Boomers say Goodbye to Retirement and Hello to Continued Employment and What This Means to You

A recent survey showing that two out of three people over the age of 50 view the "retirement" phase of their lives as "a time to begin a new chapter, start new activities, and set new goals." (AARP who did the research called it the "End of Retirement".) Yes, this is very different than the manner their parents — the so-called "G.I. Generation"--approached retirement.

The G.I. Generation survived the depression and fought in World War II. Members of this older generation wanted nothing more to do with work once they retired to what was considered a well-earned respite.

Unlike the boomers, the G.I. generation avoided debt and saved money. That, combined with a traditional pension and Social Security, provided a stable retirement in which most did not have to work. The boomers, however, face vanishing pensions that have in many cases been replaced by the uncertainty of 401(k) and other similar plans that depend on an individual’s investment prowess as well as the vagaries of the markets. In addition, there is concern that Congress may reduce Social Security benefits.

The G.I. generation also wanted to stay put. Earlier surveys showed that 80 percent wanted to stay right where they were when they retired. Current surveys by AARP — which changed its name a few years ago from the American Association of Retired Persons to attract boomers put off by the term “retired” — and several home-building companies indicate that 60 percent to 80 percent of the G.I. generation’s children, the boomers, want to move, especially to less urban areas, when they retire.

So the next generation of "retirees" is redefining post-retirement working (yes, it's an oxymoron but one that will be with us). Much of this "work" will be in entirely different fields than boomer workers had earlier in their lives. Forget "second careers," these will be third, forth and fifth careers; for example, an accounting becoming a teacher or a lawyer becoming a river raft guide. Yes, these are extremes but we are already seeing seniors pop-up as Starbucks employees looking like they are having more fun than anyone else working in the place. Others will keep working in their same fields driven simply by the fact that they enjoy what they are doing. (A distant relative of mine, who is well-past retirement age, continues to work as a mechanic in a bike shop--a job he thoroughly enjoys.)

According to the AARP study referenced above, because of these trends, the majority of the 77 million baby boomers entering their retirement years there have a strong desire to continue earning an income later in life. 80 percent of boomers expect to continue working in some form past the age of 65 - either for the money or for the fun of it--with the result that by 2015 nearly one fifth of the American work force are expected to be 55+.

Businesses are starting to respond to the needs of this incredibly qualified workforce. Despite often being part-time, they are starting to offer pension benefits, including retirement savings vehicles and prorated benefits for them. Many are providing flexible scheduling, job sharing, and telecommuting. These are important because many boomers are now caregivers for their parents, and often for dependent children, so they need and want some flexibility at work.

What does all of this mean to you? A lot.

You should be thinking about the type of work that you'd like to do in your later years. Do you have a strong opinion for what you want to do or no idea?

If you do know what you'd like to for later stage working, do you already have the skills and connections to do it or do you need to acquire them? If the latter, what is your plan and time-line to acquire them? Start now. How? A good place to start is doing Internet research, talking to people who are in that job, and picking up a few relevant books on Amazon.

Does the work that you would like to do fit with the geographical area you are in? As mentioned above, the majority of boomers want to move in retirement (and many to more rural areas) and need to reconcile this with the their long-term work plans.

The enjoyable part of the above planning is that unless you've waited until the very last moment, you probably have a great deal of time to figure it all out. Happy planning.