For many, retirement can be difficult due to loss of income and lack of sufficient financial resources. Mandatory retirement, where an employee is forced to retire at a certain age, is considered an injustice and a form of age discrimination. While some retirees are financially stable due to pensions and social security, many struggle with daily expenses on a fixed income. Those forced into retirement may have difficulty finding new employment due to age discrimination from employers. Programs to help older workers transition to new employment opportunities after mandatory retirement would help address this injustice.
Retirement has changed significantly from a reprieve from work to a continuation of work years due to various financial pressures. Factors influencing retirement decisions include health, finances, lifestyle preferences, and ability to perform a job. With increasing lifespans, retirement planning must account for potentially high healthcare costs. Many baby boomers are choosing to delay full retirement in order to maintain income and independence in the face of dwindling social security funds. Employers are also adapting to aging workforces through modified training programs. Comprehensive reforms are needed to address the impending challenges of supporting larger retired populations.
Women often face unique financial challenges compared to men, such as longer lifespans requiring retirement savings to last longer, lower lifetime earnings, and more time out of the workforce for caregiving responsibilities. As a result, women are more likely to have smaller financial cushions and be vulnerable to unexpected obstacles. It is important for women to educate themselves about personal finances, make their own financial decisions, seek professional help when needed, and implement plans to ensure financial security for themselves and their families throughout their lives.
Financial Recovery Strategies For Tough TimesBarbara O'Neill
The document provides strategies for financial recovery in tough economic times following the Great Recession. It discusses how many Americans were personally affected by income and benefit losses. The "New Normal" is characterized by slow economic growth, low stock returns, high unemployment, and constrained household spending. Key themes are the era of "broken promises" as promised pension, health, and other benefits have been reduced or eliminated. The document recommends strategies such as working longer, accelerating debt repayment, saving additional funds to offset losses, considering career changes, spending less, and investigating alternative benefits since promised benefits can no longer be relied upon.
This document discusses strategies for coping with financial insecurity caused by broken promises from employers regarding income and benefits. It begins by providing context on the increasing prevalence of benefit cuts and reductions experienced by many public and private sector workers. Ten specific coping strategies are then presented: 1) work longer, 2) retire while working, 3) accelerate debt repayment, 4) save the shortfall, 5) consider career changes, 6) invest more aggressively, 7) spend less and shop savvy, 8) investigate new benefit alternatives, 9) keep an eye on government benefits, and 10) focus on factors you can control rather than those you can't. The document emphasizes the need to proactively plan for financial stability in response to diminished
Retention of Elite Players, Krakow 2014John Milton
John Milton presented on the challenges facing elite athletes in making the transition from junior to senior careers. Some of the main reasons athletes drop out include financial pressures, lack of suitable coaching/training environments, and insufficient preparation for the demands of the transition. Research showed the most common reasons were lack of finances and preparation. Interviews with Czech squash players who dropped out echoed these findings, citing financial issues, coaching/training environment problems, and lack of direction as their primary barriers. Developing strong relationships within the "athletic triangle" of athlete, parents, and coach was found to improve chances of successful transition to a professional career.
This document discusses the importance of life and disability insurance. It begins by noting that many employees are underinsured or lack insurance, leaving them vulnerable if the primary wage earner dies or becomes disabled. Specifically, only around half of workers have short or long-term disability coverage, and 41% of adults lack any life insurance. It then examines reasons for this, such as financial priorities, lack of knowledge, and procrastination. The document emphasizes that disability is more common than most people assume, with a 33% chance of a 6-month disability, and that disabilities usually stem from common illnesses not covered by workers' compensation. Finally, it notes the high financial toll of disabilities, with costs potentially totaling around $1 million
This document outlines strategies for maximizing Social Security benefits in retirement. It discusses four common mistakes retirees make: 1) Underestimating the real value of Social Security benefits, which can provide a guaranteed stream of inflation-adjusted income. 2) Rushing to collect benefits early without understanding the long-term costs of reduced payments. 3) Not understanding how a married couple can integrate their benefits to maximize total income and protections. 4) Being unaware that Social Security benefits may be partially taxable and subject to an "income tax torpedo" effect. The document provides details on Social Security claiming strategies and options for married couples to help optimize their benefits over a full retirement.
