Working in Retirement - Why 50+ are Working in Retirement

The economic downturn has heightened the awareness that retirement-aged people are working longer. The assumption is, people are continuing their employment because they have experienced depletion of their retirement savings. However, research suggests that the trend today was not necessarily triggered by the recent recession. A study done by the US Department of Labor indicates that traditional retirement is becoming the exception instead of the rule. Most people today transition into retirement gradually over several years rather than the conventional way to retire that everyone is familiar with.

There are many reasons why people are working longer and into retirement. The physical nature of jobs are not as demanding as they once were and there is increased longevity due to people maintaining healthier lifestyles. The traditional pensions that our parents were accustomed to are quickly becoming a thing of the past, so for financial reasons, some might pursue that dream job. Others may fear boredom in retirement and want to feel productive and useful, while at the same time learning new things and interacting with people.

Because of the gradual transition into retirement that many are choosing, people are taking on bridge jobs before completely leaving the workforce. These transitional jobs help to bridge the gap between full time employment and total retirement. A BLS study indicates that a half to two thirds of people with full time employment are using bridge jobs to transition into retirement. Age, health status, type of pension and pension eligibility are all factors that determine whether or not someone will choose this type of transition.

Workers who decide to take on a bridge job do so because the job meets their needs of economic security, work-life fit, climate of respect, supervisor support, job challenge and learning. If older workers do not find these characteristics in a job, they tend to create the best environment for themselves, which often translates into self-employment.

So what are some things employers can do to create an attractive environment for bridge workers?

• Write policies and procedures to support the needs of the 50+ age group.
• Maintain workplace flexibility to support the unique issues of an older workforce.
• Offer a phased retirement option.
• Provide an environment that is inclusive and supportive of working retires.
• Offer flexible careers that support transition into retirement.
• Ensure appropriate job fit for the changing needs of older workers.

People working in retirement is a new trend that is changing the way we view our careers. Employers should pay attention so they have policies and procedures in place to cater to this growing and valuable workforce group.