Have you listened to our Podcast yet? Start listening today to maximize your retirement years! CLICK HERE

CLICK HERE to hear our podcast!

Retirement Wisdom

Retire Smarter

retirement blogs

Are You Ready for the Gig Economy in Retirement?

· ·

By Joe Casey

Retirement is clearly changing. For many, it includes part-time work or a second career in the gig economy. For decades in the U.S., it was commonly seen as a period of leisure following a long career. But today, work is playing a larger role in retirement. And it’s for a variety of reasons, some driven by economics and some by the pursuit of satisfaction – or a mix of both. There’s a strong desire for options that provide more flexibility, reduced hours and a gradual transition to an exit from work at some point – a way to scale back from the grind, but stay engaged, too.

However, policies which were well-intended in an earlier era, now limit work options for retirees. And these legal complexities and are also contributing to a major shift in the nature of the employment relationship, with pros and cons for retirees. Significant trends are changing how both employees and employers think about retirement – and specifically working during retirement. Retirement has evolved from a one-time, permanent event to a gradual process, that in itself, contains multiple phases.

Living Longer and Working Longer

Overall, people in the U.S. are living longer. According to The National Center for Health Statistics, the average additional life expectancy in the U.S., after reaching age 65 in 1950 was 12.8 years for men and 15.0 for women. By 2014, it had increased to 18.0 additional years for men and 20.5 for women. And they want to work longer, too. Surveys show that 70 to 80% of Americans want to work in their retirement, in some fashion.

The Jobs – They Are A-Changin’

The financial crisis of 2008 has accelerated a change in the nature of employment itself, particularly for older workers. A Bloomberg View piece by Justin Fox last year noted that since the financial crisis, many traditional full-time jobs have not returned, but some have been replaced by alternative work arrangements in the so-called “gig economy” by consultants, contractors and part-time workers, who are often employed by a third party. A recent study found that there has been such strong growth in this area in the U.S. economy that nearly “all of the net employment growth in the U.S. economy from 2005 to 2015 appears to have occurred in alternative work arrangements” – and that growth in alternative work “has been sharpest for older workers, those 55 to 75 years old” (Katz and Krueger, 2016, p.7).

It’s good news that some progressive companies, and the Federal government, are implementing innovative flexible work arrangements for older workers, such as phased retirement, job sharing and retiree pools. But most older workers do not work for progressive companies, or for the government. And one study found that only as “31% of retirees who are working in retirement, do so with the same employer” (Rappaport, 2014b, p. 40). So most will need to build their own “bridge job” to retirement.

Simultaneously, organizations are showing strong demand for project-based work, which often aligns with the skills and experience of older workers, especially highly educated ones. This type of work fits with flexible arrangements and creates opportunities for older workers to build bridge jobs between the time they are eligible to retire and when they fully exit the workforce and/or are eligible for Medicare. Such arrangements also are more easily arranged informally or through third party employers, which sidesteps some of the legal and benefit plan roadblocks that concern companies. On the flip side, they usually come with reduced pay, a loss of the ability to continue to contribute to employer retirement plans and receive company medical (and other) benefits. The unclear fate of the Affordable Care Act adds uncertainty about how many who transition to this type of work will secure health care post COBRA coverage and before Medicare.

How You Can Take Charge – and Prepare

The reality is that more and more workers will need to take charge of their retirement transition and the role that work will play in their retirement. Just as the introduction of the 401k plan shifted financial responsibility, working in retirement today can be appealing, but it requires a great deal of initiative on the part of workers to ensure that they are well-prepared and competitive in the project-based economy. This newer “gig economy” provides opportunity, but downsides and challenges as well.

What can older workers who want or need to continue to work in retirement do to prepare?

