Previous month:
August 2021
Next month:
October 2021

September 2021

Numbers Don't Lie

Business-2253639_1920There are two COVID-inspired phrases that have been kicking around of late: "The Great Resignation" and "The Great Retirement." The two phrases are inter-related but very different.

"The Great Resignation" generally refers to workers who have exited the workforce, almost entirely by choice, during the pandemic. The reasons for resigning from a job are varied: Some workers are simply fed up with low wages, others (mostly women) cite issues with child care, others don't like menial work, and still others may not want to return to a physical workplace after working remotely from home. Whatever the reasons, the outcome is the same: American workers have left traditional work in droves, accounting for millions of open jobs and "Help Wanted" signs everywhere.

"The Great Retirement" overlaps with "The Great Resignation" in the sense that a considerable percentage of older workers may have decided that the pandemic was the right time to resign from their jobs. Rather than continue to work in traditional jobs, these older workers chose a number of different paths, such as part-time work, freelance work or "gig" assignments, volunteer work or some combination thereof. Some older workers may have decided to stop working altogether and retire.

About a year ago (August 2020), the Schwartz Center for Economic Analysis at the New School looked at some numbers and they turned out to be pretty astonishing:

  • From March through June 2020, 2.9 million workers ages 55-70 left the labor force, 50 percent more than the 1.9 million older workers who left the labor force three months after the Great Recession began in 2007.
  • Of the 2.9 million older workers who left the labor force, the majority (2.4 million) lost their jobs between March and June. The other 500,000 were already unemployed in March.
  • Between March and June 2020, 38 percent of unemployed older Americans gave up looking for work and left the labor force.

According to the Schwartz Center, "Several indicators show 2.9 million older workers who exited the labor force are unlikely to return. ...Under normal economic conditions, older workers who leave the labor force due to layoff are unlikely to re-enter the job market and face having to retire earlier than planned. ...Additionally, older workers who lose their job take nearly twice as long to find a new job compared to young workers. Even if jobless older workers find a new job, they can expect their new wages to be 23-41% less than their previous earnings."

One year later, in August 2021, an article by Tammy La Gorce in The New York Times confirmed that things haven't changed much for these older workers. La Gorce writes that "retiring during the pandemic has inflicted two traumas...most felt they were forced out of work before they wanted to go" and the majority "were financially unprepared." Teresa Ghilarducci, a professor of economics and policy analysis at the New School for Social Research, told La Gorce, “A lot of people were pushed out of their jobs... It used to be that employers would let the ones they just hired go first in a recession, but this time older people who have been in their jobs the longest have been hit hardest.”

So "The Great Retirement" may turn out to be not-so-great for millions of older workers who didn't intend to retire at all. Instead, many have been involuntarily retired from a job they intended -- and needed -- to keep. The obvious reason may have been the pandemic, but the less obvious reason was that some employers used the pandemic as cover to pare down their employee ranks. The most vulnerable workers, the older ones, were the first to be let go. Numbers don't lie.

HappilyRewired.com is a Wearever Top 20 Senior Blog and a Top 75 Baby Boomer Blog

Image by Gerd Altmann from Pixabay

Mockup2

 

New Book Shows How World War II Helped Launch "Boomer Brands"


Not So Funny

Dan-cook-MCauAnBJeig-unsplashI cheered when I read well-known aging expert Ken Dychtwald's recent article for AARP entitled "Ageism Is Alive and Well in Advertising." In it, Dychtwald uses several excellent examples of "Ageist" vs. "Respectful" ads, largely created by marketing agencies for their clients. As you can intuit, the "Ageist" examples debase seniors in a variety of ways, often ridiculing their age and negatively portraying them. This is not an occasional transgression -- it is an all-too-common practice among ad agencies, typically peopled by younger generations, who routinely make fun of the 50-plus crowd. I know, because for a time I worked in a large ad agency where I was clearly an elder statesman in my fifties.

In the article, Dychtwald writes that "advertising is still far too often out of sync with the reality of today's older, more seasoned buyer." He quotes Chip Conley, founder of the Modern Elder Academy, who agrees: “Many ads are viewed by the older population as stereotypical and patronizing. Most advertisers receive a failing grade in their efforts to understand and relate to older adults.”

As Dychtwald cites in his article, ageism in advertising is not a wise marketing strategy, because the 55-plus audience controls 70 percent of all personal wealth in the United States, according to a survey by the Federal Reserve. What's more Boomers resent it -- in a 2121 AARP survey, 62 percent of consumers age 50-plus agreed with the statement, "I wish ads had more realistic images of people my age." Nearly half (47 percent) agreed that "ads of people my age reinforce outdated stereotypes." That doesn't bode well for advertisers who continue to propagate ads that bash Boomers.

I wrote about this very issue exactly two years ago in my post, "Marketing the Old Age Myth:"

As a retired marketing professional, it is especially painful for me to see how today's marketers characterize older Americans. As I watch television or flip through magazines, I notice ads that incessantly pitch medications to the elderly, poke fun at aging or portray anyone with gray hair as a doddering, incompetent sedentary fool.

