On the Clock

Is Your Best Retirement Option Part-time Work?

OntheClockMore and more, Boomers who leave full-time employment want to continue to be productive in some way. It isn't just a desire to keep busy and engaged -- it is also driven by a need to supplement the income from retirement plans and Social Security.

A very attractive option for Boomers could be part-time work. Working part-time offers more flexibility, social interaction, and income that may provide a modest cushion. While it seems that most part-time work for Boomers is in the low-paying retail and hospitality industries, there are some areas in which part-time pay is significantly higher.

Alison Doyle, a job search expert for About.com, offers a helpful list of the "top 10 best paid part-time jobs." Some of the jobs, such as accountant and computer programmer, may require additional specialized education. Others, such as management analyst, may allow professionals to apply their expertise from previous positions. Other jobs, such as delivery truck driver and materials mover, could involve minimal training.

Find the list here: http://jobsearch.about.com/od/best-jobs/ss/Top-10-Part-Time-Jobs.htm


Resources for Boomers Looking for Work

OntheClockIt's no surprise that Boomers want to or need to work -- but as I've written in this blog before, finding work at 50-plus can be a challenge.

The following is a good list of a variety of resources that could be just what you need to point you in the right direction, as well as understand the implications of work over 50.

Re-Entering the Workforce - Marketable Skills After 50

An Aging Workforce: New Opportunities for Older Executives

Best Jobs for Seniors

5 Part-Time Jobs for Retirees

The Senior's Guide to Becoming a Real Estate Agent in Their Golden Years

Recruitment and Retention of Older Workers: Considerations for Employers

Aging and Mental Health: Workplace Considerations

And here's one more idea. If you think you might want to start your own business with your spouse, check this out:

https://www.amazon.com/Lets-Make-Money-Honey-Starting/dp/0996576002

 


The Baby Boomer Employee/Employer Disconnect

OntheClockOne of the issues I have explored in a number of posts is the disconnect between Boomer employees and employers when it comes to continued employment. Boomers who want to work past the previously accepted retirement age of 65 either face mandatory retirement or what they perceive as age discrimination. Those Boomers who would like to phase into part-time work may also find a lack of receptivity on the part of their employers.

One study suggests that at least some employers may be a bit more enlightened than others. The Transamerica Center for Retirement Studies has been conducting a retirement survey of workers for sixteen years. The 15th Annual Survey report (December 2014) focused on perceptions of Baby Boomer workers and their employers. Over 1,800 Boomers and over 750 companies, both small and large, were surveyed.

According to the survey report, 65% of Boomer workers plan to work past age 65 or do not plan to retire at all. In addition, 68% see themselves phasing into retirement; they plan to either continue working but reduce their hours on the job, or work in a less demanding position. Only 21% plan to fully retire and stop working, while 12 percent are "not sure."

Employers claim to be far more supportive of Boomer workers than Boomers themselves may perceive. According to the survey report, "Eighty-eight percent of employers agree that they are supportive of their employees working past age 65 and delaying retirement, including 49 percent that 'strongly agree' and 39 percent that 'somewhat agree.' However, phasing out of full-time work is a different story: "Only 48 percent of employers have practices in place to enable shifting from full-time to part-time and even fewer (37 percent) allow taking on new positions that are less stressful or demanding."

Clearly, employers are generally sending a mixed message to Boomers; while employers are apparently happy to have Boomers continue on a full-time basis, less than half of employers facilitate a transition from full-time to part-time. Bottom line: There is still a disconnect between Boomer employees and employers, leaving millions of Boomer workers to sort things out on their own.

You can download the full survey report below.

Download TransamericaRetirementStudy-15


Where Older Workers Get Squeezed in the Job Market

OntheClockTime and again, I've discussed the reality that Boomers want to or need to continue to work into their Sixties and Seventies. But a particularly interesting problem is the one faced by Boomers who have spent their lives working at jobs considered "middle-skill" occupations, including office administration, professional sales, production and repair, operators and fabricators, and skilled administration, protective and personal services. These occupations, which account for over 40 percent of all jobs, have been in long-term decline, making it especially challenging for middle-skill Boomers to maintain employment.

A recent report from the Center for Retirement Research at Boston College looked at employment outcomes specifically for older workers first observed in middle-skill jobs. If they leave a middle-skill job, are they able to find jobs in another skill level, or are they forced out of employment prematurely? What are the circumstances surrounding these transitions, and how are the workers’ earnings affected?

