A Brighter Way
A Brighter Way
Baby Boomers: The Next Chapter is a four-part series intended to guide today’s largest generation as it heads toward retirement. The series also will provide practical guidance for employers as they plan to handle the growing number of retired workers. With topics such as Social Security, investment strategies and more, you’ll see why retirement is just the start of a whole new chapter in life. Part one discusses what you need to know about social security, part two considers what you need to know about retirement investing and part three covers transitioning your company to a new leader.
In the coming decade, 76 million baby boomers will enter their 60s. If you're one of them, you've probably been thinking about the "golden years" and what it will mean for you. As you've probably heard, with so many people collecting Social Security, our nation faces a potential crisis, and you may end up not getting all the benefits you expected.
In fact, one study found that residents in more than 125 of the nation's largest counties are ill-prepared for retirement. Hopefully, you're not one of them, and you've been planning for the future with proper investments and savings.
Whatever your financial situation, you should have a plan in place. However, you may be asking yourself whether or not you should plan to supplement your income after you retire. Experts agree that the American style of retirement is about to change. Did you ever think that you would keep working into your 70s or even switch job paths in your senior years? Surprisingly, 80 percent of boomers say they now expect to work in retirement.
Working longer is a powerful way to ease the retirement-income problem, and according to economist Alan Greenspan, older workers could be crucial to America's economic prosperity. While some boomers may work for money, many say they simply are not ready to stay at home. Whatever your professional and financial goals, don't expect to continue working the same job you're in today.
Many are leaving their full-time, lucrative positions for those that allow more flex-time. However, be prepared to take a pay cut. You won't be working the same hours under the same pressures, and your income will reflect the change.
"On the positive side, retirement is a fresh opportunity to pursue your passion," said Pat Porter, head of Rea & Associates' Human Resource department. "You're never too old to become what you want to become or do what you have always wanted to do."
The good news is that Generation X (1965-1979) is about 16 percent smaller, and there may be jobs to fill, meaning more opportunities for baby boomers.
The bad news is that you may face age discrimination. Just as women have had to fight for acceptance in the workforce, so will aging boomers. Some natural boomer barriers to employment are based on the reality that the majority of boomers won't stay on a job for the next 20 years. However, it is a near certainty that they will have higher healthcare costs. So boomers do present some risks to potential employers.
Staying healthy is one advantage to your working in retirement. Nearly 20 percent of people over 65 are disabled, according to a government study. Poor health is the biggest career risk you face.
Second, adapt your skills to fit the changing workforce, which includes refreshing technical and computer abilities. It's never too late for education -- and in the semi-retirement years, you can focus on what you love or what you've always wanted to do. You might consider retooling with a special certification or training program that could qualify you for that dreamed-about job or career path. Age, in today's world, is not a barrier as long as you keep your focus. However, a supportive family and or friends can be critical in maintaining your positive approach to this next phase of life.
"Many boomers have worked at the same place for years," Porter said. "Job hunting can be difficult, even overwhelming, especially when it's been 30 years since you've had practice at it."
In addition to updating your resume, Porter advises preparing a two-minute story about yourself and your skills. And remember, "the most important skill in job hunting is networking."
"The types of jobs boomers will most likely want aren't those advertised in the classifieds," he said. "You must rely on relationships to find work opportunities."
"The planning and the execution of the approach you take are crucial," Porter explained. "Don't simply tell your friends and former business cohorts you're looking for work. Set up a time to meet during business hours so they can focus their thoughts. Share your two-minute story and ask for advice on who you might contact to discuss your skills and your experience. This will more likely lead to attractive job referrals for you."
As you look forward to the "golden years," it is still true that saving for retirement is critical, and most baby boomers will save the most for retirement in the last 10 years of work. After the saving plan is in place, take a look at what you want to do. Remember that opportunities for meaningful work or rewarding volunteering will happen for you if you keep your always-wanted-to-do ideas in mind and learn or relearn the mechanics needed to get you there.
This article was originally published in The Rea Report, Fall 2006 issue.
Note: This content is accurate as of the published date above and is subject to change. Please seek professional advice before acting on any matter contained in this article.