Retirement has changed significantly from a reprieve from work to a continuation of work years due to various financial pressures. Factors influencing retirement decisions include health, finances, lifestyle preferences, and ability to perform a job. With increasing lifespans, retirement planning must account for potentially high healthcare costs. Many baby boomers are choosing to delay full retirement in order to maintain income and independence in the face of dwindling social security funds. Employers are also adapting to aging workforces through modified training programs. Comprehensive reforms are needed to address the impending challenges of supporting larger retired populations.
Women often face unique financial challenges compared to men, such as longer lifespans requiring retirement savings to last longer, lower lifetime earnings, and more time out of the workforce for caregiving responsibilities. As a result, women are more likely to have smaller financial cushions and be vulnerable to unexpected obstacles. It is important for women to educate themselves about personal finances, make their own financial decisions, seek professional help when needed, and implement plans to ensure financial security for themselves and their families throughout their lives.
Financial Recovery Strategies For Tough TimesBarbara O'Neill
The document provides strategies for financial recovery in tough economic times following the Great Recession. It discusses how many Americans were personally affected by income and benefit losses. The "New Normal" is characterized by slow economic growth, low stock returns, high unemployment, and constrained household spending. Key themes are the era of "broken promises" as promised pension, health, and other benefits have been reduced or eliminated. The document recommends strategies such as working longer, accelerating debt repayment, saving additional funds to offset losses, considering career changes, spending less, and investigating alternative benefits since promised benefits can no longer be relied upon.
This document discusses strategies for coping with financial insecurity caused by broken promises from employers regarding income and benefits. It begins by providing context on the increasing prevalence of benefit cuts and reductions experienced by many public and private sector workers. Ten specific coping strategies are then presented: 1) work longer, 2) retire while working, 3) accelerate debt repayment, 4) save the shortfall, 5) consider career changes, 6) invest more aggressively, 7) spend less and shop savvy, 8) investigate new benefit alternatives, 9) keep an eye on government benefits, and 10) focus on factors you can control rather than those you can't. The document emphasizes the need to proactively plan for financial stability in response to diminished
Retention of Elite Players, Krakow 2014John Milton
John Milton presented on the challenges facing elite athletes in making the transition from junior to senior careers. Some of the main reasons athletes drop out include financial pressures, lack of suitable coaching/training environments, and insufficient preparation for the demands of the transition. Research showed the most common reasons were lack of finances and preparation. Interviews with Czech squash players who dropped out echoed these findings, citing financial issues, coaching/training environment problems, and lack of direction as their primary barriers. Developing strong relationships within the "athletic triangle" of athlete, parents, and coach was found to improve chances of successful transition to a professional career.
This document discusses the importance of life and disability insurance. It begins by noting that many employees are underinsured or lack insurance, leaving them vulnerable if the primary wage earner dies or becomes disabled. Specifically, only around half of workers have short or long-term disability coverage, and 41% of adults lack any life insurance. It then examines reasons for this, such as financial priorities, lack of knowledge, and procrastination. The document emphasizes that disability is more common than most people assume, with a 33% chance of a 6-month disability, and that disabilities usually stem from common illnesses not covered by workers' compensation. Finally, it notes the high financial toll of disabilities, with costs potentially totaling around $1 million
This document outlines strategies for maximizing Social Security benefits in retirement. It discusses four common mistakes retirees make: 1) Underestimating the real value of Social Security benefits, which can provide a guaranteed stream of inflation-adjusted income. 2) Rushing to collect benefits early without understanding the long-term costs of reduced payments. 3) Not understanding how a married couple can integrate their benefits to maximize total income and protections. 4) Being unaware that Social Security benefits may be partially taxable and subject to an "income tax torpedo" effect. The document provides details on Social Security claiming strategies and options for married couples to help optimize their benefits over a full retirement.