  1. Stay Healthy. Building the right wellness and healthy lifestyle practices that can influence modifiable factors is the most critical step.
  2. Stay Current. The next most important area is keeping skill sets up to date and relevant to employers. That means a commitment to lifelong learning and taking advantage of neuroplasticity. It also means being open to new arenas where there is shifting demand and that may include retraining.
  3. Cultivate Strong Networks. Relationships and contacts play a crucial role, especially in the “gig economy.” For older workers that means investing time in building and maintaining their personal and professional networks. Since most of those working in retirement do so with new employers, older workers should attend to networks both within their organizations and externally.
  4. Engage Employers in Discussion. Organizations prefer certainty so that they can plan. Ted Beck recommends being transparent with employers about the desired end date when negotiating flexible work arrangements to reduce uncertainty for the employer.
  5. Plan Ahead. While the majority of people want to continue working, when their transition to retirement comes may not be up to them. For a variety of reasons, 49% of retirees surveyed retired years an average of 3 years earlier than they planned. It’s wise to have a back-up plan in place.

The best summary is the phrase “common sense is not common practice.” Thinking ahead, planning and preparing can give you a leg up and a viable “second act” in retirement.

 

 

References

Beck, T. (2017, March 19). How to get your employer to let you retire gradually. The Wall Street Journal. Retrieved at https://wsj.com

Cahill. K.E., Giandrea, M.D. & Quinn, J.F. (2015a). Retirement Patterns and the Macro economy, 1992–2010: The Prevalence and Determinants of Bridge Jobs, Phased Retirement, and Reentry Among Three Recent Cohorts of Older Americans. Gerontologist, 55(3): 384-

Fox, J. (2016, April 4). The gig economy is powered by old people. Retrieved from https://www.bloomberg.com/view/articles/2016-04-04/the-gig-economy-is-powered-by-old-people

Helman, R. Adams, N., Copeland, C. & VanDerhei, J. (2014, March). “The 2014 Retirement Confidence Survey: Confidence rebounds—for those with retirement plans,” EBRI Issue Brief, no. 397. Retrieved from

Johnson, R. W. (2011). Phased retirement and workplace flexibility for older adults: Opportunities and challenges. The ANNALS of the American Academy of Political and  Social Science, 638(1), 68-85.

Katz, L.F and Krueger, A.B. (2016). The Rise and Nature of Alternative Work Arrangements in the United States, 1995-2015 (Working Paper No. 22667). National Bureau of Economic Research. Retrieved from https://www.nber.org/papers/w22667

Rappaport, A.M. (2014b). How Americans are managing postretirement risk and what employers should do to respond. Benefits Quarterly,30(4), 8-20.

 

 

Will You Retire like the Jetsons?

· ·

By Joe Casey

There’s a lot going on with technology for older adults. It is changing day to day retirement life in many ways. And it’s rapidly becoming another aspect of adjusting to retirement. How high tech will your life in retirement be when you’re ready to retire?

If you are of a certain age, like I am, you grew up watching the Jetsons. It was fun to wonder what would become part of real life in the future. Since we’re now in the future, let’s see how things are stacking up – and what you should factor into your planning for retirement.

While it’s a good bet that you’re not retiring with the Spacely Sprockets pension plan, many Jetsonian visions have already come to fruition. You may have a smartwatch. You probably talk with family and friends on FaceTime. Is that a Roomba I hear vacuuming in the background? Next door, is that the annoying neighbor (who is always the first on the block with the latest gadget) with a robot lawnmower going while he’s chilling on the deck. And, according to Bloomberg, flying cars are in the works in Silicon Valley.

There’s more on the horizon with advances in technology for older adults that may change how you envision your living space in retirement.

Helpful Robots

Remember, Rosie, The Jetson’s robot maid?

While we already have Alexa from Amazon, and Looj, the gutter cleaner from i-Robot, there are other promising robot assistants expected before year-end, such as Buddy and Jibo.

Like Siri and Alexa, Buddy and Jibo leverage voice recognition, but also have facial recognition capabilities. They appear to be useful hubs for managing smart home devices and monitoring using telepresence. My sense is that you can do today much of what the early versions can do with your iPhone, but they are worth keeping an eye on as their functionality expands with advances in artificial intelligence. (As an aside, my wife adds that any additional intelligence will be a bonus for me, artificial or otherwise).

