boomers may be tempted to handle financial planning themselves, Do-It-Yourselfers (DIYers) lack objectivity and broad knowledge of investments. Weade says, "An adviser can help retirees avoid ill-timed investment losses that could devastate their retirement plans, offer guaranteed income options to those who want reliable payments, and discuss the best 401(k) and IRA distribution choices. An adviser also can offer advice on Social Security income options that DIYers often don’t know about." As for DIY investing, Weade writes that "your investment strategy should match your overall financial plan and long-term goals. Too often, self-investing leads to over-concentrating on the tools being utilized rather than the ultimate goal you are trying to achieve."

Boomers are living a lot longer than our parents did, so making smart financial decisions that protect us in our later years is critically important. What are you waiting for? Get thee to a financial planner!

Image: Pixabay.com

Read about the brands you loved as a kid in the book, BOOMER BRANDS

 


Making Sense of the Retirement Transition

Musings Wood-3041024_1920More and more experts advise those closing in on retirement to view it as a transitional time. An article appearing on NextAvenue.org suggests that retirees should plan on a longer transition time than they expect:

"It could take months or it could take a few years for you to finally feel comfortable in your new skin. It’s completely natural and understandable for this transition to take a long time. After all, you were involved in the world of work for decades and those habits won’t melt away instantly. ... Instead of commuting to an office, commute to your workbench or to a class at the local community college. Embrace the change while diving into what makes you unique."

The article also encourages retirees to "take a moment to breathe":

"...take a week or two to relax before you jump into your new routines. By taking a mini-vacation first, you’ll be better prepared to approach your new life with a clear mind that’s well-rested and ready for the challenge. The way a honeymoon marks the transition from single life into marriage, this pre-retirement breather period marks another (equally) important transition in your life."

A key point in the article is the need to "build a strong mental foundation for change." This includes building a strong identity, a strong social network and a strong mission. "Mission" may not be a word you associate with retirement, but here's some excellent advice:

"One of the biggest fears people have about retirement is that they’ll lose the feeling of being useful. Figure out your mission, whether it’s helping look after grandkids or mentoring local teens on their career paths. Some find that learning a new language or hitting their list of must-see travel destinations around the world make wonderful missions, too!"

You have the ability to reinvent yourself as you enter life's second stage, but you don't have to rush into it. That may be hard, because our society is so focused on instant gratification. Still, if you take time to assess who you are and what you need to be happy, the transition should be a lot easier.

Image: Pixabay.com

Have you heard about the new book, Boomer Brands?


Proving Age Discrimination in Employment is Too Hard

OntheClock Woman-1246587_1920A recent article in The New York Times got me fired up again about age discrimination in the American workplace, particularly when it comes to hiring and firing practices. I've written about this issue before, providing some links to useful online resources.

The Times article highlights the serious nature of the problem for workers over 50 years old. As the article points out, recent court decisions in age-related anti-discrimination cases have made things harder, not easier, for older workers. It's largely because of the way the federal ADEA (Age Discrimination in Employment Act) works, or doesn't work. As usual, when Congress writes a law, it carries with it loopholes -- and there are plenty of them in ADEA. Proving an employer uses age discrimination to hire or fire someone age 50 or over is difficult, and the legal burden is on the individual to pursue a case that can be very costly. What's more, doing so basically blacklists that individual in the job market.

The Times article cites this sobering fact: "More than half of workers over 50 lose longtime jobs before they are ready to retire..." along with this even more sobering fact: "On average, a 54-year-old job hunter will be unemployed for nearly a year." The article also reveals the experiences of some older job-seekers who faced obvious age discrimination. Some of the cases are startling in terms of what older workers are told by prospective employers; one of them reportedly said, "We are not looking for old white guys." Thankfully, that particular employer, a restaurant chain, was sued and agreed to pay a $2.85 million settlement.