This document outlines strategies for maximizing Social Security benefits in retirement. It discusses four common mistakes retirees make: 1) Underestimating the real value of Social Security benefits, which can provide a guaranteed stream of inflation-adjusted income. 2) Rushing to collect benefits early without understanding the lifelong impact of reduced payments. 3) Failing to understand how a married couple can integrate their benefits to maximize total income and protections. 4) Being unaware of how Social Security benefits may be partially taxed and reduce other retirement income in some cases. The document provides details on Social Security claiming strategies and benefit types to help retirees make optimal claiming decisions.
Retirement Preparations in a New Age of Self-EmploymentAegon
The self-employed have a flexible vision of retirement. They plan on working past traditional retirement age, easing into retirement, and fully retiring at an older age. The Aegon Retirement Readiness Survey 2016
Changing Expectations for the “Retirement” YearsPam Bakopoulos
The document discusses changing expectations for retirement in modern times. It argues that current conceptions of retirement are outdated and not aligned with economic realities. Many older workers are capable and desire to keep working, but face pressure from social norms and institutions to retire. To address labor and skill shortages, more older workers need to be encouraged to remain in the workforce through addressing ageism and misconceptions about their abilities. Retirement norms must be reevaluated based on individual functional abilities rather than chronological age alone.
6 Retirement Questions Government Employees Should Be AskingBravias Financial
There are emotions and worries tied into retirement. When it comes to government workers, they have additional challenges to consider when evaluating their benefits and options. As financial professionals who specialize in helping government employees transition from work to
retirement, Bravias Financial understands that you may have questions about when and how you can retire. This special
report addresses some common questions and presents some strategies to help you prepare for a more
comfortable retirement.
The document discusses how increased choice in UK pension benefits has created behavioral complications for members. It examines potential behaviors people may exhibit given more freedom over how they access pension funds. While choice is welcomed, there is concern that too much could overwhelm people and reduce optimal outcomes. The key question is how much choice is dangerous and how can its effects be managed. The document suggests employers understand member behaviors to plan accordingly and provide support through engagement programs to help people make informed retirement decisions.
Virtual report launch: Slipping between the cracks? Retirement income prospec...ILC- UK
Find out more and see a recording of the event here: https://ilcuk.org.uk/report-launch-the-forgotten-generation-retirement-income-prospects-of-generation-x/
New "flip book" eMagazine is available for you right here. The value of insurance is front and center in this new publication which features an easy to use flip book feature. VantagePoint magazine is an independently produced quarterly publication that offers valuable information for mature adults (55+).
Retirement Reimagined: Longevity and the Future of Financial Well-BeingCognizant
As life expectancies grow, banks and insurers need to deliver products and services that provide people with financial security throughout their extended sunset years. Here’s how the financial services industry can remain relevant and vital as life journeys elongate and grow more fluid.
This document discusses private retirement savings in the United States. It begins by outlining the current state of retirement savings, noting that about 20% of Americans do not save and that Social Security is projected to run out of funds. The document then defines key terms like retirement, retirement savings, private savings, and sufficient savings. It estimates that individuals will need around $500,000-$1,000,000 in savings to retire comfortably. The document analyzes factors like taxes, debt, and human behavior that influence private savings, and says the three main economic perspectives will be considered to evaluate solutions to increasing retirement savings.
Reimagining Retirement: Longevity and the Future of Financial ServicesCognizant
As life expectancies grow, here's how banks and insurers can deliver products and services that provide people with financial
security throughout their extended sunset years.
The Art of Managing Retirement AssumptionsForman Bay LLC
A retirement plan is built on a set of assumptions that can't be validated until it's too late. One key to successful retirement planning is carefully setting assumptions and revising them often.
Financial planning strategies towards retirement as perceived by potential r...Alexander Decker
This document examines financial planning strategies for retirement as perceived by university lecturers in the Niger Delta region of Nigeria. It discusses various strategies like personal savings accounts, fixed deposits, cooperative societies, stock investments, and pension plans. The study aimed to determine if lecturers' perceptions of these strategies differed based on factors like university type or demographics. A questionnaire was administered to 227 lecturers across 5 universities, and statistical tests found significant differences in perceptions of personal savings but not the other strategies. The study recommends consideration of these findings for effective retirement planning.
