Not Quietly Quitting But Quietly Returning, Older Workers Are Changing Work And Retirement

“I thought you retired,” I say teasingly to an old friend. He turns swiftly and in a somewhat irate tone, responds, “I am retired!” The 66-year old ‘retired’ engineer goes on, “I simply do what I want, when I want.” Pausing, he says, “And, for now, I want to work a bit.”

His words sum it up. For many, today’s retirement looks a lot like work. The difference? Work in their retirement years is now on their terms, not their employer’s or even on society’s expectations. My friend is not alone. Many recent retirees are saying they want to work at least “a bit“ in retirement. More than 2 million people retired during the first 18 months of the pandemic. They now appear to be heading back to work in what might be best described as quiet returning.

Today, data shows that the quiet return to work of onetime retirees are at higher levels than before the spring 2020 alarm bells caused many to run for the exits. At a time when “quiet quitting” — doing just enough to meet your job’s position description, but no more, has become a strategy for some to maintain their idea of quality of life, why would people who have worked decades and achieved what has been sold as nirvana, a.k.a. retirement, come back to work?

In part, the reasons for return includes what many might assume, money worries and the looming threat of inflation. Survey data from Joblist do indicate that 27% of those quietly returning to work were doing so because they needed the money and another 21% feared that inflation was eroding their retirement nest egg. However, the data identify the primary reason for quietly returning to be neither money nor inflation woes.

A full 60% of retirees returning to work said they were simply “looking for something to do.” According to Joblist CEO Kevin Harrington, “Many people struggle with how to spend their time after they retire and miss the social connection that work provides.”

While many scoff at the idea of work being more than a means to pay for living, work serves other critical functions that go well beyond money. We are very likely to spend more waking hours with our work colleagues than with our family and friends; consequently, work is a large part of our social world. Work structures our days, if not always to our liking. But while life may seem short, days with nothing to do or without a sense of purpose can feel endless.

And, as I observed in a previous article, socially isolating during the pandemic effectively became a fire drill for retirement planning. Unfortunately, during that time many of us discovered that we were far from prepared for unstructured days, weeks, and years no matter how long our ‘to do’ list was for retirement.The Joblist data show that more than half (52%) of those quietly returning were happy to be going back to work, 42% even said they were excited to clock back in on the job.

Similar to younger workers, retirees heading back to work were looking for flexibility. The vast majority (79%) wanted to work part-time. And, half of respondents might make many employers’ hearts sing — saying that work could either be in-person or remote. Moreover, as Joblist’s Harrington comments, older workers quietly returning, “Could be good news for employers. Retirees are an overlooked talent pool that companies can and should engage in order to combat labor shortages.”

That said, returning to work is not without some trepidation. Nearly 30% of retirees surveyed by Joblist expressed nervousness, stress, and frustration about returning to work. Getting back into the rhythm of work after being retired can be challenging. Just consider how difficult it has been for many people of all ages to go back to the workplace after the pandemic. Retirees may have multiple and compounding concerns. These might include feelings of being ‘rusty’ after being away from work for a year or many years.

How do you write a resume with several decades of varied experience? How to prepare for an interview with someone your child’s or even grandchild’s age? What is appropriate compensation? And, sadly, many will confront valid fears of not being accepted by employers and younger colleagues in workplaces that may be rampant with ageism.

Some call those making this quiet return back to work ‘unretired.’ Not incorrect in phrasing, but incomplete in capturing the full impact of what those quietly returning may have on our social narrative of retirement. They are not simply unretired, they are pioneers. These older adults are inventing something that is neither our current idea of retirement or of work. They are quietly creating something else — a new life stage altogether that sees the retirement age of today as a mile marker, not an exit.

I lead the Massachusetts Institute of Technology AgeLab (agelab.mit.edu). Researcher, teacher, speaker and advisor – my work explores how global demographics, technology

Source: Not Quietly Quitting But Quietly Returning, Older Workers Are Changing Work And Retirement

Critics by Cheryl Winokur Munk

Start with those that have publicly pledged to level the playing field for older workers. More than 1,000 companies, including Humana, Microsoft, Marriott International and McDonald’s, have signed on to the AARP Employer Pledge program. Eligible companies can’t have had discrimination lawsuits within the past five years. They must also agree to recruit across diverse age groups and consider all applications equally, regardless of age. AARP also offers a jobs board to help match experienced candidates with companies who have committed to having an age-diverse employee base.