The good news is some organizations are starting to fight back against age discrimination, even if individuals cannot afford to do so. According to the Times article, the Communications Workers of America, a union, has filed a lawsuit accusing hundreds of major employers of "systematic age discrimination in hiring based on targeted online advertising." They are looking at the possibility of class-action lawsuits. Still, a recent court ruling demonstrates an uphill battle: The court found that "recruiting practices that have the effect of screening out older applicants — what is known in legal terms as having a “disparate impact” — did not violate the law."

You would think that, with low unemployment and "Help Wanted" signs proliferating that older workers would be welcomed by employers. Sadly, that is not the case.

Image: Pixabay.com

Have you heard about the new book, Boomer Brands?


Financial Security in Retirement is Important, But...

Musings Man-505353_1920There are so many sources of information that talk about the financial aspects of retirement. Of course, nothing could be more important than being financial secure when you retire. But what about psychic security? One of the most challenging pieces of the retirement puzzle is finding your true self, especially if you have spent decades working in a single profession. Making the transition from a career into a whole different way of life -- one that may not be centered around full-time work -- can be disruptive and even painful for the ill-prepared.

That's why I like the assessment provided by Michael Rubin in his article for The Balance, "4 Non-Financial Keys for a Happy Retirement." Rubin discusses these four elements in detail:

  1. Work - Rubin makes the point that work in retirement can be a gratifying experience if it is voluntary. He writes "studies have shown that people who voluntarily continue to work, even just part-time, past the age of 65 are happier than their full retired peers."
  2. Relationships - Moving on from work also means moving on from work-related relationships. Maintaining relationships in retirement is essential to avoid social isolation. Rubin indicates "recent studies have suggested that loneliness can result in higher risk of developing Alzheimer's and other dementia-related diseases."
  3. Keeping Busy - Filling time when there is no full-time job to go to can be daunting, but busy retirees are generally happier. "One study showed that the happiest retirees engage in three to four regular activities and the retirees with the busiest schedules tended to be the happiest," writes Rubin.
  4. Staying Active and Healthy -  As Rubin notes, "in a recent study, having good health was outranked financial security as the most important ingredient for a happy retirement, but the two are more intertwined than you might think." One key point is that one's health in retirement directly relates to medical expenses, which can be significant for less healthy retirees.

Rubin's article puts retirement into perspective by emphasizing the non-financial aspects of a happy retirement. Food for thought.

Image: Pixabay.com

Have you heard about the new book, Boomer Brands?


Acknowledging an Aging Population

OnaWhimA United Nations estimate projects that between now and 2050, there will be an increase in the age 60-plus population in every country in the world. By 2050, those age 60-plus in the U.S. are likely to be as much as 25 to 30 percent of the total population. In 2017, the U.S. birth rate dipped to a 30-year low. With people living longer, the percentage of older Americans is sure to accelerate.

These statistics, while long range, are evidence that the world's population is aging. This means that businesses and governments will be forced to acknowledge this reality and provide programs, goods and services designed for the older generation. We Boomers may miss out on the big changes of the coming demographic revolution, but we are beginning to see glimmers of hope and encouraging examples that our own society is acknowledging an aging population.

One glimmer of hope is in the American job market. While a great deal of ageism still openly exists, the high number of jobs available is forcing American employers to reconsider their hiring practices. For example, AARP and McDonald's just announced a collaboration in which McDonald's will post all of its U.S. job openings on the AARP Job Board, and it will pledge to value the contributions of older workers. Why? Because McDonald's is trying to fill some 250,000 summer jobs available.

Screen Shot 2019-05-17 at 11.09.20 AMAnother promising movement is in the food industry. Beyond Meat, which offers plant-based meat substitutes and positions itself as "the future of protein," recently filed an IPO. The company is offering hamburger and sausage plant alternatives that could help reduce meat consumption, something Boomers especially need to do as they age. In addition, one of the Beyond Meat founders has introduced a new non-dairy, plant-based milk called Perennial, which is "smartly crafted for body and brain over 50." Other non-dairy products that indirectly target seniors who want to or need to reduce dairy consumption include varieties of oat, almond and soy milk.

