20 April 2024

More Older Americans Staying on Job

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According to the Bureau of Labor Statistics, 17.7 percent of people 65 or older are still working, compared with 11.7 percent in 1995. Of course, part of this increase could be due to a growing fear felt by many Americans about financial insecurity during retirement. Survey data have shown that fears about outliving one’s savings are factoring into retirement planning. They are even prompting 34 percent of workers 60 or older to say they plan to work until they die or are too sick to continue, according to a recent Wells Fargo survey.

Some workers just want a gradual transition, whether for financial reasons or to keep working in jobs in which they can contribute and help train the next generation. Slightly more than 40 percent of U.S. workers hope to cut back hours or transition to a less-demanding position before retirement, according to a 2015 report from the Transamerica Center for Retirement Studies.

One option offered by a small number of employers is “phased retirement,” which allows retiring workers to go part time while also mentoring their incoming replacement, providing for a smoother transition. The Society for Human Resource Management puts the number at 8 percent.

In other cases, employers are eschewing formal arrangements in favor of short-term contracts. For federal workers, Congress passed legislation in 2012 creating a phased-retirement program, and the Office of Personnel Management formalized the rules last year.

The personnel office has finalized only 16 applications for phased retirement from workers at the Library of Congress, NASA, the Broadcasting Board of Governors and the Energy Department. It expects to soon receive 12 from the Smithsonian Institution. That’s from a federal workforce where 45 percent of employees are 50 or older. The personnel office has stressed that it is up to a federal agency to decide whether and when to offer a phased-retirement option.

Tancred Lidderdale, 62, is one of the initial 16 who chose phased retirement. He works for the Energy Department as an economic forecaster, applying highly complex math models to oil and natural-gas markets. He has had an integral role in building these models for two decades. Lidderdale will work part time for the next two years. But after nearly three years of waiting, many other federal workers are wondering whether the program will even arrive in time for them.

One explanation for the delays is that agreements must first be struck between management and labor unions. Email and phone requests for comment to AFGE, the largest federal labor union, were not returned. There are also just basic difficulties of scale. How do you offer the same option to all workers when not all jobs are created equal?

Click here to access the full article on The Columbus Dispatch.

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