The Age-Friendly Institute also certifies companies that are considered best-in-class for workers aged 50 and above. Applicants go through an extensive review and certification process, which includes committing to “meaningful employment, development opportunities and competitive pay and benefits for employees 50+.” The list, last updated in April, includes Aetna, Home Depot, Macy’s, Starbucks and Wells Fargo.

Just be aware that these lists can change, and don’t give you the whole picture, so be sure to do your due diligence on any company you are considering, said Lance Robertson, a former U.S. Department of Health & Human Services Assistant Secretary for Aging, who is now a director at Guidehouse, a global consulting and IT services provider.

Older job candidates should look at a company’s job ads, which can offer insights into the company’s culture and if it’s really age inclusive, said Paul Lewis, chief customer officer at Adzuna, an online job search engine. Older job seekers should look for language that specifically states the company doesn’t discriminate based on age, he said.

Conversely, seniors should be wary of companies that use the term “digital native” in a job description or set a cap on the number of years of experience as a job requirement, said Karina Hertz, strategic communications director of AARP.

Additionally, websites like LinkedIn, Facebook and Glassdoor can be helpful in finding resources and information about a company’s employment practices, including its commitment to older workers. And talking to current and former employees is also a good opportunity to gather information, Robertson said.

It’s also worth checking out what tools, if any, a company offers to help older workers find jobs. Humana, for example, has a career site, with a section on “jobs after retirement” where seniors can search for jobs, learn about popular roles for older workers, and get answers to FAQ, including what the impact of working could be on their Social Security benefits.

Workers who are younger than what the Social Security Administration considers their full retirement age and earn more than the yearly earnings limit, $19,560 in 2022, may have their benefits reduced. This means a deduction of $1 from your benefit payments for every $2 you earn above the annual limit, for those who are under full retirement age all year.

After doing your basic research, be sure to talk to a company’s human resources department to get a deeper understanding of the company’s policies, Robertson said.

Seniors should ask about the kinds of support the company provides to family caregivers and what flexible work options exist in the event an employee needs to take on or increase existing responsibilities. This can include an array of options including job-sharing, compressed work weeks, remote work, hybrid work and project-based work, said Chantelle Johnson, associate vice president of workforce and culture at Humana.

It’s also important to find out whether the company offers networking groups for seniors, which is a good way for mature workers to connect and benefit from shared experiences, she said. Approaches to team collaboration, and learning and development opportunities, are important to know about in advance, said Ronni Zehavi, CEO of HiBob, an HR tech platform.

“Even if someone has been in the workforce for 30 years or longer, it doesn’t mean that they have acquired all the wisdom they possibly want,” he said. It’s equally important to inquire how this learning is accomplished, since many older adults aren’t as tech-savvy as their younger counterparts. Find out whether the company offers other options beyond online and app-based training, Robertson said. And health-care options, including dental, vision and pharmacy benefits, become even more important as people age, so that’s a must to understand, he added.

Related contents:

Daniel Andrews joins push to mobilise ‘hidden army’ of older workers 3AW

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Work-Life Balance: What Really Makes Us Happy Might Surprise You

Finding the right work-life balance is by no means a new issue in our society. But the tension between the two has been heightened by the pandemic, with workers increasingly dwelling over the nature of their work, its meaning and purpose, and how these affect their quality of life.

Studies suggest people are leaving or planning to leave their employers in record numbers in 2021 – a “great resignation” that appears to have been precipitated by these reflections. But if we’re all reconsidering where and how work slots into our lives, what should we be aiming at?

It’s easy to believe that if only we didn’t need to work, or we could work far fewer hours, we’d be happier, living a life of hedonic experiences in all their healthy and unhealthy forms. But this fails to explain why some retirees pick up freelance jobs and some lottery winners go straight back to work.

Striking the perfect work-life balance, if there is such a thing, isn’t necessarily about tinkering with when, where and how we work – it’s a question of why we work. And that means understanding sources of happiness that might not be so obvious to us, but which have crept into view over the course of the pandemic.

Attempts to find a better work-life balance are well merited. Work is consistently and positively related to our wellbeing and constitutes a large part of our identity. Ask yourself who you are, and very soon you’ll resort to describing what you do for work.