Will other employers follow the lead of McDonald's? Like Perennial, will other companies recognize the potential of creating products and services specifically for an aging population? Let's hope we will see a rapid acceleration of this kind of activity so today's Boomers can benefit from it.

Have you heard about the new book, Boomer Brands?


Deciding What to Do Next

Musings Screen Shot 2019-05-16 at 11.23.50 AMWhether you call it retirement, "rewiring," or your "second act," if you're over 65, you may be thinking, "What's next?" This is a particularly vexing question as it relates to a long career centered on a particular industry or discipline, but it is just as profound when you consider potential life choices. Your second act may not be just about what you do with your time -- it may also involve where you do it and with whom.

That's why I think it makes a lot of sense to start thinking about life's next stage even before you get there. My colleague Nancy Collamer, a "second act" coach, has some great advice to help you navigate new territory. She advises the following:

  1. Complete a self-assessment.
  2. Use a decision-making tool.
  3. Talk to people.
  4. Write things down. Take walks. Repeat.
  5. Try things out.

This is smart counsel, delivered in a logical sequence. The self-assessment will help you identify "what you want, what you do well and what you find meaningful." A decision-making tool will guide you in determining which of the options available you should pursue. Talking to advisors and friends comes next, because "they will challenge your assumptions, support your decisions and connect you with key resources or people that could prove invaluable when making your final analysis." Then you should put it in writing -- think about what you wrote down -- and refine it. According to Collamer, "it’s amazing how the act of writing brings a level of clarity to the decision making process that is impossible to achieve by keeping your thoughts in your head." Finally, just do it -- "you’ll never make up your mind about a career move until you start trying things out in small ways," writes Collamer.

Nancy Collamer offers additional guidance, as well as links to helpful resources in her article. Read it here: https://www.mylifestylecareer.com/how-to-choose-a-perfect-second-act-career/

Image: Stuart Miles, freedigitalphotos.net

Have you heard about the new book, Boomer Brands?


The Fight Against Ageism

Musings Woman-208723_1920I've written a number of blog posts about ageism and its impact on Boomers. Ageism happens in both obvious and subtle ways. The older you get, the more you may notice that you feel either overlooked by society or even invisible in their eyes. You are not being paranoid. The messages and signals that surround you are incontrovertible.

  • Younger people may be dismissive.
  • Retail store clerks may call you "honey" or "dear."
  • People demonstrate impatience and frustration if you seem to have trouble hearing or understanding them.
  • Finding clothes to fit your older body is challenging.
  • Advertising on television is largely geared to the young, and those ads that include "gray hairs" are inevitably pitching drugs for serious ailments.
  • Your employer thinks nothing of letting you go because of your age, despite your years of service, experience and expertise.

According to an article in Business Insider, three million older workers can't find high-paying jobs because of ageism.

These kinds of indignities are suffered on a daily basis by those over the not-so-old age of 65. It's ageism, and it's discriminatory.

We need more people, organizations, and politicians fighting against ageism. I've mentioned an organization called Respectful Exits in the past. Respectful Exits works with employers to change the view of older employees by instituting a "Longevity Agenda." AARP offers a special section on its website called "Working at 50+" that has information for older workers.

You should definitely check out a new ageism clearinghouse started by Ashton Applewhite, an anti-ageism activist. It's called Old School and it is a free ageism resource center with tools, books, blogs, podcasts and more.

Boomers are some 74 million strong. The more we all speak out against ageism, the more our society will begin to respect us. Everyone gets older -- and ageism will happen to all of them someday if we don't stop it now!

Image: Pixabay

Have you heard about the new book, Boomer Brands?


