Rethinking Retirement: The Age Barrier

(CBS)  When it comes to customer service, Dan Hoffa delivers. He's a new ambassador for his wife's small natural food business.

"Obviously I've got a little more time to do it now," Hoffa said.

In January, Hoffa lost his job as a technology sales executive in Portland, Ore., along with his six-figure salary, reports CBS News correspondent Ben Tracy. The market plunge wiped out 50 percent of his savings. At age 64, his carefully crafted retirement plan suddenly became obsolete. Hoffa needs to work for at least four more years.

But despite 14 years of sales experience, he can barely get his foot back in the door. Despite applying for about 60 jobs, he's only gotten two interviews.

Hoffa is facing one of the toughest job markets in the country. The unemployment rate in Oregon is more than 12 percent, but he says a bigger problem is another number: his age.

On average, laid off workers age 55 and over are now unemployed for 25.2 weeks versus 20.6 weeks for younger workers, according to the AARP. Employers often worry about older workers learning new skills, their salaries, and how long they'll stay on the job.

"How do you think your appearance strikes these younger hiring managers off the bat?" asked Tracy.

"As an old guy," Hoffa said. "You know, 'What the heck's an old guy doing here?'"

Sue Downes, a laid-off hedge fund employee, thought her looks were dragging down her job search.

"I have these lines," Downes said.

So, the 54-year-old single mom is literally putting her best face forward.

"All of this can be taken care of with Botox," said Dr. Yan Trokel, Downes' doctor.

"A lot of people over 45 are feeling the same way I am, that they're being excluded from getting a job," Downes said.

Experts say older workers are going to need to work longer than they planned.

"Working longer is probably the most potent tool for insuring that you have a secure retirement," said Alicia Munnell, the director of the Center For Retirement Research at Boston College.

Delaying retirement from age 62 to age 67 can boost your savings by 50 percent, turning a $1 million nest egg into $1.5 million, according to the Urban Institute a nonpartisan economic and policy research group.

"I think showing that you're committed to your company and you want to be thought of for advancement, not just treading water, is really important," Munnell said.

So to stay employable well into your 60s, you need to adapt to new technology, don't stop networking, reach out to younger colleagues who could end up as your boss, and stay healthy so you can keep working and avoid costly medical payments.

Downes' new look has lifted her spirits.

"When I'm walking in a place for an interview and everyone is 20 years younger, I won't feel at a disadvantage," she said.

And Hoffa feels that he won't be unemployed for long.

"If you stay positive I think good things will happen," he said.

One of those things, they hope, is still retirement.

[hamptonbeach]

Hey Boomers, friends are moving to Lake Weir Living in central Florida. There's no crazy HOA restrictions or fees & the homes (priced affordably from the $90s) are custom built & have large gargages for big toys, like boats, motorcycles, RVs.... Here, go to the blog for videos: http://www.lakeweirlivingblog.com

[harpat949]

My personal experience completely agrees with walt1944's comments.
Older people in general have a greater sense of decency and truth
younger bosses cannot tolerate their smartness
Older people can do things with much less effort
Sometimes younger people appear to do things much faster from ignorance but eventually cause enough problems to bog down the whole system.
It is a shame that nobody has decided to take advantage of this wonderful resource.
If I owned a company, I would have majority of employees over 50 years of age and would not hesistate to hire those much above as long as they can put in a few hours of work in a day. I have worked at many companies small and big and prestigious and seen the destruction first hand.

[CenterStudy]

This network has done it's job of discriminating against women as the workplace is guilty of doing. Why has NO ONE noticed that a man has been given the lead to this story and offered the sympathy of its viewers because he cannot get a job. Here is Sue Downes, an eloquent female whose search for a job has ended in a doctor visit for botox, gotten little attention. She is on 54!!!! This network has edited her profile very poorly, what is her EXACT background? She was employed and now clearly resorting to age-enhancing remedies. I think this speaks for a sick media environment and a lackluster editorial crew. Katie Couric...you have had every procedure know to man, why can't you give women more support? This is a disgrace. You should be ASHAMED of your staff and the treatment you have given to someone who has chosen to be a candidate to this segment. I hope your ratings end up in the loo.

[campbellam]

Thats how I felt until I realized I could retire and get rich in doing so! I always thought these deals were scams and hated anything to do with them until I found this.
www.myprofitsmadeeasy.com. No need to join just wanted to share. cheers

[Popa41]

I can sympathize with folks in their early 60's nearing retirement age and seeing all their life savings go down the drain. But, you CAN still retire, you just have to live by a one word rule: DOWNSIZE. Come on, my wife and I are living on two Social Security Checks and a lousy $200 a month pension check from the Teamsters. My savings are in the very low six figure area. We eat out 2-3 times a month. We never hesitate to buy things we don't really need, but we just don't overspend. Pay all the credit cards off every month and eliminate all your debt. But, like another poster said, we put into Social Security ALL our lives and we just want our money back till the day we die. Just so the Republicans don't get back in power and get stupid enough to INVEST our SS money in the stock market. Can you imagine where we'd be today if we'd have let W pull off that stupid idea.

[gigical]

I saw this segment on CBS evening news last night and found it lacking in depth and diversity. BORING... Why focus on someone close to retirement who appeared reluctant to go back to work? And who also has his wife's income to fall back on. There are so many vital boomers out there who have lost their jobs and want to work, need to work, with no plans or resources for retirement. Many of my female friends (including me) have been tossed out of the workplace in their fifties with very little resources to support ourselves. Some of them are single moms, have a mortgage, college bound kids, and are desperate to find work. I'm much more interested in the story of the 54 year old single mom who has to resort to Botox to get a job while she struggles to raise her children.

[ElectricBlue44]

Some people speculate that America is headed toward Socialism. The critics feel it would be a nightmare. I'm not afraid of trying it. In Canada, everyone pays higher taxes than we do, but they pay no medical bills. The government pays the medical bills. That means that when a Canadian hurts a wrist bad enough be concerned that the bone is broke, they don't have to fear how much financial lost will be involved in getting it x-rayed. Canadians don't suffer anxiety because they are scrambling to stop taking expensive medications. They don't have to worry about any of that. I'm ready to try it. I've been broke for 5 years trying to pay off medical bills. I'm tired of it.

[ElectricBlue44]

Lot of interesting comments here. I see us all becoming more conservative. Maybe owning a small home big enough to not feel cramped. Nowadays most people are more driven toward having a comfortable cash reserve fund than they are in planning for retirement. Would be nice to do both, but a lot of people can't. Even if a person is pleasantly employed after age 65, they may not FEEL like working. I believe that is the biggest problem.

[ianlou]

Thank the lord that none of the people in Obama's voting base (welfare recipients) are looking for work and never will which means more jobs for us. The only negative thing is that under socialist Obama, we'll have to pay more in taxes to take care of his voting base.
Posted by enjoylife63 at 8:38 AM : Apr 22, 2009

You aught to thank the lord that Jesus loves everyone, even idiots.

[cbs_tom]

" haven't looked in two weeks. You can only here "No" so many times. If I had the guts to do it, I would put a pistol in my mouth.

I don't know how we are going to make it".
Posted by lost_america at 6:50 AM : Apr 22, 2009

Your only 48 as I am. Life is not over! You have to re-adjust to the times. Leave the IT "box" and try something else. There are ways you can learn a new trade. If your debts are soaring, you must sell your home and rid yourself of monthly payments (loans). For the time being, look to live with your family (parents, siblings, in-laws) until you get your feet back on the ground. You will one day look back and be thankful to get rid of the debts. And this is very personal, but have you prayed to God for help? Don't knock it until you do.