Our jobs can provide us with a sense of competence, which contributes to wellbeing. Researchers have demonstrated not only that labour leads to validation but that, when these feelings are threatened, we’re particularly drawn to activities that require effort – often some form of work – because these demonstrate our ability to shape our environment, confirming our identities as competent individuals.

Work even seems to makes us happier in circumstances when we’d rather opt for leisure. This was demonstrated by a series of clever experiments in which participants had the option to be idle (waiting in a room for 15 minutes for an experiment to start) or to be busy (walking for 15 minutes to another venue to participate in an experiment). Very few participants chose to be busy, unless they were forced to make the walk, or given a reason to (being told there was chocolate at the other venue).

Yet the researchers found that those who’d spent 15 minutes walking ended up significantly happier than those who’d spent 15 minutes waiting – no matter whether they’d had a choice or a chocolate or neither. In other words, busyness contributes to happiness even when you think you’d prefer to be idle. Animals seem to get this instinctively: in experiments, most would rather work for food than get it for free.

Eudaimonic happiness

The idea that work, or putting effort into tasks, contributes to our general wellbeing is closely related to the psychological concept of eudaimonic happiness. This is the sort of happiness that we derive from optimal functioning and realizing our potential. Research has shown that work and effort is central to eudaimonic happiness, explaining that satisfaction and pride you feel on completing a gruelling task.

On the other side of the work-life balance stands hedonistic happiness, which is defined as the presence of positive feelings such as cheerfulness and the relative scarcity of negative feelings such as sadness or anger. We know that hedonic happiness offers empirical mental and physical health benefits, and that leisure is a great way to pursue hedonic happiness.

But even in the realm of leisure, our unconscious orientation towards busyness lurks in the background. A recent study has suggested that there really is such a thing as too much free time – and that our subjective wellbeing actually begins to drop if we have more than five hours of it in a day. Whiling away effortless days on the beach doesn’t seem to be the key to long-term happiness.

This might explain why some people prefer to expend significant effort during their leisure time. Researchers have likened this to compiling an experiential CV, sampling unique but potentially unpleasant or even painful experiences – at the extremes, this might be spending a night in an ice hotel, or joining an endurance desert race.

People who take part in these forms of “leisure” typically talk about fulfilling personal goals, making progress and accumulating accomplishments – all features of eudaimonic happiness, not the hedonism we associate with leisure.

The real balance

This orientation sits well with a new concept in the field of wellbeing studies: that a rich and diverse experiential happiness is the third component of a “good life”, in addition to hedonic and eudaimonic happiness.

Across nine countries and tens of thousands of participants, researchers recently found that most people (over 50% in each country) would still prefer a happy life typified by hedonic happiness. But around a quarter prefer a meaningful life embodied by eudaimonic happiness, and a small but nevertheless significant amount of people (about 10-15% in each country) choose to pursue a rich and diverse experiential life.

Given these different approaches to life, perhaps the key to long-lasting wellbeing is to consider which lifestyle suits you best: hedonic, eudaimonic or experiential. Rather than pitching work against life, the real balance to strike post-pandemic is between these three sources of happiness.

By: Lis Ku , Senior Lecturer in Psychology, De Montfort University

Source: Work-life balance: what really makes us happy might surprise you

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Why You May Be Overly Optimistic About Your Social Security Benefits

Frank and Joan Shortland

As humans, we tend to be overoptimistic on everything from our driving ability to investment prowess. It’s perennial problem when it comes to money and retirement management.

A recent study found that people routinely over-estimate their Social Security benefits. Two researchers from the University of Michigan found that “Americans face the challenges of retirement with varying degrees of preparation. Evidence indicates that that many individuals may not be making the best possible choices with respect to their Social Security and retirement savings.”

Why do people expect more than what they actually receive in benefits? Here’s what the researchers found:

  • Most retirees find that the amount of Social Security retirement benefits they receive is lower than what they had expected before claiming.
  • Not appropriately adjusting for early or delayed claiming could contribute to expectation biases about retirement benefits. In particular, this would be most relevant for those with lower levels of education.
  • Current workers recognize that they do not have a good idea of what their future retirement benefits will be. Forty-nine percent of our survey respondents declare having no knowledge about their benefit amount.
  • The average expectation bias for monthly retirement benefits in our sample is $307, which equals 27% of the average forecasted benefit for this sample (in current dollars).
  • Men display lower expectation bias and are less likely to overestimate their retirement benefits.

