Loading ...« Passionate Workers Are Likely To Drive Organizations Forward – Oh Really? | Home | Do You Have What It Takes To Be Mentored? »
Why People Are Delaying Retirement
By TWilson | August 6, 2007
Why people are putting off their retirement? For a number of reasons the least of all is the fact that they are living longer and don’t see the need to take the old route of retiring at 65. I think a current set of Ameriprise commercials in which Dennis Hopper kicks retirement to the curb are great. Many baby boomers – myself included – just aren’t ready to retire and feel they still have a great deal to contribute. That said I’ve found out there are other reasons for not taking the traditional route to retirement.
One example I am personally aware of involves a close friend. He could retire now and be very comfortable but won’t for several reasons. Presently, he has a young preteen daughter that he had late in life. He already has older children and is a grandfather, but while his younger daughter is middle school age, he plans on working for a few more years. He’s still active, in good health and is fully capable of performing the duties currently assigned to him. If anything, he lends a level of stability to his organization. That in of itself is a reason a number of companies are looking to bring back older workers. Older workers have a work ethic that is missing with our younger generations. Also, older workers don’t need – or want – the incessant level of praise that our younger generation requires according to a recentWall Street Journal article on being praised. However, I think the main reason for his not wanting to retire now is he still has things he wants to do. He does have plans to leave his current job over the next couple of years, but he still wants to work on a part time basis doing consulting and training.
Another reason people are not retiring has to do with finances. Some just don’t have the finances – for whatever reason – to retire and they need the money. It’s not uncommon to hear people in their early sixties talk about how they have to keep working because they just can’t retire now. It’s not that they haven’t invested or saved. It has to do with the fact that what they thought they had for a pension is gone because the company they worked for didn’t fund either their pension plan or it’s now bankrupt. The amount they expected to receive at retirement will be less because it will come from the Federal Insurance of Private Pension Benefits Fund not their now defunct pension. Employees who worked for Enron and Polaroid saw their savings evaporate overnight while senior management walked away with their wallets fatten and saying how sorry they were for those who are now left out in the cold. These individuals will have to continue to work because of bad management and plain old greed.
Perhaps the most telling is the number of individuals that have started their own businesses. One report I saw stated that number of workers 55 and older who are self-employed rose to 28%. What they are doing is taking their buyout packages and starting their own businesses keeping them in the workforce not as an employee but as an entrepreneur and business owner.
And finally, for some, they have a set of skills still required in the workforce. They have been recruited back to work because of just plan need. Their expertise is needed now and the company can’t afford to wait for others to come up to the require knowledge level as the time it would take them could mean the difference of getting a product out the door timely and gaining market share or outright bottom line loss.
So from my perspective here are the reasons why people are waiting to retire:
- Having children later in life and the need to continue to work to handle child rearing expenses
- They see no reason to retire, feel they still have much more to contribute
- Can’t afford to retire they don’t have the necessary funds
- Many have started businesses and are working in their business
Topics: ACTing Right, Accountability |
Comments are closed.