The heart of the problem for these workers is the following, according to the report: 

"Older workers may be particularly vulnerable to polarization; the labor market for prime-aged workers was slanted more toward middle-skill occupations when these workers were younger, and it might be difficult to increase their skills up to the high level, while low-skill jobs might involve physical labor that older, middle-skilled workers are unable or unwilling to perform." In addition, "many older workers who are forced out of middle-skill jobs and unable to find high-skill jobs may retire early, join the growing ranks of the long-term unemployed or disabled, or otherwise drop out of the labor force."

So it seems where older Americans get squeezed is if they are middle-skilled workers.

There is some good news in the report, however; older workers have generally not been hurt more than any other group, largely because older workers often prefer part-time employment, for which even low-skilled positions are acceptable. The study concludes:

"Middle-skilled workers may require unemployment benefits and other income-support programs and job training to ensure that the decline in their employment opportunities does not have long-lasting consequences, but that safety net is no more necessary for older workers."

You can download a copy of the full report below.

Download Older Middle Skilled Workers Report


Insight into Post Retirement Careers

OntheClock"Retirement" is a word that may have to be retired. The notion of "retirement" is so different from just a generation ago. Americans are living longer, but a significant number are looking forward to woefully underfunded later years. Some Boomers are still recovering from the 2008 financial debacle. Most don't think Social Security will be adequate. As a result, it's almost a given that many Boomers will be working at least part-time instead of fully retiring.

A 2015 AARP study of "post retirement careers" sheds some light on the situation. According to the study, almost half of respondents (45 percent) see "retirement age" as between 65 and 69. More than a third of them (37 percent) expect to work for pay after retiring from their current career.

For those who expect to work post retirement, close to half (44 percent) will do so in a new field, while 23 percent say they will stay in the same field; 33 percent are undecided. Most respondents (73 percent) will seek part-time employment -- only 25 percent of males and 21 percent of females expect to be fully retired. As for having a boss or being the boss, 57 percent of respondents anticipate working for someone else instead of being a contractor or starting their own business.

Boomers are notorious for redefining just about everything -- and retirement is no different. To review the complete AARP Post Retirement Career Study, click on the link below.

Download AARP Career Study 


Changing Your Career Later in Life Works

OntheClockMany of us who have been in the workforce for decades are faced with a dilemma later in life: We may want (or need) to continue to work, but the opportunities in our area of expertise are limited. In some cases, it is because our field has changed; in others, it is because employers are less likely to retain experienced and expensive professionals. As a result, some boomers make the disconcerting decision to change careers.

The good news is that changing your career later in life generally works, according to the American Institute for Economic Research (AIER).  In their 2015 research study, "New Careers for Older Workers," AIER reports:

  • "Out of the older adults who are trying to change careers, most are successful."
  • "The majority of successful career changers report that the move has made them happier."
  • "Many successful career changers report that the change increased their income."
  • "Transferable skills are among the most important factors in successfully changing careers."

AIER surveyed adults age 47 and older. To qualify for the survey, adults had to have attempted a career change after the age of 45. The respondents were fairly evenly split between male (52%) and female (48%) and age group: 30% age 47 to 57, 33% age 58 to 64, and 37% age 65 or older.

The survey found that anywhere from 16 million to 29 million people attempt a career change after the age of 45, and 82 percent of these career changers are successful. These statistics hold true regardless of occupation. However, the survey did find that "respondents who report that they were unsuccessful in their career change were in their prior jobs longer than successful respondents, and they report spending more time job searching." According to the survey, the "overwhelming majority (90 percent) of career changers say the move was a success and report being happy or very happy (87 percent) after the career change." Half of the career changers "saw an increase in pay over time."

The survey results should give those of us who are contemplating career changes later in life some cause for optimism.

For some Boomers, changing careers means starting their own business. Read how one couple worked together to start a service business in the new book, Let's Make Money, Honey: The Couple's Guide to Starting a Service Business. 

 


50-Plus Workers Need All the Help They Can Get

OntheClockIt doesn't take a genius to figure out that all of us in the 50-and-over category face challenges in the workplace. Despite the proven value of wisdom and experience, it seems that the over-50 employee is the first to go in a company layoff. The cynical truth is that most companies will sacrifice older, more experienced (and more expensive) workers for younger workers to contribute to the bottom line. In some cases, older employees aren't even replaced -- their workload is simply spread among existing over-worked staff.