How to avoid these misconceptions? You need to estimate benefits based on the age you intend to claim them and your earnings record. A good place to start is Social Security’s benefits estimator tool.

Since people are living longer and are generally healthier in older age, the Social Security Administration raised the full retirement age to 67 for people born in 1960 or later, up from 65. You can apply for benefits as early at 62, although your benefit would be reduced by 30%. On the other hand, if you can wait until age 70, you will get 124% of the monthly benefit because you delayed getting benefits for 36 months.

Consider how each scenario might impact your retirement planning. Preparing for different outcomes now is the best way to help protect your savings – and peace of mind – down the line.

Planning today can make a big difference in your retirement lifestyle tomorrow. Once you leave the workforce, the years that follow can be all that you want them to be—if you pave the way with a comprehensive financial plan that includes your Social Security income.

Your plan should be based on what you know today and flexible enough to adapt to any changes—like unforeseen personal circumstances or developments that come out of Washington.

Social Security can be a valuable tool to help bridge any gap you may have between your expected sources of income and your expenses.

POINTS TO KNOW

  • Social Security has features for retirees that other retirement savings plans don’t have.
  • When creating your retirement plan, be sure to include your Social Security benefits as an income source.
  • It’s important to have a retirement budget: Itemize your income sources and expected expenses.

Follow me on Twitter or LinkedIn. Check out my website or some of my other work here.

 

Source: Why You May Be Overly Optimistic About Your Social Security Benefits

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Citations: 

 1, 5, 7, 8 AARP: “How is Social Security funded?” February 11, 2021 https://www.aarp.org/retirement/social-security/questions-answers/how-is-social-security-funded/

2 SSA: “Your Retirement Benefit: How It’s Figured” by Social Security Agency, January 2021 https://www.ssa.gov/pubs/EN-05-10070.pdf

3 SocialSecurity.gov: “My Account” information collected from www.socialsecurity.gov/myaccount

4 AARP: “How much longer will Social Security be around?” September 22, 2020 https://www.aarp.org/retirement/social-security/questions-answers/how-much-longer-will-social-security-be-around/

6 Statista: “Number of retired workers receiving Social Security in the United States from 2010 to 2020” by Statista Research Department, January 19, 2021 https://www.statista.com/statistics/194295/number-of-us-retired-workers-who-receive-social-security/

9 SSA: “Retirement Benefits: Retirement Age Calculator” by Social Security Agency https://www.ssa.gov/benefits/retirement/planner/ageincrease.html

10 SSA: “Retirement Benefits: Starting Your Retirement Benefits Early” by Social Security Agency https://www.ssa.gov/benefits/retirement/planner/agereduction.html

11 SSA: “Retirement Benefits: How Delayed Retirement Affects Your Social Security Benefits” by Social Security Agency https://www.ssa.gov/benefits/retirement/planner/1960-delay.html

12 IRS.gov: “Are Social Security Benefits Taxable?” February 13, 2017 https://www.irs.gov/newsroom/are-social-security-benefits-taxable

13, 14 SSA: “Retirement Benefits: Income Taxes And Your Social Security Benefit” by Social Security Agency https://www.ssa.gov/benefits/retirement/planner/taxes.html 

15 Investopedia: “Do Earnings from a Roth IRA Count Toward Income?” By Denise Appleby, April 8, 2021 https://www.investopedia.com/ask/answers/05/iraearningsmagi.asp

11 Disruptive Questions Millennials’ Singles’ Day Poses For Your Retirement And For Business

It’s the biggest shopping day on the planet. Alibaba alone chalked up $38 billion in sales for 2019. No, it’s not a religious, patriotic holiday, or even the one time biggest online shopping day of the year, Black Friday – it’s Singles’ Day in China and much of the world. But what’s good for Alibaba, may not be good for your retirement and many industries.

Started as Bachelors Day by students at China’s Nanjing University in 1993 as a kind of ‘anti-Valentines’ day to celebrate being single, the day evolved into Singles’ Day. November 11 or 11/11 was chosen because it provided the powerful symbolism of four 1’s.

And, while the celebration of being single may have begun in China, the lifestyle and business of ‘singledom’ is spreading fast. Retailers in Southeast Asia, Europe, and North America are all riding the singles wave. According to Forbes writer Sergei Klebnikov, Adobe projects that nearly 25% of retailers plan to offer a Singles Day special. Amazon, Apple, Bed Bath & Beyond, Estee Lauder, Foot Locker, Happy Socks and countless other retailers are all too happy to jump on the singles lifestyle bandwagon.