Smart Home Technologies

The Internet of Things is rapidly evolving and will offer connected devices that will make lives easier in many ways. (And new worries. While I used to worry about my in-laws getting along, what about my refrigerator and my toaster?).

This is a space to watch over the next few years. With 10,000 baby boomers retiring every day, companies are inventing technology-related products and services tailored for where retirees live. The market for technology for seniors alone is projected to increase tenfold to $20 billion in the year 2020. For example, Aging 2.0 is a San Francisco based organization that works with entrepreneurs and big companies alike, and others to spur innovation on technology for retirees. Joseph Coughlin, of MIT’s Age Lab, points out that smart home technology promises to deliver many real benefits to retirees. However, he notes that it will come will additional costs and privacy risks to manage.

Health Monitoring Devices

Hero, a company based in Brooklyn has built a” smart appliance to manage and dispense medications. Phillips recently introduced a new ‘health watch’, which tracks vital signs, activity and sleep patterns.

Wearables

To go with your smart home, you’ll want to upgrade your socks. Here’s a phrase that’s new to me – ‘smart socks’. Fitness company Sensoria has created smart socks with an activity tracker app to help people monitor walking distance and pace in rehabbing from injury or illness. The University of Arizona is working on smart socks that alerts people to issues relating to diabetes.

A Philadelphia company, Active Protective, is developing a very cool wearable sensor-based device with micro airbag technology to protect people who are at risk for hip fractures. They also have a sports version in the works.

An ‘Old School’ Tool Brought to the Home

An interesting one is not new at all, but it’s being installed in more homes.  Elevators.  A recent Boston Globe article noted that the installation of home elevators has “increased 40 % over the past five years in Massachusetts.” While costly, having had hip surgery last year, I can appreciate the value of this at home, even if it’s not the cool glass tube version from The Jetsons.

A Final Thought

A big question most people face early in planning for life in retirement in ‘Where do I want to live?’ Now, a related question is ‘And how smart do I want my home or condo to be?’ While it’s not crystal clear to what extent yet, it’s clear that smart home technology and robot devices will be part of your living space in retirement. While it may not be to the full Rosie level anytime soon, they will offer convenient ways to get certain things done. It’s worth considering how you want to leverage these tools to make your retirement life easier.

References

Matney, Luca. (2015, August 15). Buddy is a really, really, really ridiculously cute family robot. Techcrunch. https://techcrunch.com/2015/08/31/buddy-is-a-really-really-ridiculously-cute-family-robot/

Orlov, Laurie. (2016, March 18). Five technology innovations for older adults. Aging in Place Technology Watch. https://www.ageinplacetech.com/blog/five-new-technology-offerings-aging-place-march-2016

Teitel, B. (2016, May 10). The rich are different. They have home elevators. The Boston Globe. Retrieved from bostonglobe.com

Vance, A. and Stone, B (2016, June 9). Welcome to Larry Page’s secret flying car factories. Retrieved from bloomberg.com

Three Things You Can Do to Help Your Relationship in Retirement

· ·

by Joe Casey

In their article “The Gray Divorce Revolution”, the researchers note that the rate of divorce among older Americans 65 and over, has more than doubled in recent years – in contrast to the divorce rates in younger groups which decreased or remained flat. Multiple factors are contributing to this trend. Life spans have increased and perhaps more time provides more opportunities for conflicts – or more time for partners to feel like they have grown apart. Cultural norms have evolved and divorce is much less stigmatized and more readily accepted today. As shared tasks change over the life course, couples may feel that they have less in common and less reason to stay together after children leave the home.

Clearly there is an economic impact of divorce. Divorce has also been associated with adverse social and health outcomes in older adults. In his research on marriages, John Gottman cited a lengthy list of adverse consequences on both parties, including affecting physical and mental health, a higher rate of accidents, and fatal diseases. Ouch.