Here we are two years later and, as Dychtwald points out, things haven't gotten all that much better. Thankfully, Dychtwald writes, there are some marketers who are more enlightened today and treat seniors with respect. But not enough of them do so. That isn't just bad for the advertising business, it's bad for our society in general. 

HappilyRewired.com is a Wearever Top 20 Senior Blog and a Top 75 Baby Boomer Blog

Photo by Dan Cook on Unsplash

Mockup2

 

New Book Shows How World War II Helped Launch "Boomer Brands"


Trend Awareness for Boomers

Direction-1033278_1920Boomers contemplating retirement (or some version of it) need to be aware of various trends that might shape their decisions about working, finances, health and even where they live. Catherine Siskos, editor of Kiplinger's Retirement Report, discusses five key trends in a special section inserted into THE WEEK (Sept. 10 - 17, 2021). These trends are part of an article that addresses how this decade is unfolding and includes some forward-looking financial investment possibilities. This special section is well worth reading.

Here are the five trends affecting retirement that Siskos discusses in some detail:

  1. "Flexible work, at a price." The reality is that older workers may be willing to trade a higher salary for flexible work hours. Working part-time or on a contract basis could be a desirable if less lucrative alternative to permanent, full-time employment.
  2. "Shrinking benefits." Social Security benefits risk being reduced in the future because of a current projection that the Social Security trust fund will be exhausted in 2034. The age for claiming full retirement benefits continues to go up, with those born 1960 or later affected the most. In addition, claiming Social Security benefits too early results in a permanent cut to your monthly benefit payment.
  3. "Semi-privatized Medicare." Siskos writes that Medicare "could run short of money as early as 2026." Congress is struggling to come up with a solution.
  4. "A tech revolution in care." Advances such as smart home technology, remote monitoring, and assists to health care by Artificial Intelligence could help reduce health care costs and increase the efficiency of health care providers and caregivers.
  5. "Climate disruption." Retirees who are thinking about where to live in their older years need to carefully consider the impact of climate change. For example, the popularity of the South and West as retirement destinations needs to be balanced against the effects of global warming.

It is somewhat disconcerting to realize that we have little direct control over these trends, except perhaps for the first one. However, wise Boomers can assess their own situations and determine how best to deal with each trend. For example:

  • With the aid of your financial adviser, you can come up with a plan that reduces expenses and increases income to potentially offset the impact of a cut in Social Security. This might include some combination of part-time work, budget tightening, reviewing your investment strategy and planning to draw down your IRA/retirement savings at the appropriate time.
  • With the likelihood that health care costs could play a significant role in your budget, you may need to consider supplemental insurance to Medicare and/or long-term care insurance. You might also consider looking into the cost of assisted living or continuing care retirement communities to determine if they are feasible future options.
  • When it comes to "climate disruption," it would be smart to realistically evaluate where you live now and where you may want to live in the future. While climate is just one factor in remaining in your current home or relocating, it is increasingly important.

Now is the time for Boomers to take the necessary steps to protect their retirement/"rewirement" years.

HappilyRewired.com is a Wearever Top 20 Senior Blog and a Top 75 Baby Boomer Blog

Image by Gerd Altmann from Pixabay

New Book Shows How World War II Helped Launch "Boomer Brands"

 


New Book Shows How World War II Helped Launch "Boomer Brands"

Mockup2I'm excited to announce the publication of my new book, WORLD WAR BRANDS: World War II and the Rise of the Modern American Brand. This unique book takes a fresh look at the impact of World War II on America from a marketing perspective.

In this book you'll learn:

  • How Coca-Cola, Disney and other great American brands played an integral role in World War II
  • Why some American brands chose to do business with Nazi Germany
  • How television influenced the rise of the modern American brand
  • Plus, see 38 vintage ads that reflect the wartime economy.

The post-war economy led to the rise of the American middle class and spawned a new generation known as "Baby Boomers." The war fueled strong economic growth that turned the country into a major global force. Post-war America became a bubbling cauldron of scores of inventive, innovative brands. When television came along, marketing those brands rose to a whole new level.

WORLD WAR BRANDS covers it all. Included are many stories about some of the best-known brands of the '40s and '50s. These are the brands Boomers grew up with, so this book is an adrenalin shot of nostalgia!

Kirkus Reviews calls WORLD WAR BRANDS "a convincing history about the role of World War II in developing brand consciousness among consumers in the United States." Sherry Tuffin, a reviewer for Reedsy Discovery, gives the book five stars and writes, "After reading WORLD WAR BRANDS you may never look at your favorite brands in the same way. What do I think of this book? In the words of Tony the Tiger, a brand superstar, 'It’s Gr-r-r-r-r-eat'!"

WORLD WAR BRANDS is available in paperback and eBook formats from all major booksellers.

Read a free sample chapter here.