Today In: Money

But, there is more to Singles’ Day then a retail push. Singlehood points to a larger disruptive demographic trend that is shaping lifestyles, your retirement, and the even the markets we invest in today.

According to Pew Research, 61% of young Americans under the age of 35 are without a partner. Up sharply from 33% in 2004. Likewise, the number of people living alone in Canada has doubled over the last three decades. In Europe more than half of the households in Paris, Munich, and Oslo are households of one. Entire nations, such as Sweden and Denmark have more than half of their populations living alone.

So what might this new demographic landscape mean for lifestyles, retirement, and countless industries?

To continue the theme of Singles’ Day on 11/11, here are 11 questions about life tomorrow in a world of one.

1.    Who will buy the homes of retirees today that are typically two, three or more bedrooms? Will homes with one bedroom become the new normal and homes with two bedrooms be considered a spatial luxury – and those with three-plus simply a waste? How might real estate developers rethink communities that are predominantly households of one?

2.    How many wine glasses will you buy? Watch out household goods industry, rather, than buying a set of eight, or even four glasses, as well as all the other things that stock household cabinets and closets – we may buy only one or two of what we need. For those retirees thinking they are going to downsize by handing off that china set with service for 12 to their kids – good luck. As I observe in a previous article, no one wants your stuff.

3.    Who will you buy luxury gifts for? Singles’ Day certainly shows that people are willing to buy things, but will they buy luxury? Will luxury brands begin crafting a new vision of the virtue of treating yourself in contrast to decades of sales based upon treating that special someone as well as marking engagements and anniversaries? Perhaps a whole new socially acceptable celebration of buying your own watch for your retirement will become a new normal.

4.    Is a party of one the new normal for leisure? Will restaurants work harder to make a retired single more comfortable and not feel alone? Hotels, cruise ships, and theme parks have traditionally marketed to couples and families. What will leisure look like in a world of one?

5.    Will being a pet parent mean more than ever? If a partner is not moving in, will pets become your significant other in youth and later life, thereby getting an even bigger boost of wallet share?

6.    How will you share the burden? Managing a household has many moving parts. Typically tasks are split between a couple by conscious decision and often by default. Will retired singles over time learn to do it all, or will there be a growth industry for services once shared with that special someone?

7.    Will there be even fewer children? The birthrate continues to tumble. The industrialized world, as well as many industrializing nations, are seeing a record drop in the number of children being born each year. Will the celebration of one, mean none?

8.    Does singlehood provide greater career freedom? If there is only one person in a household, does that reduce the fear of losing a job or easily moving from one position that does not quite fit? Employers may find a new mobility in single employees who do not need to worry, nor manage, the financial risks of supporting multi-person household. However, will that newfound freedom in youth, present a longer-term financial risk in retirement for singles?

9.    How will you finance retirement alone? Having a partner may increase household consumption and costs – but it may also provide more income and retirement savings. The longevity risk of ones life span outliving ones wealth span may be greater for lifelong singles.

10. Who will care for you? Most of us, at some point, will require care in older age. A partner, or adult child, typically provides family care to an elderly loved one. In a world where neither may exist, does that present a new challenge for individuals planning retirement – and perhaps a new demand for private and public services?

11. Does alone necessarily mean lonely? While it is possible to be alone, but not lonely, will a society with a growing number of households of one portend an even greater rise in the global epidemic of loneliness and social isolation for young and old alike?

Follow me on Twitter.

I lead the Massachusetts Institute of Technology AgeLab (agelab.mit.edu). Researcher, teacher, speaker and advisor – my work explores how global demographics, technology and changing generational attitudes are transforming business and society. I teach in MIT’s Department of Urban Studies & Planning and the Sloan School’s Advanced Management Program. My new book is The Longevity Economy: Unlocking the World’s Fastest Growing, Most Misunderstood Market (Public Affairs, 2017) . Follow me on Twitter @josephcoughlin.

Source: 11 Disruptive Questions Millennials’ Singles’ Day Poses For Your Retirement And For Business

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Alibaba CEO Daniel Zhang discusses Singles’ Day and the company’s strategy.
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