On the Back Nine – and I Don’t Have Time to Whine

What’s going on? Besides the trends noted earlier, what other factors lead to divorce among older adults? Stanford professor Lauren Carstensen’s Socio-emotional Selectivity Theory postulates that as time horizons are perceived to be shorter, people are less willing to focus on the negative and want to focus more on positive, meaningful endeavors.

Does it make some spouses more likely to look past the inevitable irritants of daily married life, which may be amplified as they may now be spending more time together? Or does it make others more likely to seek greener pastures with their remaining time? (Dear John, Life’s too short…to spend any more of it with you!).

Life changes a lot in retirement. There is some evidence that unlike the other relationships that older adults have with friends, there is “an increase in spousal negativity over time.” Personality factors that were assets in earlier phases of marriage, may not be as important as couples enter a different phase of life. And a greater similarity in personality was found to be associated with “more negative slopes in marital satisfaction trajectories.” (Um, Honey, how’s the slope of our marital satisfaction trajectory? Ok, I’ll ask Alexa).

Any of The Four Horsemen Can Mess Up Your Ratio

The relative levels of positive and negative behaviors are the heart of the matter. One study found that how couples resolve conflict matters, finding that “in older marriages, the resolution of important conflicts was less negatively emotional and more affectionate than in middle-aged marriages.” Gottman’s research found that the ratio of positive to negative behaviors is critical, ranging from 5:1 for stable marriages and 0:8 for unstable ones. Specifically, Gottman found that couples who were on a path to divorce exhibited a high rate of problematic behaviors such as “criticism, defensiveness, contempt and stonewalling”, which he aptly dubbed “The Four Horsemen of the Apocalypse.”

Gottman advises us to be mindful of the importance of giving full attention and responsiveness. This can be a challenge with the degree of distractions we all face with technology today. According to Gottman’s research, a key in the positive to negative ratio is how often one partner “turns toward” their partner in daily interactions versus “turning away.”

Focus On Your Behaviors

So, put aside what you see your partner doing – concentrate on what you do:

  1. Give full attention to your partner. Turn toward him or her when they offer to interact.
  2. Avoid The Four Horsemen – dial it way back on criticism, defensiveness, contempt and stonewalling.
  3. Mind your Positive to Negative Ratio (perfection is not the goal – it’s 5:1, not 5:0).

On a personal note, we’ve celebrated our 36th anniversary and this topic is of great interest to me, as I’d like to keep raising my game. Researching the topic further has provided food for thought on how I can improve my “turning toward” rate. The NBA playoffs can wait.

 

Joe Casey is a former senior HR executive pursuing his Second Act career as a retirement coach. He writes for The RW Blog, a retirement blog at retirementwisdom.com

 

References

Birditt, K.S., Jackey, L.M.H. & Antonucci, T.C. (2009). Longitudinal patterns of negative relationship quality across adulthood. Journal of Gerontology: Psychological Sciences, 64B (1),55-64.

Brown, S.L., & Lin, I.-F., (2012). The gray divorce revolution: rising divorce among middle-aged and older adults, 1990–2010. Journals of Gerontology Series B: Psychological Sciences and Social Sciences, 67(6), 731–741.

Carstensen, L.L. & Mikels, J.A. (2005). At the intersection of emotion and cognition: aging and the positivity effect. Current Directions in Psychological Science, 14 (3),117-121.

Ellin, A. (2015, October 30). After full lives together, more older couples are divorcing. The New York Times. Retrieved from https://nytimes.com

Gottman, J.M. (1998). Psychology and the study of marital processes. Annual Review of Psychology, 49,169-197.

Shiota, M.N. & Levenson, R.W. (2007). Birds of a feather don’t always fly farthest: similarity in Big Five personality predicts more negative marital satisfaction trajectories in long-term marriages. Psychology and Aging, 22(4), 666-675.

 

Mindset – the Path to Growth in Retirement

· ·

by Denis Wuestman

In helping organizations create better and more efficient work models, one thing that I help them focus on is the mindset shift that has to take place for changes to stick. While this sounds a little “soft” what I am referring to is the fundamental belief that there is always a better way to do your work AND, as a direct result, for people to grow and expand their knowledge and skills. If they think and “act” that way, then will succeed.