Aegon Retirement Readiness Report - The New Flexible RetirementAegon
The concept of retirement is rapidly changing. As people live longer, retirement will become a more active life stage, with more people looking to blend work and leisure. But not all countries are acting on this global trend.
The document provides an introduction to retirement planning basics. It discusses why individuals need to take retirement planning into their own hands given uncertainties around social security and pension benefits. It also notes the need to plan for unforeseen medical expenses in retirement and potential estate planning goals. The document outlines key factors to consider when determining how much money is needed for retirement, including desired retirement age, expected annual income needs, current savings, expected investment returns, and any pension benefits.
This document discusses the importance of carefully setting assumptions when planning for retirement. It notes that retirement projections rely on assumptions about retirement date, living expenses, inflation rates, investment returns, and life expectancy. Even small differences in assumptions can significantly impact projections. The document advises regularly revising assumptions as new information becomes available. It also recommends collaborating with an advisor who can help determine reasonable assumptions based on individual circumstances and revise plans accordingly over time.
The document discusses the importance of carefully setting retirement planning assumptions and revising them over time as new information becomes available. It notes that small differences in assumptions like rates of return or inflation can significantly impact retirement projections. It recommends collaborating with an advisor to set reasonable assumptions that account for an individual's specific situation and goals. Regularly revising assumptions is important to keep the retirement plan on track as circumstances change.
#140.pdfJournal of Public Economics 116 (2014) 73–88.docxmayank272369
1) The document analyzes distribution decisions made by public sector employees in North Carolina who separate from employment prior to retirement.
2) Using administrative data, it finds that over two-thirds of public sector workers under age 50 who separated maintained their pension accounts rather than withdrawing funds, suggesting low leakage of retirement savings.
3) However, it also finds that the lump sum distribution was larger than the present value of the annuity for over 70% of separations, indicating many workers may be forgoing higher potential retirement income.
A retirement plan is built on a set of assumptions that can't be validated until it's too late. One key to successful retirement planning is carefully setting assumptions and revising them often.
The document summarizes the key findings of a survey conducted by the Gandalf Group for the Healthcare of Ontario Pension Plan regarding Canadians' views on retirement security. The survey found that most respondents are concerned about a potential retirement income crisis due to a lack of adequate workplace pensions and government support. Respondents believe this could increase senior poverty and burden taxpayers. They prefer pensions that guarantee income and most support expanding the Canada Pension Plan or implementing the proposed Ontario Retirement Pension Plan.
This document outlines strategies for maximizing Social Security benefits in retirement. It discusses four common mistakes retirees make: 1) Underestimating the real value of Social Security benefits, which can provide a guaranteed stream of inflation-adjusted income. 2) Rushing to collect benefits early without understanding the lifelong impact of reduced payments. 3) Failing to understand how a married couple can integrate their benefits to maximize total income and protections. 4) Being unaware of how Social Security benefits may be partially taxed and reduce other retirement income in some cases. The document provides details on Social Security claiming strategies and benefit types to help retirees make optimal claiming decisions.
Retirement Preparations in a New Age of Self-EmploymentAegon
The self-employed have a flexible vision of retirement. They plan on working past traditional retirement age, easing into retirement, and fully retiring at an older age. The Aegon Retirement Readiness Survey 2016
Changing Expectations for the “Retirement” YearsPam Bakopoulos
The document discusses changing expectations for retirement in modern times. It argues that current conceptions of retirement are outdated and not aligned with economic realities. Many older workers are capable and desire to keep working, but face pressure from social norms and institutions to retire. To address labor and skill shortages, more older workers need to be encouraged to remain in the workforce through addressing ageism and misconceptions about their abilities. Retirement norms must be reevaluated based on individual functional abilities rather than chronological age alone.
