Retirement Choices Are Changing and You Can Do Something About It

In a recent report in Forbes Magazine, Mexican Billionaire Carlos Slim said the best way to get out of our Social Security dilemma is to raise the retirement age to 70. It would benefit the worlds economies by keeping many people in the workforce and producing. He claims because in the old economy, of more physical labor jobs, workers just could perform their duties and had to be replaced by younger workers. They were forced out of work and into retirement because of age. In today’s world labor is less physical and more clerical thus allowing for a longer working life.

Slim went on to say if all countries raised their retirement age to 70 it would greatly relieve the stress on budgets. But this question is mostly irrelevant for more than 50% of the American population. Statistics show that more than half of retirement age workers have little or no more saved for retirement. Even with the help of Social Security, retirees would have incomes placing them below the poverty line in income.

Retirement Choices are Changing

For more than half of the population retiring at 65 is never going to happen. Facing this fact is the first step in making the proper changes to your life plans so you can eventually retire. If you are working for yourself or still at a job it is important to be someone in demand or a valuable asset to your employer. One way to stay relevant is to stay current with the changing work environment. Staying up to date in your career means continuing education. You should absolutely consider continuing education by taking night courses or signing up for online classes.

When Social Security was new you needed to be 65 to be eligible. The trick was the government knew the average life expectancy was 60. They wanted Social Security to be a fall back if you out lived your working years. It really was designed to be an insurance policy, it was never meant to be a pension plan. The government never realized how it would be misused. Only the steady over funding of the program by a 9 to 1 payer to receiver ratio did the thing work. Today we have a 2 to 1 ratio of payer to receiver.

Today, we have a life expectancy of 73 and a eligibility of 65. This the problem that faces the federal budget and it’s something that cannot be funded well. Today, the money is there to cover the millions of Social Security checks issued every year but the day is coming when it won’t. What will happen is everyone will still receive their monthly check but there will be a percentage deduction depending on the shortfall amount and with time it will increase.

I am Living Proof of the Typical Person Not Ready for Retirement

My own situation is the typical example of the person not ready for retirement. I want to retire at age 65 but do not have the resources saved to accomplish it. I have been through it all. I have been divorced, three in college, and a 25% reduction in yearly income. These events have put me in a position of not being able to save for retirement.

The prospects of retirement are nil in my situation. Luckily, I am self employed and will be able to have a substantial income for many years. It’s my fellow workers who don’t have a side job or business they can work at in their older years. They will be struggling or depending on children or the government.

Older Employees in the Workforce

The changing landscape of the 21st century workforce is going to be reflected with a lot more gray hair being seen. How will companies adapt to an older workforce. The issues are health-care, sick-pay, job performance and pay schedules. Policies have to adjusted and brought up to date to reflect this changing workforce. In the U.S. we look on the old as out dated and favor the new and young. This will have to change. If a good employee has served the firm well, age should not be a factor. This experience and knowledge is an asset to the company and should be treat as such.

Make Yourself Valuable to the company

If you already have a job and would very much like to keep it you must make your self invaluable to the company. It’s not easy to do this, it will take a lot of hard work and determination by you.

1. Keep on learning. Continuing education will keep you in the game with the new and current. Just because your past 50 and think you know it all doesn’t mean you do. Your younger team members, who you are in competition with are more current in their education. You need to stay up to date education wise. It not only keeps you informed but shows your supervisors you care about your work and performance.

2. Better your critical skills. Office skills like time management make you valuable to the company. It shows you are using your office time more efficiently which is an asset to the company. An organized member of the team benefits all the other members and it will show in your work. A bonus of being organized is in your overall life.

3. Networking. Staying connected in today’s world has never been so important. Not only in your own company but with other employees of other companies. You will keep your finger on the pulse of your industry from a completely different point of view.

Networking is good with people at your company level but also it makes sense to extend your network with those above and below your level. You will learn new things and have a unique perspective others at your level do not.

A company involved in the community shows an interest way beyond just the money making side of business. If you are someone who volunteers and is on the boards of charitable institutions it will show your human side and help greatly in boosting your human capital. This part of networking is missed by many but the payback is potent.

4. Do you have a work ethic? A long forgotten part of a job is showing up on time and actually doing a days work. Caring about your company and contributing to its success is a foreign concept to many. Many just show up for a paycheck and that kind of attitude will be reflected in your performance and reflect in your length of service at your company.

It’s easy to be noticed by your boss if you come in early and stay later. If you pop up like your sitting on a spring at 5:00 and fly out of there, you will be noticed by your employer. On the other hand if you come in early and stay later, I guarantee you will be noticed. One of these behaviors will be rewarded, the other will not.

5. Learn a skill that is needed by your company. This new skill can be learning a foreign language or some marketing knowledge. You have to know what skill will enhance your position and help with advancement. You need to make your self so necessary to your company that you will be the last person on the layoff list.