NEW YORK, Jan. 6, 2004
Postponing Retirement
Some Workers Are Opting To Keep Working
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Play CBS Video Video Working Past Age 65
A growing number of Americans are working well past the retirement age of 65 and redefining the U.S. workforce. AARP's Deborah Russell discusses that with The Early Show.
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(CBS/The Early Show)
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Deborah Russell, manager of economic security and work for the AARP tells The Early Show why, and what it means for older employees in the workplace.
Russell says baby boomers staying in the workplace longer is expected to be a significant trend.
According to the AARP, 68 percent of workers currently between the ages of 50 and 70 plan to work in retirement, or to never retire. Almost half of these people say that they plan to work into their 70s.
Once boomers hit retirement age, the number of older employees in the workplace will increase. The economy, Russell says, has already seen a growing number of older workers. The Census Bureau reported that between 1998 and 2000 alone, the number of workers age 64 to 74 increased nearly 14 percent. Some of these are people who simply didn't retire, others are people who returned to work.
Money is the top reason why boomers intend to remain in the workplace, says Russell.
The recent bear market has certainly had an impact. Many older people simply don't have enough money tucked away for retirement. Americans are living longer, so someone who retires at 65 could potentially need to support themselves for 20 or 25 more years. Russell says the cost to retire really increases in these cases.
The need for health benefits is another incentive to stay in the workplace. Health care costs continue to skyrocket, and good insurance is a top priority.
But working past retirement is not just about the money. According an AARP study, people have a strong desire to remain mentally active and productive in their later years.
Russell says it is an excellent time to be an older worker, as many are already actively employed. When large numbers of women began working, Russell says, employers had to consider creating benefits that had never been needed before, such as maternity leave and childcare. The same thing is happening as more older Americans enter the workforce.
Older workers are demanding -- and often receiving -- more flexible schedules. They want to work fewer hours a week, or they want to work shorter shifts, telecommute or job-share. Some companies offer phased retirement, allowing employees to slowly ease into the retirement lifestyle. Training opportunities aimed specifically at those over 50 are also becoming more common, as are mentoring programs, which pair younger and older workers.
Russell says some companies are "managing aging." In other words, they are employing new technologies designed to help older workers continue to do their jobs well. For example, some health facilities are installing hydraulics to help lift patients off of beds - a task that becomes difficult for nurses losing the strength of their youth.
Employers are also benefiting from these changes, says Russell. Older workers have years of expertise and tend to be quite loyal to a company. She says companies actually need older workers. Once "baby boomers" begin to retire, experts predict a labor shortage. Some sectors are already feeling the pinch.
Three fields, recognizing the benefits of having older workers on staff and suffering labor shortages, are already working to recruit employees over 55. They include:
Russell says that's not to say that age discrimination has disappeared from the workplace. Sixty-seven percent of older workers believe that discrimination (not being hired, being passed up for a promotion, being fired) exists. Russell agrees that employers do often carry a bias against older workers - believing that they are not flexible, unwilling to learn new things and unable to work new technologies. Studies show that the younger the manager, the more bias they have.
But Russell expects complaints of age discrimination to drop. She says with so many baby boomers saying they aren't going to leave the workplace, and with the fact that less young workers are coming into the workplace, the businesses may not have the luxury to discriminate.
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