Retirement Being Redefined by Current Retirees Who
Continue to Work
Baby boomers and
younger workers have a thing or two to learn from current retirees
By Robert Valentine,
Certified Senior Advisor
September 30, 2006 - Will most baby boomers truly
retire? The old mainstays of golf, grandkids and travel haven’t been
enough to satisfy many retirees from previous generations. With the
great amounts of energy and success that exist within the baby boomer
generation, retirement isn’t likely to sustain their attention much
longer than it did their parents’.
If the current generation of retirees is any
indication, baby boomers and younger workers alike have a thing or two
to learn from their older counterparts.
In August 2005, Putnam Investments performed a
retirement survey called “Working in Retirement.” Most of the retirees
surveyed returned to work after an average of only 18 months of
retirement. Of those who returned, 32% cited financial need, while 68%
did so voluntarily.
The return to work may signal a problem that most
retirees don’t anticipate: having something fulfilling to do. The
keyword is fulfilling, and it’s the driving force behind a return to
work. Of course, the added income and the potential health insurance
benefits don’t hurt either.
The phenomenon has become so recognized that In
areas with large and increasing populations of retirees, like Arizona,
many employers are catering to the retired crowd. Certain companies
offer specific work opportunities crafted for retired people. In Tempe,
Ariz., Wells Fargo has a special processing center that hires mostly
retirees, whom they have nicknamed “Silver Bullets.”
The Putnam study didn’t focus just on work after
retirement. It also emphasized several key reminders for younger
workers. Even though the current generation of retirees is relatively
financially stable, they still have concerns about running out of money,
and they’re worried younger people will do the same. They emphasized
starting retirement savings early, developing a retirement plan and
saving as much as you can both through your workplace program and on
your own.
No one expects the baby boomer generation to be
content with life in retirement, which is why planning post-retirement
activities, both work and play, is so important. And it’s just as
important for younger workers to plan for such activities too. No matter
your age, informing your financial professional of your desire to work
and your hobbies and interests will make your retirement plan that much
more complete.
Read more about Robert Valentine at bottom of page.
Editor's Addition:
How many senior
citizens are in the workforce?
How many of those that have reached the typical
retirement age of 65 are in the workforce? It is a question that has
been probed by several studies, with estimates ranging from 12 percent
to 30 percent.
The most accurate information, however, is that
from the U.S. Bureau of Labor Statistics, which does show increasing
numbers of senior citizens are working. In 2003 it had reached almost 13
percent – up from about 11 percent in 1990.
The chart below shows the number of people employed
in the U.S. in selected years from 1990 through 2003 by those over age
16 and age 65. The numbers are in thousands and represent the
non-institutionalized population. The source is
the U.S. Bureau of Labor Statistics,
Employment and Earnings, monthly, January 2004.
What is notable in the total number employed is the
increase in seniors. There were 37.7 percent more seniors working in
2003 than in 1990. On the other hand, the total workforce over age 16
increased by only 15.9 percent.
|
Age Group |
1990 |
2000 |
2001 |
2002 |
2003 |
% Ch. |
|
65+ |
3,346 |
4,179 |
4,253 |
4,306 |
4,608 |
37.7% |
|
All 16+ |
118,794 |
136,891 |
136,934 |
136,485 |
137,736 |
15.9% |
|
Population |
|
|
|
|
|
|
|
65+ |
31,241 |
34,817 |
35,328 |
35,585 |
35,943 |
15.1% |
|
All 16+ |
192,012 |
212,589 |
220,556 |
223,253 |
225,917 |
17.7% |
|
% Employed |
|
|
|
|
|
|
|
65+ |
10.7% |
12.0% |
12.0% |
12.1% |
12.8% |
19.7% |
|
16+ |
61.9% |
64.4% |
62.1% |
61.1% |
61.0% |
-1.5% |
The most recent study, published this month, by the
Pew Research Center has discovered a gigantic gap between the retirement
plans of current workers and what senior citizens already retired have
actually done. Pew found 77 percent of today's workers plan on
continuing to work "for pay" after they retire. This does not match with
the reality of today's retirees – just 12% are working for pay and only
27% have ever worked after retiring, according to Pew.
Read more...
Note: This article was submitted by Robert
Valentine of Financial and Retirement Management. Robert (CA Insurance
Lic #0C23496) is a Registered Representative of and offers securities
through Securities America, Inc., a Registered Broker/Dealer, Member
NASD/SIPC. Advisory services offered through Financial and Retirement
Management, a Registered Investment Advisory firm. Robert is a Certified
Senior Advisor in Huntington Beach, CA. Several of his articles on
financial planning matters that concern investors have been published.
Robert can be reached at (877) 732-2637.
