#retirement #WorkUntilYouDie #labor #jobs #employment
There’s talk in the public sphere about abolishing retirement.
That means, of course, working until you die, unless you have a disability.
The conversation is coupled with talk of cuts in Social Security and Medicare, even if such cuts come from only “waste” in those funds.
First, if you have a great job, and your employer will let you work until you die, congratulations.
But, that’s hardly the case in most places. Despite the need for labor and many unfilled positions, employers definitely look at older workers, many of whom are making the most money in their categories, for places to cut. Ultimately, they may replace those workers with younger, cheaper ones.
The generous employers will offer these older workers separation incentives, commonly called buyouts, to leave by a specified date.
The less generous employers will just lay off older workers, despite laws that may put them in a protected class.
These protected class laws put the burden on the employees to sue to keep their jobs. They have to show, in most cases, that their employers fired them simply because of their ages. That’s hard to prove, since employers can come up with other – legitimate or illegitimate – reasons to let a person go. Many employees are also so-called “at-will” workers, meaning they can be fired for any reason. Also, most employees won’t bother suing, and the employers know that.
But, even if your employer WANTS you to work until you die, do YOU want to work until you die – particularly at a job you hate?
Retirement is designed not just to protect older people from workplace abuse, but also for the workers to live their golden years with some degree of well-earned pleasure. It’s designed for people to enjoy, and have control of, some part of their lives before they die. Also, it is designed to make jobs available for younger workers.
When Social Security was created as part of the New Deal after World War II, most people didn’t live but a few years after their retirement at, say, age 65.
Now, with advances in medical care, people are living decades after retirement, placing a burden not just on Social Security, but also on public and private pension funds. Some actuarial studies show these funds might not be sustainable for the near term, never mind perpetuity.
Making people work well into their so-called retirement years conjures up many awful scenarios. Would you want your parent or grandparent in a factory line, working his or her tail off in their 70s or 80s?
Would they even survive it?
In addition to medical advances, people are living longer likely because they are not working.
No one should discriminate against a worker because of his or her age.
But, no one should make someone work past a certain age, if he or she chooses not to.
And, yes, we need to take care of older people who are not working.
It’s not an easy problem to solve. But imaginative people in all sectors of society can, and, hopefully, will find ways to make retirement more achievable, enjoyable and sustainable.
Peter
Tag Archives: buyouts
DOWNSIZING AND BUYOUTS: WHAT SHOULD YOU DO?
#downsizing #buyouts #JobLoss #SeparationIncentives
Your company has decided to downsize.
Perhaps it wants to eliminate a division(s) that it doesn’t see as part of the future.
It “generously” decides to offer some qualified employees a separation package, or buyout, to encourage them to leave.
Let’s say you are among those employees.
You want to keep working a few more years, but they have given you what you consider a generous offer. What should you do?
Most buyouts have certain things in common. First, what they are offering initially is probably the best you are going to get. There’s usually no negotiation for a sweeter package. More or less, it’s take it or leave it.
Secondly, you have to make this decision without all the information. You don’t really know, and no one will ever tell you, what YOUR future is if you stay.
There is usually a company option to reject certain employees’ applications for the buyout, but that rarely happens to an individual. If you thought you were indispensable, think again. If the company does not want a certain group of employees to take the buyout, it will not qualify them.
Thirdly, the decision rests on YOUR individual position in life. If you are financially able to take it, you may well be advised to do so. If you want to do something else, worry about that later.
If your job is eating you alive, or your boss is not treating you the way you believe you deserve to be treated, you may be advised to take it. Your life is not going to get any better, and could very well get worse, if you stay.
If you are not financially able to take it, you will probably have to suck it up and stay, and deal with what happens next.
Now, what if you could prepare for such an event ahead of time? What if you could spend a few part-time, off-work hours doing something that could potentially build your current and future wealth?
Though we are not talking about a second traditional job here, the concept involves a more pleasant form of work.
It turns out that there are many such vehicles out there for those who are willing to look for them. If you are open-minded enough to want to check out one of the best, message me.
Buyouts, downsizings etc. almost always come without warning. You walk into work one day, and an announcement is made.
If you could prepare ahead for it, you could walk away with a sweet deal and a smile.
If you don’t prepare for it, the decision can be much more difficult.
We used the term “generously” when we talked about such offers. Many workers simply get thrown out the door with nothing.
You can prepare for that, too. If you do, you could accept that situation with a smile, too.
Peter
A DISTURBING TREND: RETIRING BEFORE YOU WANT TO
#retirement #RetirementPlanning #layoffs #buyouts
It’s an alarming trend, a letter writer wrote.
People in their 50s are getting laid off, he continues. The workers may get an optional early-retirement package which, if not taken, leads to a layoff a short time later, he continues.
Or, he says, it may mean becoming a contract worker making half the money with fewer, and more expensive to you, benefits. “A friend who refused a package last year will retire with much less this month because of shortsightedness,” he writes.
The letter writer signed his missive “B.” He wrote the letter to Peter Dunn, the USA Today columnist known as “Pete the Planner.” His column was also published March 4, 2018, in The Atlanta Journal-Constitution.
To sum up Pete’s response, he advises: “Draw a horizontal line on a piece of paper, and create a series of hash marks on the line, representing future age markers. Next, list major life events on the timeline. Be sure to note events such as your mortgage payoff year, when you reach age 59.5 (when retirement funds become available) and when you hit 62 (the first chance to activate Social Security). …
“When I drew my line, I noticed my need for money peaked at age 53,” Pete continues. “If I were to lose my job at or around 53 years old, I would be in big trouble. Therefore, I want to be sure not to take on any additional obligations around that time in my life. Knowing when you’re the most at risk is a reasonable way to avoid additional risks,” Pete writes.
He goes on to say that the age timeline will help people evaluate any early buyout options.
This topic is trending at a rapid pace. Pete advises that retiring at a normal age, with “normal” benefits etc., is challenging enough. Retiring early because one is forced to can be torture, he writes.
Planning is obviously a wise decision, but the best laid plans can go awry when you least expect them, or want them, to. So, we are in a milieu in which we have to PRESUME that we will not be able to work at our current jobs for as long as we want. Reorganizations will come frequently. Bad managers will come into your life and throw you out – or force you to leave on your own.
The age-old advice is to spend less and save more, as consumer adviser Clark Howard preaches. If you “have to have” the latest, up-to-date gadgets, think about whether your current gadgets are serving you well. A rule of thumb might be: if a new gadget will give me pleasure, and is not a necessity of life, postpone buying it and live with the older technology. When the old stuff craps out, then replace it.
If you have, say, a daily habit of buying a cup of coffee in the morning, you might think about buying a Thermos and brewing your own coffee to take with you.
In other words, examine the little things you do in life that cost you money. Do you really need to spend it? Remember, too, to think value rather than price. Sometimes, buying better stuff up front will keep you from buying multiple cheap things later on.
Finally, if you are planning your financial life as best you can, but you don’t think it will be enough when you get shown the door at work, think about investing a few part-time, off-work hours in something that may not only augment your income, but could surpass it. There are many such vehicles out there. To check out one of the best, message me.
Meanwhile, draw the diagram Pete suggests. This is especially good for folks who are less careful about their spending. Save well. Invest well – or as best you can – with a good, trusted adviser.
In today’s world, for many people, retirement decisions, unfortunately, are made FOR them by others. Be prepared for that decision to be made for you, as early as tomorrow, no matter how old you are.
Peter