In the book “Mindset” by Carol S. Dweck, PhD [i] she identifies the benefits of having a “growth mindset”.   In short, people that cultivate this type of mindset (and they can do it!) will continue to get better at what they do.

In thinking about this and seeing it in practice with teams and managers, I continually remind them and myself of the need to have a real purpose for this mindset shift. In short, they have to feel strongly about what they want to accomplish. In my opinion, without this feeling and focus, the mindset shift will not get a real chance to succeed.

Retirement Attitude

So too can this be applied to the way we think about our retirement life. It is during this stage that our attitude and our purpose become important to having a happier and more successful retirement. The stronger the perception of what we expect of retirement life and, how we align our beliefs and attitudes, gives that expectation a real chance of becoming a reality and continuing our growth as a person.

Like in business, mindset shift takes work but can be very rewarding. I find five important elements to help this shift succeed:

  • The “shift” has to be important to you.
  • Take small steps – don’t try and “boil the ocean”. Build momentum.
  • Repetition is your friend – actions become more part of us if we make them habits by doing them over and over again.
  • Be patient. Remember, “if at first you don’t succeed…… “ By the way, you are always learning and growing.
  • Get a thinking partner!   This is where a good coach, whether in business or in retirement, can help you. A friend of mine gave me a gem of a saying : “Got a Gap – get a Partner”.

Partnering to Grow

If you think about your career or parts of your life – there are times when a good partner can make all the difference. When trying to make a mindset shift, whether in business or in retirement, a “Thinking Partner” can make all the difference.   A good coach supports your GROWTH by helping you do the following:

1) Take stock of where your today by looking at your current attitude towards retirement.

2) Identify what you want to achieve to help you close your “gaps”.

3) Set Goals by making this something reasonable and achievable for yourself.

4) Define Options (for example by helping you consider things you might have tried already but didn’t necessarily work out. You likely learned something that you might be able to use to help yourself).

5) Take Action!   While you clearly own your actions, a good coach can help you remove obstacles to taking actions, as long as the end game is important to you.   Without action – your goals are just dreams!

6) Check yourself. Monitor progress, make adjustments and keep going.

So – it is possible to achieve a positive attitude about retirement and grow in the process!   Provided it’s important to you to change: start small, repeat, be patient and look for a good “thinking partner” to help your journey!

What are your experiences and tips to help with your retirement mindset?

Listen to our retirement podcast – and bring your Growth Mindset

[i] Dweck, Carol PhD. (2006,2016) Mindset: The New Psychology of Success, Ballantine Books

5 Strategies That Can Help Older Workers Thrive

· ·

by Joe Casey

Two realities are on a collision course. A survey by Bankrate found that 70 % of non-retired respondents plan to work into retirement – and to work as long as they can. Financial necessity is a big reason, but 26% of responded that it’s because they really like to work. Another 19% answered that it was a combination of needing to work and wanting to work.[1]

Trying to Look Younger – and It’s Not Working

That’s one side of the street. Then there’s the other side. It’s tough out there, people. An article in Bloomberg Businessweek, chronicled the struggles of older workers, those over 40, in Silicon Valley. [2] The article describes the lengths that employees, who are older on a relative basis at companies where the average age is 30 or younger, are going to in order to appear younger and stay in the game. Tactics range from dressing younger to undergoing cosmetic surgery. (In my case, cosmetic surgery won’t help, so I’m donning a hoodie today instead).

Who’s Smarter?

