DLEAYED RETIREMENTS DON’T HELP TROUBLED ECONOMY

#DelayedRetirement #retirement #OlderWorkers
In decades past, one worked in a job, or for a company for 30 to 40 years and retired with a pension, Social Security and, perhaps, a no-stress, part-time job.
Some fortunate ones retired earlier than the traditional age 65. A scant few worked past age 65.
Retirements opened positions for younger workers to move up, and the jobs they vacated were available for newer workers. That was helpful to the economy.
In the last few years, since the 2008 recession, that dynamic has changed. More people are delaying retirement, largely because the relatively generous retirement benefits of decades past have been cut, or have disappeared. Another reason is that more people are being forced out of good jobs ahead of when they wanted, or had planned to, retire. They end up taking jobs that pay a lot less, so they have to work longer and retire later.
Michael Molinski, a Paris-based economist and writer, discussed this topic in a column for USA Today. It was published July 24, 2016, in The Tennessean newspaper of Nashville.
“People in the U.S. are working longer and waiting longer to retire – often not by choice – and that could be bad news for our economy,” Molinski writes. He quotes a study done at the University of Paris-Sorbonne that says, in part, “the most productive group is the group of core workers (ages 25 to 54) right in the middle” of the barbell-shaped labor force, Molinski writes.
In other words, more older and younger workers, starting at age 15, are being pushed into the labor force, he says.
He adds that older workers can be, and often are, valuable mentors to younger workers. But the average age for retirement in the U.S. has jumped to 62 in 2014, up from 59 in 2010, he writes.
“As a result, our economy is less productive than it could be, and that trend is expected to continue for the next 35 years unless something is done to turn it around,” Molinski writes.
Actually, when the traditional work cycle was alive and well decades ago, life expectancy was a bit younger than it is now. So, more people have more energy and, at least in theory, get “old” much later in life.
That isn’t to say that everyone WANTS to keep working later in life. Most of us, unless we really love our jobs, want to retire as soon as we are able. Also, many of us do not want to be FORCED to retire before we are able.
The key to making the work cycle work for you is to be retirement-able as soon as possible. You might decide to keep working even if you can retire, or you may be forced to retire before you want to. The key here is to make whatever you do YOUR choice. Circumstances may hit you in the face, but if you have options, you can hit back.
One option is to save and invest wisely throughout your working years, starting at the youngest age possible. Another is to have a Plan B, at which you work part time during your working years that will help you save money and earn an income that could enhance your options. There are many ways to do that, for those willing to look for them. If you’d like to check out one of the best, message me.
Working longer because you want to is commendable. Working longer because you have to could be torturous. At the youngest age possible, everyone should be thinking about how to enhance his or her options as life, and the labor force, takes its turns.
If you are an older worker and are able to retire, perhaps you should think about the younger person who really needs your job. If you are a younger worker and see many people working past when you think they should retire, don’t resent them. Instead, learn from them.
Peter

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