Letters from Kay Kohl

Redefining Retirement

(UCEA InFocus, June 2007)
Kay Kohl, UCEA Executive Director and CEO

Fifteen older Americans were honored this month for creating innovative solutions to societal problems. By highlighting the achievements of people 60 and older, the Purpose Prize Awards program seeks to "inspire millions of baby boomers to find ways to use their talents to tackle big issues." The awards reflect our changing notions about retirement. As baby boomers move towards retirement, many want to continue in a job - paid or unpaid. Moreover, large numbers of prospective retirees say they would like to find a job that has meaning. where they can help make the world a better place.

Opportunities for Educated Boomers

The decisions made by baby boomers about their Third Age have important implications for the economy, social insurance, and the public good. As a highly educated baby boom generation leaves the work force, both the non-profit and for-profit sectors could face a severe labor shortage. For one thing, the next generation, the so-called generation X, is far smaller than the baby boom generation. There are an estimated 77 million baby boomers and some 46 million generation Xers. Increasingly, organizations are recognizing this succession issue. Nonprofits have the opportunity to attract terrific professional talent, even on a volunteer basis, provided they know how to create interesting jobs with real responsibilities. Companies, for their part, have become more open to phased retirement. A number are developing programs to help them hold onto critical talented boomers. They are providing part-time opportunities for their older workers, hiring retirees as contract employees, and offering them education benefits.

Preparing for the Third Age

It is becoming more common for prospective retirees to begin very intentionally preparing for entry into a new career some time prior to retirement. And frequently they turn to continuing higher education for help. Programs in non-profit management, teaching as a second career, financial management, real estate development, and mini-MBAs are but a few of the programs that attract older workers. Interestingly, the ranks of third-age entrepreneurs are expanding rapidly. According to the Commerce Department, there are three million entrepreneurs who are 55 and over-up one-third from the number in 2000. Many of these third-age entrepreneurs bring substantial business knowledge and technical expertise to a new endeavor-competencies that are very relevant to a start-up enterprise.

For some boomers, the decision to keep working beyond the age at which they are eligible to draw down full Social Security benefits may be an economic one. The age at which a person is entitled to full Social Security benefits has been gradually moving upwards from 65. People are living longer, benefits from many employer-provided pension and health plans have eroded, and a lot of Americans simply have little personal savings put aside for their retirement years.

Fulfillment Later in Life

Our notions about retirement are in transition. Retirement has long been marketed to Americans as a golden age of leisure. Today, however, most boomers say they would like to work after 65. They wish to remain engaged and productive. In a society where a person's identity tends to be closely connected to one's work, many older Americans realize how much they value work. Rather than aspire to a retirement of recreation and leisure, many are looking for fulfillment in later life through pursuit of a new career or by finding a meaningful role in an organization that affords them the opportunity to utilize their experience and talents in support of the public good.