Last week, Ontario’s Ministry of Education promised an effort to help new teachers secure jobs, which included limiting the number of days a retired teacher can act as a substitute, thereby allowing more teaching opportunities for the newbies. But this situation is not unique to education. As retirees or near-retirees recognize their vitality, fear of boredom or financial uncertainty during retirement, more and more jobs are being monopolized by this older generation of workers.
Many retirees either defer retirement altogether or choose to double dip, collecting their pension and continuing to work as contracting consultants. It’s simple: work six months minus one day and pension pay-outs remain unaffected. Not only are these retirees collecting a pension, they are also robbing younger workers of  opportunities. Why is that? Well, there are many reasons I suppose.
 
For one, individuals in their sixties are feeling much more vital than generations past at that age. Decades ago, individuals enjoyed a mere ten years, or so, after retirement before death. Now most live long past those precious ten years post-retirement. They have the health and energy but also the knowledge and experience to be retained by employers.
The fear of boredom in retirement also scares some into staying put. Many of them still identify so strongly with their career and worked so diligently building it, that they did not pick up any hobbies along the way. The absence of extra-curricular causes them to feel lost and lacking purpose come retirement.
There is the retiree whose life brought forth unexpected events (divorce, illness, etc) and therefore needs to continue working to pay the mortgage or help support a relative. Then, of course, there are those who spent a lifetime living beyond their means and are now living the financial consequences of their past decisions. And, let us not forget, the few who have an unquenchable financial thirst and will never feel that they have enough money to retire comfortably.
So how is this workforce of hangers-on affecting all of us? For one, employers are paying higher wages to a retiree than to a newbie with less experience, which arguably increases the price of goods and services an organization provides. In another sense, retirees who keep working continue to earn and spend money, consequently pouring more back into the economy.
Perhaps there is no point to lament this situation because it is this generation’s new reality and we need to start finding ways to work with potential retirees, not against them. After all, the older generation passes on its knowledge and experience, an investment in human capital, which contributes to economic growth. And, desperation brings innovation; meaning that with age-of-retirement employees remaining in the workforce longer, the younger workers are being forced to be increasingly creative, resulting in a more innovative workforce. We’re entering a new renaissance of the entrepreneur, and the older employees of the workforce may just be the ones we have to thank for this economic catalyst.
Going, Going, Not Gone: A New Workforce Economy,
Good article. I see this happening in many professions where I live. It’s easy to resent those boomers who seem like they’ll never retire. However, it’s hard to blame any single individual for staying in the workforce – everyone’s situation is different.
Yes, it’s their own stupid fault for living beyond their means and not planning for retirement. However, it’s irrational for us to expect someone to live a lower standard of living when they have the ability to keep earning.
So blame the generation collectively, but not any individual geezer.
I often fail to understand the lack of compassion that “youngsters” seem to inflict on seniors who have to continue to work and don’t look at possible extenuating circumstances. As with all mankind, they want to lump everyone into a “one size fits all” and think that they’re all either greedy or out to get them. Take the time to get to know some of these people and listen to their stories….you might learn something.
For myself, I gave up my possible security for a chance at happiness and the love of my life, which was taken from me way too soon. Was this worth it…you bet! Will some condemn me for not doing better….probably, but they’ve also not walked a mile in my shoes.
So yes, I’ll either have to work longer or just decide to cut a few more corners…..and my shoulders are broad enough to block the “opinions” of some.
I agree to a certain extent with your comments in terms of giving youngsters a chance at getting a job. In fact, I retired early (62)for this reason. However, I was invited to return by my ex-employer to do a job that required experience and know how that my young replacement did not have.
On a historical note, after the 2nd world war there was a lot of angst about the flood of women who had taken up jobs that our returning soldiers needed and dire consequences were predicted which came to nowt as the English say. This situation will iron itself out I am confident as your article suggests.
Most older workers are either working because they have to or they want to. Since we are talking about baby boomers, it does have a huge impact on the number of jobs. Being 65 going on 66 years old, I feel great, but only want to work nearly 5 more years.
Very good and balanced article. At 55, I could retire with a full government pension but choose not to for many reasons. For one, a divorce at age 45 means I now have a mortgage to pay for, not to mention that the money I could have put away in the last 10 years went to my children’s college/university education and weddings. But more to the point, I like working and I still feel that 55 is too young to retire. And when I do in approximately two years, I hope to still be in the workplace on a part-time basis not only to help financially but to keep me from becoming a couch potato. I cannot imagine spending the next 30 years of my life as a ‘stay at home’ retiree.