6 Retirement Questions Government Employees Should Be AskingBravias Financial
There are emotions and worries tied into retirement. When it comes to government workers, they have additional challenges to consider when evaluating their benefits and options. As financial professionals who specialize in helping government employees transition from work to
retirement, Bravias Financial understands that you may have questions about when and how you can retire. This special
report addresses some common questions and presents some strategies to help you prepare for a more
comfortable retirement.
The document discusses how increased choice in UK pension benefits has created behavioral complications for members. It examines potential behaviors people may exhibit given more freedom over how they access pension funds. While choice is welcomed, there is concern that too much could overwhelm people and reduce optimal outcomes. The key question is how much choice is dangerous and how can its effects be managed. The document suggests employers understand member behaviors to plan accordingly and provide support through engagement programs to help people make informed retirement decisions.
Virtual report launch: Slipping between the cracks? Retirement income prospec...ILC- UK
Find out more and see a recording of the event here: https://ilcuk.org.uk/report-launch-the-forgotten-generation-retirement-income-prospects-of-generation-x/
New "flip book" eMagazine is available for you right here. The value of insurance is front and center in this new publication which features an easy to use flip book feature. VantagePoint magazine is an independently produced quarterly publication that offers valuable information for mature adults (55+).
Retirement Reimagined: Longevity and the Future of Financial Well-BeingCognizant
As life expectancies grow, banks and insurers need to deliver products and services that provide people with financial security throughout their extended sunset years. Here’s how the financial services industry can remain relevant and vital as life journeys elongate and grow more fluid.
This document discusses private retirement savings in the United States. It begins by outlining the current state of retirement savings, noting that about 20% of Americans do not save and that Social Security is projected to run out of funds. The document then defines key terms like retirement, retirement savings, private savings, and sufficient savings. It estimates that individuals will need around $500,000-$1,000,000 in savings to retire comfortably. The document analyzes factors like taxes, debt, and human behavior that influence private savings, and says the three main economic perspectives will be considered to evaluate solutions to increasing retirement savings.
Reimagining Retirement: Longevity and the Future of Financial ServicesCognizant
As life expectancies grow, here's how banks and insurers can deliver products and services that provide people with financial
security throughout their extended sunset years.
The Art of Managing Retirement AssumptionsForman Bay LLC
A retirement plan is built on a set of assumptions that can't be validated until it's too late. One key to successful retirement planning is carefully setting assumptions and revising them often.
Financial planning strategies towards retirement as perceived by potential r...Alexander Decker
This document examines financial planning strategies for retirement as perceived by university lecturers in the Niger Delta region of Nigeria. It discusses various strategies like personal savings accounts, fixed deposits, cooperative societies, stock investments, and pension plans. The study aimed to determine if lecturers' perceptions of these strategies differed based on factors like university type or demographics. A questionnaire was administered to 227 lecturers across 5 universities, and statistical tests found significant differences in perceptions of personal savings but not the other strategies. The study recommends consideration of these findings for effective retirement planning.
Aegon Retirement Readiness Report - The New Flexible RetirementAegon
The concept of retirement is rapidly changing. As people live longer, retirement will become a more active life stage, with more people looking to blend work and leisure. But not all countries are acting on this global trend.
The document provides an introduction to retirement planning basics. It discusses why individuals need to take retirement planning into their own hands given uncertainties around social security and pension benefits. It also notes the need to plan for unforeseen medical expenses in retirement and potential estate planning goals. The document outlines key factors to consider when determining how much money is needed for retirement, including desired retirement age, expected annual income needs, current savings, expected investment returns, and any pension benefits.
This document discusses the importance of carefully setting assumptions when planning for retirement. It notes that retirement projections rely on assumptions about retirement date, living expenses, inflation rates, investment returns, and life expectancy. Even small differences in assumptions can significantly impact projections. The document advises regularly revising assumptions as new information becomes available. It also recommends collaborating with an advisor who can help determine reasonable assumptions based on individual circumstances and revise plans accordingly over time.
The document discusses the importance of carefully setting retirement planning assumptions and revising them over time as new information becomes available. It notes that small differences in assumptions like rates of return or inflation can significantly impact retirement projections. It recommends collaborating with an advisor to set reasonable assumptions that account for an individual's specific situation and goals. Regularly revising assumptions is important to keep the retirement plan on track as circumstances change.