Working Because We Have To

OntheClock Man-111302_1920
If you're over the age of 65 and still working, you are in good company. As reported by Bloomberg, in February 2019, the participation rate of 65-plus workers in the labor force has reached 20 percent for the first time in 57 years. Paradoxically, the Boomers who are most likely to be working are more educated, better off, and healthier, while less educated, working-class Boomers are struggling to remain employed. Those individuals with less than a college education participate in the labor force at a rate of about 10 percent.

Working after the traditional retirement age is becoming the norm for more and more Boomers. While a good percentage of Boomers want to work, many have to work for economic reasons. It is estimated that even the maximum Social Security monthly payment, which a Boomer can draw beginning at age 70, will only replace at most half of one's pre-retirement income. It's a generally accepted fact that, after Boomers stop working altogether, they need about 80 percent of their pre-retirement income to live, according to the Bloomberg report. As I've written in the past, the retirement savings accumulated by most Boomers puts them in a precarious position, especially given the reality that Boomers are living much longer than previous generations. Because of the 2008 recession, Boomers may have lost a significant portion of their retirement portfolio and it has taken years for their savings to recover.

Thankfully, work options do exist for Boomers, even if they are vulnerable in their current positions. A robust economy means far more jobs are available, although a large percentage is, admittedly, in lower paying positions. Still, full-time, part-time, and self-employment opportunities are available. "Gigs," or contract jobs, are also plentiful, and many of them enable Boomers to work from home on a flexible schedule if desired.

As Boomers are well aware, life is all about compromise. If you have to work and you're over 65, you can probably get a job. You just might have to lower your expectations.

Image: Pixabay

Have you heard about the new book, Boomer Brands?


Is "Early Retirement" a Myth?

Musings Baby-boomer-442252_1920
Early retirement -- generally defined as retiring from the traditional workplace before the retirement age of 65 -- is an idyllic-sounding notion. For most Boomers, it is also next to impossible. Sure, you'll read about those senior executives or business owners who have managed to amass enough wealth in their forties, fifties or early sixties to contemplate leaving the workplace behind. It happens -- but rarely.

Still, is early retirement a myth? Well, not necessarily. Part of it depends on exactly how you define "retirement." It may not mean stopping work altogether, but instead changing your way or working, or even your perception of work. You could, in fact, retire early from one career and start an entirely new career. Or you could find a creative way to retire early from your current job and patch together a variety of stimulating opportunities that still provide a reasonable income. The fact is, retiring early may be a realistic goal for you -- but one that cannot be achieved without a really good handle on your financial situation.

Writing for The Balance, Rebecca Lake identifies "six signs" that are legitimate indicators you may very well be in a position to retire early. They are:

  1. You're Debt Free
  2. You've Estimated Your Retirement Needs
  3. You've Saved for Retirement in Multiple Pots
  4. You've Covered Your Insurance Gaps
  5. Your Children Don't Rely on You Financially
  6. You're in a Retirement Frame of Mind

Read Rebecca's article for some valuable insight into each of these signs. You may not see all of them in your own situation, but each is worthy of some careful thought before leaping into the potential abyss of retirement.

Fortunately, I saw enough of these signs to consider early retirement. My wife and I were both marketing professionals. I owned a direct marketing agency. We decided to retire from our careers in our late fifties. We combined early retirement with a relocation from the expensive Northeast to the less expensive South. At the same time our daughter went to college -- we saved for that during our working years.

When we relocated, we decided to start a small service business together, ran it for seven years, and then sold it. It kept us busy and generated an income that was supplemented by retirement savings. Starting to draw Social Security at full retirement age helped us financially, as did going onto Medicare at age 65. Now, I'm a part-time writer, and my wife volunteers and is a caretaker for her mother. We never viewed "retirement" in the traditional sense -- to us, it was more about going through phases of life. Some would certainly define what we did as retiring early, while others might say we just transitioned into doing something different.

Retiring early may or may not be for you -- but it's really about how each of us defines the concept of early retirement.

Image: Pixabay

Have you heard about the new book, Boomer Brands?