NBR Commentary – Retire Retirement – 8 Mar 07
It’s time to retire retirement. I don’t mean delay or deny people their hard-earned retirement benefits. I mean make it easier – more the norm – for capable people to continue to work, typically part time, well past the average retirement age of around 63.
The “quit cold turkey” form of retirement, trading full-time work for full-time leisure, turns out to be a pretty bad idea. People who work in retirement stay healthier longer. An American who reaches retirement age in good health has an additional life expectancy of nearly twenty years. That’s a big chunk of life – why not spend part of it producing and earning?
It’s also bad for employers and the economy. The workforce growth rate is slowing, and too big a wave of Baby Boom retirements will leave employers short on knowledge, skill, and experience. Employers have to shed their biases against older workers and hold on to their services instead of showing them the door.
Most people will still want to retire when eligible. Retirement then means changing your work pattern – and maybe your career – and financing your life with a new mix of salary, savings, pension, and Social Security. But it no longer means “not working.”
For several generations of Americans, a comfortable retirement was the sign of success. I’d argue that the real sign of success is the ability to continue succeeding – at something you like to do – regardless of your age. Just ask Tony Bennett, or Warren Buffett.
I’m Robert Morison.
It’s time to retire retirement. I don’t mean delay or deny people their hard-earned retirement benefits. I mean make it easier – more the norm – for capable people to continue to work, typically part time, well past the average retirement age of around 63.
The “quit cold turkey” form of retirement, trading full-time work for full-time leisure, turns out to be a pretty bad idea. People who work in retirement stay healthier longer. An American who reaches retirement age in good health has an additional life expectancy of nearly twenty years. That’s a big chunk of life – why not spend part of it producing and earning?
It’s also bad for employers and the economy. The workforce growth rate is slowing, and too big a wave of Baby Boom retirements will leave employers short on knowledge, skill, and experience. Employers have to shed their biases against older workers and hold on to their services instead of showing them the door.
Most people will still want to retire when eligible. Retirement then means changing your work pattern – and maybe your career – and financing your life with a new mix of salary, savings, pension, and Social Security. But it no longer means “not working.”
For several generations of Americans, a comfortable retirement was the sign of success. I’d argue that the real sign of success is the ability to continue succeeding – at something you like to do – regardless of your age. Just ask Tony Bennett, or Warren Buffett.
I’m Robert Morison.