#140.pdfJournal of Public Economics 116 (2014) 73–88.docxmayank272369
1) The document analyzes distribution decisions made by public sector employees in North Carolina who separate from employment prior to retirement.
2) Using administrative data, it finds that over two-thirds of public sector workers under age 50 who separated maintained their pension accounts rather than withdrawing funds, suggesting low leakage of retirement savings.
3) However, it also finds that the lump sum distribution was larger than the present value of the annuity for over 70% of separations, indicating many workers may be forgoing higher potential retirement income.
A retirement plan is built on a set of assumptions that can't be validated until it's too late. One key to successful retirement planning is carefully setting assumptions and revising them often.
The document summarizes the key findings of a survey conducted by the Gandalf Group for the Healthcare of Ontario Pension Plan regarding Canadians' views on retirement security. The survey found that most respondents are concerned about a potential retirement income crisis due to a lack of adequate workplace pensions and government support. Respondents believe this could increase senior poverty and burden taxpayers. They prefer pensions that guarantee income and most support expanding the Canada Pension Plan or implementing the proposed Ontario Retirement Pension Plan.
2. 2
POST-RETIREMENT- WORKINGTHE AGES OUT
Abstract
Many people will spend most of their adult lives working, the benefits of being employed allows
for financial independence and stability. Inevitably, as a person gets older, they may consider the
possibility of retiring from their professional career. Retirement for many can be voluntary or
mandatory; voluntary retirement is the ability to choose when to retire. Mandatory or enforced
retirement, the decision as to when one retires is made by the employer rather than the employee.
However, the decision to retire often depends on how financially stable life after work will be.
For many, retirement can be a burden, as the choice of when to retire is taken from them due to
financial restrains and lack of post-retirement income. Many are forced to seek alternative means
of income because social security and pension plans are not enough to cover their daily expenses.
For the retirees, it can be very difficult to find another means of income; many are forced back
into the job market (at a significantly lower pay). It is an injustice to these workers to be forced
to reenter the job market, often outside their professional career. Although, age discrimination is
prohibited under the Age Discrimination in Employment Act (ADEA) enacted in 1967 and the
amendment of this law in 1986 prohibited mandatory retirement in most sectors. Both types of
retirement, voluntary or mandatory can be a burden for those who are not financially well-off, as
they face great hardship due to the lack of income and lack of programs available to aid retirees.
Keywords: employment, voluntary, age discrimination, retirement, injustice, mandatory
3. 3
POST-RETIREMENT- WORKINGTHE AGES OUT
Post-Retirement- Working The Ages Out
In the 1800s, many people worked well into the later stages of their lives, it was very rear
for many average income workers to leave their jobs and nearly non-accruing for the low income
workers. Many continued working until they became unable to work or find work, eventually as
they get older and cannot work anymore; they rely on family member for their well-being; for
many, retiring meant losing their income. One of the earliest accounts of retirement is the United
States dates back to the industrial era; in 1875 a railroad company (The American Express
Company) establishes the first retirement plan, which allowed their employees the ability to
retire. Many companies soon followed and retirement became a possibility for many. However,
as the cost of living is increasing over the years, it is becoming increasingly difficult for many to
retire. In the United States, for many workers in the later stages of their adult life (older-
workers), the decision to retire from their well-invested professional career often depends on
their financial sustainability post-retirement. For those whose obtained financial sustainability, it
will be easier to adjust to life after work, thus they may also choose to retire at an earlier age
(when they have earned enough to afford retirement). According to Robert (1982), “Generally,
the individual's attitude toward retirement is closely allied to his or her financial situation. The
higher the expected retirement income, the more favorable the attitude” (p. 122). Individuals
with a high expected income post retirement generally have a positive attitude when it comes to
retirement, they may choose to retire as early as they want, this ability to choose when to retie is
voluntary (wanted) retirement. These individuals often plan their lives after retirement to insure
they have the means (money) to sustain them. Many may invest in high yielding pension plans or
have other forms of gain income, post their retirement. However, for those whose have not
obtained financial stability and are not expected to receive income at can cover their daily
4. 4
POST-RETIREMENT- WORKINGTHE AGES OUT
expense, retirement may seem as a burden and they will have a negative attitude towards
retirement. An injustice occurs when someone who has not obtained financial sustainability is
forced to retire from their professional career due to the company’s policy regarding retiring and
age. For the many retirees, whose decision to retire was voluntary, the conditions around their
decision to retire can be perceived as mandatory or enforced retirement. Many of the elderly who
are forced retirement are perceived as incapable to work due to their age or appearance, being
placed into these descriptive categories is an injustice to the elderly. Elderly often face physical
health concerns associated with aging, however, due to mandatory retirement, the psychological
(mental) health of the retirees are negatively affected. Retirees often battle stress, depression,
anxiety and many more psychological concerns as a result of unwanted retirement.
