Photograph by Kathy De La Torre
Andre Rude went back to work after he retired, but a flexible work schedule allows him two mornings a week on the tennis courts.
Older workers are looking good to today's employers
By Rita Baum
...but I have promises to keep, and miles to go before I sleep, and miles to go before I sleep.
John Bogle, 70-something founder of Vanguard Mutual Funds, one of the largest and most respected mutual fund companies in the U.S., quoted these words by Robert Frost in what appeared to be his farewell letter to shareholders. After a half-century of leadership in the mutual fund investment industry--and four years of continued leadership after a heart transplant--Bogle was moving on.
Retiring? Guess again. Bogle was fired up in anticipation of a new job within a newly created Vanguard unit where he will be researching and writing about financial markets. "Creating and leading Vanguard has been an exhilarating run," he wrote to shareholders. In the same breath, he expressed optimism for what lies ahead.
How unusual is this desire to continue working past the traditional retirement age? Not as unusual as you might think. Los Gatos engineer, Andre Rude stopped working for Hewlett-Packard last year at age 68. But before he reached his 69th birthday, H-P called him back to work on a new project that required his particular knowledge and expertise, as well as his understanding of the H-P culture.
He agreed to come back part time, but gradually increased to 40 hours. "It's fun and challenging to work with good thinkers and new ideas", he said. H-P's policy of flexible schedules enables Rude to play tennis two mornings a week before work and to continue his community service activities. Job sharing will enable him to reduce his hours in the future. "It's a win-win situation," he says.
The incentive to retain older workers is prompted by the current labor shortage in the United States. We are experiencing a demographic shift in which older people outnumber the young, while productivity and the need for employees continues to grow. The obvious consequence of this trend is a shortage of "working age" people to fill jobs and support a population of long-lived retirees. Every source of productivity must be put to use.
Unfortunately, some employers have negative perceptions and ageist attitudes about older people, such as the erroneous suspicion that older people will not adapt to new technology or learn new skills. In fact, 30 percent of Americans between ages 55 and 75 own computers and are more likely to make a purchase on the Web than other age groups. Older people can and do learn, and many studies have shown that age is a poor predictor of performance.
In addition to large and small employers, the government also is taking an active interest in keeping or bringing back older workers. This year, the Americans Right of Employment Act was proposed to provide incentives to work beyond the age of eligibility for full Social Security benefits, including a reduction of payroll taxes. Last month the Senate voted unanimously to eliminate the earnings limit penalty on social security beneficiaries.
What's more, the new laws will require state employment agencies to offer equal services to older people, including computers, Internet, job listings, résumé writing tools and job readiness training. The goal is to encourage millions of baby boomers to remain in the work force, reversing the early-retirement trend that took hold in the last century.
Consider the numbers. The earliest baby boomers, born in 1946, turn 65 in just eleven years, and there is concern that there will not be enough younger people to replace them or support their swelling ranks. In 1950, there were five people working for every one who was retired. By 2030, demographic experts predict, there will be two workers for each retired Social Security recipient. By 2020, two thirds of the workforce will comprise women, minorities and immigrants supporting mostly white retirees.
And there's even more incentive for older workers to stay on the job past age 65. Beginning in 2003, Americans born in 1938 and '39 will be entitled to full Social Security benefits at age 65 and two months, and gradual increases in the age for full eligibility will occur until those born 1960 and later will start benefits at age 67.
The mature market of consumers comprises only about 25 percent of the U.S. population, yet controls three-quarters of the financial assets, and numerous older boomers have earned enough to retire comfortably by age 60. Yet, with 25 to 30 years of life expectancy ahead of them, many boomers are saying they want to work at least part time before they slow down.
Many of these ambitious baby boomers are expected to push up the average age of retirement. Keeping this group in the workforce will be increasingly important to the U.S. as a whole. Currently, the Social Security program collects more taxes from workers than it pays out in benefits, which has resulted in a federal budget surplus. But by 2013, it is anticipated that Social Security will start paying out more than it takes in, dipping into the surplus and running short of funds by 2034.
All things considered, there is good reason to encourage older people, including baby boomers, to remain on the job. Older Americans are healthier, better educated and possess skills that should not be overlooked by employers. Many of them are receptive to a "phased-in" retirement, with reduced working hours and flexible schedules, especially when monetary and health benefits are part of the package.
For others, the lure of travel, going back to school just for the fun of it and the excitement of a new phase in life are attractive.
Barbara Byers, a 62-year-old Willow Glen resident, will retire this month. "Work interferes with my plans for the rest of my life," she explains. She is looking forward to travel, exercise, spending more time with her grandchildren, and reading all the books she has bought, but been too busy to read. She, too, in a different way, has promises to keep--promises to herself--and miles to go before she sleeps.
Saratoga, California Since 1955