The article quotes a remark made by a prominent young (hoodie-wearing) CEO that “Younger people are just smarter” as an example of the beliefs at the top that can create a strong cultural vibe in a company. This statement is telling. It’s also absurd, as most sweeping generalizations are. (I occasionally notice young people doing less than smart things, but, hey, that just may be me). The number of legal complaints filed against the largest technology companies in California over the past 8 years on age-related bias are “28 percent higher than complaints of racial bias. And they are also 9 percent higher than those of gender bias.” [3] (Silicon Valley has also faced scrutiny over its lack of diversity, not only in engineering roles but in supporting non-technical functions as well).[4]

The Toll on Out Groups

That can exact a toll on employees who are perceived to be members of ‘out-groups’. In their article “The Social Psychology of Health Disparities,” Schnittker & McLeod highlighted the association between perceived discrimination and the health of members of racial, ethnic, and gender minority groups, including chronic conditions and cardiovascular issues. Notably, the perception of potential discrimination is associated with increased anxiety, which in turn, creates stress, which can affect health in a myriad of negative ways. Perceiving oneself as part of an ‘out-group’ can create an ongoing state of “heightened vigilance” where people are scanning the environment on alert for possible threats [5]. This continual monitoring becomes a source of stress in and of itself, consuming energy and exacting physical and mental costs

Why It Matters

You may be thinking; I don’t work in Silicon Valley – who cares? There are two reasons to care. The first is that while Silicon Valley produces our favorite tools and gadgets, it also has an influence on cultural values. (What’s cool? The latest snazzy phone. What’s not? Me.) The second reason is that it’s not just an issue in that industry. An article this summer in The Washington Post noted that ageism is not new, but there is growing resentment, and sometimes hostility, among younger generations in the workplace that many baby boomers are delaying retirement – and holding back their career progression and mobility as a result.[6] 

What You Can Do

Here are some strategies older workers can consider:

  1. Be Authentic

Stop the sillier attempts to look a lot younger. Think of people you know who are 5 to 10 years older than you and try to do this. Does it work?

  1. 2. Be Relevant

Employees whose rights are being violated should consider pursuing legal action. However, in some cases it’s worth ensuring that you are doing what you can to stay relevant. People bring solutions to the most pressing problems are usually in high demand. What are you working on? What could you be working on? What are you doing to be at the top of your game? What else can you do in the year ahead to be relevant? Do you have the right sponsor? What can you do to cultivate one?

  1. Be Healthy

Work on what you can control. In my opinion and experience, sometimes it is about age discrimination. But sometimes it’s about perceived levels of engagement and energy. If you’re not doing so already, invest in a healthy lifestyle. You know what works. Eat well. Get enough rest. Exercise consistently. Help others. Do new things.

  1. Keep Learning

Look for opportunities for mutual or reverse mentoring, where you are sharing your knowledge and experience with an up and coming colleague and he or she can do the same. An article in The New York Times recently shared an example, where an assignment editor approached a younger colleague to mentor her on how to use Snapchat professionally. [7]

  1. Change Lanes

Let’s face it, some professions do, in fact, skew young. You don’t see 49-year-old players in NBA or many 63-year-old traders on Wall Street. But there are plenty of professions and roles where wisdom and experience are real assets.

Don’t cling to corporate, if you can contribute more in other ways or in other arenas. There are trade-offs, but sometimes, there are better avenues for your time and talents.

Excuse me, while I get rid of this hoodie and hit the gym.

Listen to our podcast on retirement and second careers with ideas you can use.

[1] https://www.bankrate.com/finance/consumer-index/money-pulse-0916.aspx

2, 3 Hymowitz, C. & Burnson, R. (2016, September 8). It’s tough being over 40 in Silicon Valley: Older workers are trying lawsuits, classes, makeovers—even surgery—to keep working. Bloomberg Businessweek. Retrieved from https://bloomberg.com

4 Kang, C. & Frankel, T.C. (2015, July 16). Silicon Valley struggles to hack its diversity problem. The Washington Post. Retrieved from https://www.washingtonpost.com

[5] Schnittker, J., & McLeod, J. D. (2005). The social psychology of health disparities. Annual Review of Sociology, 75-103.

[6] DePillis, L. (2016, August 4) Baby boomers are taking on ageism — and losing. The Washington Post. https://washingtonpost.com

[7] Minsberg, T. (2016, September 10). In a reverse mentorship, seeing age though a new lens. The New York Times. Retrieved from https://nytimes.com