For many professionals, retiring, makes adjusting to life after work difficult for someone
who is not financially well off as they may often seek another form of income to aid their
expenditures such as daily expense, medical obligation and mortgages obligation. For those
seeking employment at an older age, it could be quite difficult to find employment and for the
ones who do find employment, they’ll have to adjust to working at a lower salary. Because some
employer uses the ‘healthy hire’ approach, it could be quite difficult for the older community to
seek employment. Wagenaar, Kompier, Houtman, Bossche, and Taris (2015) suggested that well
invested, older and in good health workers are less likely to gain reemployment after retirement,
instead employers would rather the younger, under invested workers also in good health.
Employers would not pay more for the more invested and older employees. The bias companies
have towards the older and more invested constitutes an injustice, their research shows that,
“Due to a healthy hire effect, these latter workers, but also older workers, are unlikely to regain
employment” (p. 332). Since many of the elder community have bills to pay such a mortgages,
5. 5
POST-RETIREMENT- WORKINGTHE AGES OUT
medical, etc. they relied on a steady and stably income, for those who choose to retire, losing
their income can have negative impaction, often their post-retirement benefits and social security
cannot cover their expense.
Retirement is often views as a difficult transition for many. Certain circumstance can
restrict the decision making processes (pressure from peers, improper planning, etc.), one may
choose to hold off on retiring and continue their employment until there are financially able to
retire. According to Szinovacz and Davey (2005), “About one third of our sample of retirees
perceived their retirement as forced. This result casts doubt on previous models treating
retirement as a voluntary transition” (p. 46). Retirees that examined the conditions which that led
into their retirement conclude that their decision to retire was either forced or wanted, many
perceived their retirement perceived their retirement as forced (mandatory) instead of voluntary.
Forcing the elder community to retire and replacing their income with lower from of income
(benefits) that cannot cover their expenses is an injustice to the elderly community. Lacking of
post-retirement benefits to cover their expense, the retiree may seek alternative means of income;
however, due to their age it may be very difficult to find alternative means of income and an
injustice for them to do so. Robert (1982) states, “Hiring policies, particularly in manufacturing,
tend to discriminate against hiring older workers” (p. 123). There are many professionals
(skilled-workers) in very varies fields, manufacturing typically looks for employees at the peak
of their economical (most efficient and useful) years. The age of when someone retires may vary,
in most case they are in the later stages in their life, they may fall into the older worker group
(less economical) and in manufacturing, and companies tend to have some bias regarding the
older worker group. There are others with a positive view on retiring, they may choose to end
their professional career as soon as financial possible, for those who have not obtained financial
6. 6
POST-RETIREMENT- WORKINGTHE AGES OUT
stability, they may choose to remain employed in order to keep their income and maintain their
livelihood. Voluntary retirement allows them to do so, to continue working at ones will and retire
when they want too; however, mandatory or forced retirement does not allow one to choose
when they may retire.
Mandatory retirement can be considering a form of age discrimination, denying the older
people the opportunity to continue reaping the benefits of employment constitutes an injustice.
