“For older workers, getting a new job is a crapshoot.” That’s the sobering title of a recent article on the CNBC website. The article paints a bleak picture of the employment prospects for seniors, stating that the problem of getting fired (or never getting hired) just for being old “is a problem that’s only going to get worse.”
You can access the just-published CNBC article by clicking here. We suggest you consider the implications of this report, since it may have direct impact on your plans for retirement. Surveys show an increasing number of seniors (as many as two-thirds, say some studies) plan to keep working past the age of 65 – but what if the jobs they hope to get or retain simply aren’t available? The financial impact could be severe.
CNBC reports that the American workforce is definitely getting older. In 2002, only about one-quarter of U.S. workers were over 50 – while today that statistic is growing, projected to reach more than one-third by 2022. But because the economic recovery has proved stubbornly sluggish, older workers and younger workers find themselves increasingly competing for a limited number of job openings. What’s more, since older, more senior workers are frequently paid more, there’s “a target on the back of every experienced, higher-salaried employee,” in the words of CNBC.
“Every time there’s a recession, there’s a pattern of age discrimination,” said Patricia Barnes, author of the book Overcoming Age Discrimination in Employment. Nevertheless, legal protection for senior workers facing age discrimination remains plagued with loopholes and weak enforcement. Recent legal findings have held that fired employees now have to prove that age was the main reason for a layoff, whereas it used to be sufficient merely to show that age was a contributing factor. This frees up employers to try “a wide variety of tactics to edge out older, generally more expensive workers,” says CNBC. It also surprised us to learn that the Civil Rights Act, which prohibits employment discrimination based on race, color, religion, sex, or national origin, specifically does not include age.
The hiring process can be geared in subtle ways to create barriers for older workers, especially in our modern digital economy. As CNBC says, “younger and cheaper” is what many employers are looking for in today’s competitive marketplace.
Are you planning to continue working full time or part time in your retirement years? Are you counting on keeping your present job as long as possible, perhaps until Social Security benefits reach their maximum at age 70? That’s a good strategy. But a strong retirement plan must include planning for contingencies. What would you do if you found yourself out of work and unable to replace your current income? That may be a tough question to answer, but considering your options now will pay great dividends later if your employment plans were to change through no fault of your own.
Helping you plan for the contingencies of retirement – especially the tough ones – is what we do here at AgingOptions. We work alongside our clients to help them develop a solid and comprehensive plan called a LifePlan designed to guide them into a secure and fruitful retirement. We would welcome the opportunity to do the same for you. With a LifePlan in place, all aspects of your retirement are taken into account, including legal affairs, financial plans, medical needs, housing options and family relationships. Imagine how much more confident your outlook on the future would be with such a plan in place.
Find out more by attending a free, no-obligation LifePlanning Seminar. These are offered frequently at locations throughout the Puget Sound region. We know you’ll enjoy attending one of these stimulating, information-packed events. Then if you wish we can plan a personal consultation where we can review your individual circumstances. For registration and details call our office, or click on the Upcoming Events tab on our website. We’ll look forward to meeting you at a LifePlanning Seminar soon.
(originally reported at www.cnbc.com)
