For years, careers advanced through three stages: Learn, Earn, Retire.
During the first stage, the primary focus was on acquiring knowledge and skills as a foundation for a thriving career. The middle stage was all about work, with a keen eye on advancement and salary increases. Then came retirement, which for most, happened around age 65.
Today, this journey is far more fluid, with more employers involved from start to finish. Life-long learning has become the new career catalyst, as businesses strive to recruit talent to help them better compete in a rapidly changing world.
With people living longer, the work runway is extending well beyond age 65. For some, it’s a choice to stay engaged in work they enjoy. For others, it’s a necessity to bolster their retirement nest egg.
Whatever the motivation, digital is creating more ways for today’s older workers to stay engaged in meaningful jobs, but at a more leisurely pace.
Our Aging Population
In 1900, life expectancy in the United States was 46.3 years for men and 48.3 years for women. By 2000, we added about 30 more years to the life expectancy clock. Looking ahead, experts predict that by the mid-2030s, life expectancy will top 90 years.
The 2030s will usher in one more stunning demographic shift. Older people will outnumber children for the first time in U.S. history. According to the U.S. Census Bureau’s projections, by 2034, there will be 77 million people 65 years and older, compared to 76.5 million under 18.
Paying for a 30+ Year Retirement
We might be living longer, but our bank accounts haven’t caught up.
While nearly 80% of our parents could count on pension income, this retirement revenue stream is disappearing. Only 23% of younger Boomers (ages 56-61) expect to receive pension income and only 38% of older Boomers enjoy that benefit.
Boomers were also the first generation to fully navigate the shift from defined benefit to defined contribution savings. Most nearing traditional retirement age have less than $200,000 stashed away in their 401K, which is short of what experts say they’ll need.
This might explain why more people are delaying retirement. According to the Bureau of Labor Statistics, in 1996, less than 46% of people age 60 to 64 were working. By 2016, this segment grew to 56% and it’s expected to eclipse 60% in just a few more years.
Digital Sets the Stage for Flexible Work Assignments
Technology, the very thing that’s posing challenges for businesses, is teeing up richer opportunities for people age 60+ to stay engaged in work as part-time consultants or contractors.
Take video conferencing, for example. Not too long ago, in order to participate fully in a team meeting, you’d need to commute to the office. Today, you can dial in, turn your camera on, and it’s almost like being there.
No doubt, as we age, speed and memory decline gradually, but our ability to connect the dots at a high level intensifies. There are many organizations who would love to tap those skills and legacy knowledge, as they fine-tune future strategies.
Donna Kastner is the founder of the Northeast Ohio-based Retirepreneur, a collaborative community for people 55+ interested in flexible and fulfilling encore careers. She is a public speaker, writer and podcaster. Visit her website at retirepreneur.com