Assigning characteristic to a group based on their age is unfair to members of that group; for
employer that requires mandatory retirement for their employees, it is a form of discrimination
that is implanted in the employee’s labor contract. Some view mandatory retirement as favorable
(employers) and some view it as unfavorable (employee). The employers views on mandatory
retirement is favorable as it allows more job opportunity at lower cost due to high salary usually
paid to employees with longer tenure, it is a way of cutting down their cost in a sense. Many
employers use mandatory retirement to dismiss ‘aged’ and ‘over paid’ employees. Higgins
(1998) writes, Michael Marks’ (an Accountant) problem was not that he was an older worker.
His problem was that he had been a successful older worker. Through his years of experience,
Marks had garnered a higher salary than his younger cohorts at Loral Corp.’s office and that high
salary was grounds enough to get rid of him (p. 34). For someone who is well invested and loyal
to an employer, over the years they’ll earn a higher salary. Many employers value productive
employees with extensive knowledge of their operations. However, when an employer
terminates an employee because they have earned a substantial salary, their actions constitutes an
injustice, especially when the use mandatory or forced retirement as a way of terminating highly
paid professional employees. Many of the people in retirement losses their substantial salary as
they leave their employers, because of that they face a dramatic decrease in income. Employers
7. 7
POST-RETIREMENT- WORKINGTHE AGES OUT
that enforce mandatory retirement may favor it because it allows them to reduce their cost.
However, many of their employees may view mandatory retirement as discriminating against
their age, since reaching a certain age is ground for retirement or the polite way of parting ways
with an employer.
There are many people that are affected by mandatory retirement, they are often faced
with a troubling dilemma, and they do not have enough income to cover their daily expenditure.
For those who have well invested pension plans such as defined-benefit plans and defined-
contribution plans, along with social security and little expenditure, post retirement may be quite
pleasant and enjoyable. On the other hand, for the people who are not financially well off, they
relied on social security as their of post retirement income. According to Bruce (2013),”Social
Security is likely to be an important part of retirement income for many clients. A recent survey
found it was a major source of income for 70 percent of retirees and a minor source for 23
percent. Of current workers, 77 percent expect it to be a major or minor source of income in
retirement” (p .27). Social security is a major from of income of retiree (70% of retirees) and of
the current workers, 77 percent of them are certain that social security will be a source of income
for them. However, due to the higher cost of living, social security is not enough to cover
expense of the retirees. Szinovacz and Davey (2005) states, “Programs are needed to help
somewhat disabled and displaced older workers find employment opportunities after forced
retirement” (p. 46). There is a need for more programs that help older workers, who were forced
into retirement, find alternative employment opportunities. As retirees are often faced with much
expenditure, they may face great hardship without sufficient income to sustain.
8. 8
POST-RETIREMENT- WORKINGTHE AGES OUT
Conclusion
For many the transition into retirement can be quite difficult, due to the loss of their
salary and the mounting expenditures. An injustice occurs when someone who has not obtained
financial sustainability is forced to leave their professional career. Many of the people in the
older community may struggle to find alternative means of income to cover their expenditure,
post retirement for them may be considered a burden. Mandatory retirement can be considering a
form of age discrimination, denying the older people the opportunity to continue reaping the
benefits of employment constitutes an injustice. For retiree who perceived their retirement as
mandatory, they believe view that as discriminating against their age. Similarly, as many retirees
will seek alternative means of income (reentering the work force), they may face difficult as
many employers would not hire them. Retirees face much injustice; it is very difficult to gain
employment, as they are discriminated because the fall into a certain group (elderly), they
struggle to cover their expenditure due to the lack of income and the lack of post-retirement
services does not adequately allow them to enjoy the benefits for all their years with an
employer. Often many retirees faced psychological health concerned due to mandatory
retirement, as the stress of post-retirement and lack of income can led to poverty. Retirees
struggle to maintain their livelihood’s as they lose they salary’s, many retires have medical
obligations that consume a large position of their social security benefits, leaving very little
income to sustain them.
9. 9
POST-RETIREMENT- WORKINGTHE AGES OUT
References
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Szinovacz, M. E., & Davey, A. (2005). Predictors of perceptions of involuntary retirement. The
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