Should Baby Boomers Retire Now?

The response to this topic is overwhelming!

“America’s retirement age of 65 is “crazy,” BlackRock CEO says, in an article yesterday for MSN.

“With Americans living longer and spending more years in retirement, the nation’s changing demographics are “putting the U.S. retirement system under immense strain,” according to BlackRock CEO Larry Fink in his annual shareholder letter.

Regardless of whether you agree, he has a point for all Americans.? Please stay with me!

There are truly not enough younger workers to support the Social Security and Medicare systems as there were in the past. According to multiple sources, the younger workforce is shrinking.? In the past there were approximately 7.2 young workers paying into the system for every retired worker.? By 2022, there were only 4.4 young workers for every older worker. ??(UN World Population Prospects 2022) However, “Social Security might well survive in its current form if we were to work until the end of our health span—that is, until we start to experience serious health issues.”? (Mauro F. Guillen, “The Perennials”)

It may seem at first glance that this is a “Baby Boomer” problem, but it is really a problem for everyone.? For one thing, we will all get older over time.? (The other option isn’t good, right?)? Secondly, when people are forced to retire early, and are perhaps unprepared financially, someone must help them whether that is family or taxpayers.? And people who are forced to retire frequently become depressed, also a burden to others, not just themselves.? Lastly, when organizations force people out, they lose valuable experience, wisdom and history that will help those taking leadership positions for the future.? Set the next “generation” up for greater success!

Wouldn’t it make sense for older workers to keep working and contributing as long as they are healthy and willing?? Perhaps a career pivot that makes more sense for them and helps younger workers become more effective in leadership roles.? Allowing younger generations advancement opportunities that include on-going mentoring and support.

All of that said, some people are tired and want to retire even at the age of 62.? Go for it! ?This is particularly true of those in high stress jobs or roles that require physical exertion.? ??I know people in their early 60’s who have been “knowledge” workers that are burned out from unrealistic employer expectations. And people from civil service roles need a break.? I agree that these people should retire or pivot to more rewarding endeavors.

But for every one of these people mentioned above, there are those who want to keep working and are getting squeezed out at 65 or earlier by their company.? Seems very short-sighted on the part of the employer and is demoralizing to those individuals who wonder if any day they will be let go.? People who have been loyal to their company are being let go because of their birth date.? I don’t think any of us appreciate that type of treatment.

Here’s the current situation that we should all be aware of, the number of Boomers reaching retirement age (65) is increasing this year according to NBC’s Christine Romans.? (“What to Know About Retirement” featured on the Today Show) She goes on to say that many of these people are not financially prepared to retire and really should do the smart thing and wait until they are 70 to retire if their health permits.? At age 67 or 70, monthly social security disbursements increase significantly, and most Boomers will need that extra income.? As will many from future generations.? In the past, the pattern has been for retirees to pass away not long after they retire at the common retirement age of 65.? Today, most people are living much longer!? That is a happy situation for all of us.

?Perhaps more importantly, organizations that encourage their older workers and younger workers to collaborate and work together form stronger intergenerational teams! ??Beginning with a culture of generational inclusion, these organizations experience something even better than collaboration, they experience intergenerational synergy where the sky is the limit! ?Older and younger generations respect one another and welcome new ideas along with proven ways of doing things.??

Looking back over the decades of my own work life, this has been true for me and continues to be true.? When I started my recent career pivot, a seasoned veteran in the speaking business helped me immensely with advice and guidance.? At the same time, younger people, like my website designer, gave me priceless guidance from a younger point of view.? This has been the case for almost every part of my work experience, older co-workers and leaders sharing wisdom and direction alongside younger co-workers providing fresh perspective and new ideas.

Generations working side by side prepares organizations for the future!? Yes, it is a great way for succession planning, mentoring, and coaching, but there is more to this discussion.? Boomers tend to have stronger networking and social skills.? They have better soft skills.? The best way to learn these skills is through exposure, spending time together.

Back to our original topic.? Is 65 the age to retire?? On this point, I agree with Larry Fink.? There should no longer be a specific age.? And employers should not be able to force out people based on age if they are working effectively.? This practice is Ageism, (Age discrimination) and it is not really helping anyone, including younger Americans.? We all eventually get older, and we are all in this together!? Let’s build a culture where people of every age are valued for what they contribute, both young and old!? And if someone wants or needs to retire, go for it!? But for those who can and want to keep working, why not?? According to the statistics, there is room for everyone!