That's why 50-plus workers need all the help they can get, especially if they are in precarious work situations. Thankfully, there are resources available from government and via websites and books. Add to that the newly launched "Working at 50 Plus" microsite from AARP. This online resource center includes helpful information about staying competitive, age discrimination, work-life balance, and planning for retirement.

Check it out at: http://www.aarp.org/work/working-at-50-plus/

For some 50-plus workers, running your own business is a viable option. Should you work with your spouse or life partner? Read this post on LinkedIn to learn more.


Work and Retirement: The Real Deal

OntheClockToday's retirement landscape looks very much different from just a generation ago. Economic realities and the fact that many seniors aren't ready to call it quits are re-shaping attitudes toward working for boomers and beyond.

Proof of this can be found in a Merrill Lynch study, conducted in partnership with Age Wave, that reveals some stunning information about work in retirement:

  • More than 70 percent of pre-retirees say they want to work in retirement.
  • Nearly three out of five retirees launch into a new line of work.
  • Working retirees are three times more likely than pre-retirees to be entrepreneurs.

While earning income is a motivation for some, "many others are motivated by important nonfinancial reasons," according to the study, which breaks working retirees into four categories: "Driven Achievers, Caring Contributors, Life Balancers, and Earnest Earners."

The study found that today's retirement picture is a four-phase process: Pre-retirement, "Career Intermission" (during which 52 percent of retirees take a break from working), "Reengagement" (a time when the four categories of working retirees are active), and Leisure.

According to the study:

"Today, 40% of people age 55+ are working — a level of engagement in work among this age group not seen since the 1960s. As more people continue working in their later years, the U.S. workforce is steadily transforming. In prior decades, workforce growth was driven by the influx of young workers. In the last seven years, however, workers age 55+ accounted for virtually all workforce growth..."

We are a force!


Working in Your Later Years: The Reality Gap

OntheClockI've written previously about the disconnect between older workers who want to keep working and a job market that isn't always receptive to keeping older workers employed. Some recent data supports the fact that being employed in your later years can be quite a challenge, but the news isn't all negative.

A study published in May by the Center for a Secure Retirement, sponsored by Bankers Life, indicates that, of retired boomers who are not currently employed, almost half (48 percent) would like to work but are unable to work, most often because of health reasons. Half (49 percent) of employed middle-income boomer retirees expect to work beyond age 70 or as long as their health will allow. Nearly three-quarters (72 percent) of employed retirees say that their per hour compensation is less than it was before retirement. Nearly nine out of ten (88 percent) employed boomers have work arrangements other than full time.

Still, working after retirement is viewed in generally positive terms. More than three-quarters (78 percent) of employed retirees claim they are as satisfied or more satisfied with their job compared to pre-retirement work. Employed retirees generally report lower stress levels and better relationships than their nonworking counterparts. Six in ten (59 percent) employed retirees say the primary reasons they work are non-financial. For some -- 42 percent -- working after retirement means self-employment or small business ownership. You can download the complete report at the link below.

Download Work-in-retirement-report-may-2015

 


Employers Have a Lot to Learn

OntheClockThere's a big problem in the job market, and most employers don't like to talk about it. It's called age discrimination, but I like to think of it as "Out with the old, in with the young." The problem is so pervasive that there are those in the over-50 crowd who undoubtedly fear an early forced retirement. Jim Emerman of Encore.org writes about this issue for Next Avenue, indicating that "employers have not yet embraced older adults with open arms."

Still, most research suggests that boomers are under-funded when it comes to retirement, so they'll have to work well into their 60s or even 70s. Maybe you're one of them. So how do you stay employed in the second half of life when employers are routinely cutting older staff first?

There is a little bit of a silver lining for silver-hairs. A few employers are notably senior-friendly, and others have started creative programs to help older workers transition into part-time positions. If your current employer isn't enlightened, you'll probably need to think about moving on at some point (and it may not be your choice). A fair number of professionals become "consultants" after losing or leaving a job. If you have a real interest in doing your own thing, this may be an option, but for many, "consultant" is just a code word for temporarily unemployed.

Three other possibilities people our age consider are starting their own business, retooling for an "encore" career, or working part-time. Questions then arise: Can you take the risk of being self-employed? Can you afford the time and money to pursue a second career? Does your financial situation permit you to work part-time?

It seems the majority of boomers need to or want to keep working. Here's an interesting article from AARP about people in their 70s who are still on the clock.