career Archives – Unretirement Project

Organizations: Consider an Unretirement Employee Benefits Package

June 20, 2018 by Sharlyn Lauby Leave a Comment

I’d like to think that most of us have heard the statistics that people have the ability to live longer than ever. As a result, many employees want to stay in the workforce beyond the traditional retirement age.

But let’s face it, some employees aren’t prepared for retirement. Over the years, organizations have replaced pension plans with the 401(k). Those plans rely on employee contributions. And employees haven’t saved at levels commensurate with the loss of pension plans. So, some of the decision behind employees wanting to stay in the workforce longer is they need to stay in the workforce.

I recently ran across an article in Workforce Magazine titled, “Live to 100? Implications for Work, Employers, and Retirement”. The article goes into some details about why employees aren’t prepared for retirement, but it also suggests that organizations should consider providing resources to help workers transition into retirement.

As recruiting continues to be a challenge, it could make some business sense to create benefits programs for unretirement. Organizations want older workers to stay engaged and continue working. Employees want to contribute and save some additional resources for when they’re fully retired. The question becomes: What are the right benefits to offer? It can’t be things that jeopardize existing government programs. Here are a few things to consider (three of these you’ve probably considered plus one that might be a little ‘out of the box’):

Financial wellness programs: Organizations can make sure that workers are educated about their finances. They can prompt employers about extra savings opportunities under qualified plans and IRAs. Organizations can let employees sign up for automatic enrollment and savings plans. And offer financial counseling for employees approaching retirement.

Flexible scheduling: Employees like time off. Organizations can provide employees with part-time, seasonal, on-call, and contract positions. Older workers can reduce their hours gradually, which allows them to adjust their budgets accordingly. Organizations can use this planned reduced scheduling arrangement to create knowledge management programs and keep valuable historical and technical information.

Learning opportunities: Both employees and employers want this phased retirement strategy to work. Part of making it successful is keeping skills current. Just because an employee transitions to part-time doesn’t mean the company should stop making investments. The goal of this arrangement is for the company to benefit from the employee’s work and the employee to benefit by contributing longer. That happens when employees receive training.

Redesigned traditional benefits programs: There’s no reason that organizations can’t offer some sort of benefits package that is commensurate with the reduced hours that the employee is working. Sometimes we simply assume that only full-time employees are eligible for health care, wellness, disability, etc. Maybe it makes sense to include some of your organization’s unique perks like retail discounts or special services.

I’m hearing an increased number of organizations asking, “We have a lot of workers getting ready to retire. We need them to stay. We don’t have candidates to replace them. How do we do that?” The answer is start creating a benefit package for employees transitioning to unretirement. Talk with them. Find out what they want. This is exactly what organizations do to attract full-time employees.

Part-time positions are just as important as full-time work. It’s time to place some dedicated energy to creating unretirement jobs that can bring value to the organization.

Image captured by Sharlyn Lauby on the streets of San Francisco, CA

5 Unretirement Skills That Everyone Needs

June 6, 2018 by Sharlyn Lauby Leave a Comment

I was reading an article in Workforce Magazine titled, “Meeting the New Faces Who are Shaping Employee Retirement”. It’s an interesting read you might want to check out. My takeaway from the article is that employees thinking about a phased retirement strategy need to start thinking about the skills that they will need to make this transition. So, I decided to come up with a list.

This list isn’t just for individuals. Organizations looking to build a phased retirement strategy and encourage employees to transition from full-time to part-time could use this list to develop a training program that will help employees get those skills.

Financial wellness: Let’s face it, money is a consideration when we’re talking about any employee transitioning from full-time to part-time. Budgeting is an important skill. In addition, there are opportunities to educate workers on retirement programs, government programs, and the timing of benefits so employees maximize their earning potential.

Time management: One of the reasons that organizations are becoming more open to phased retirement strategies is because they need employees. Which means they need productive workers. Employees need to be prepared to be productive in a part-time status. That involves managing your time well. If employees haven’t had to worry about deadlines and project plans for a while, it might be time to get some training in that area.

Wellness and well-being: Another moment of reality we must face is that as we get older, we must think about our health. Possibly more than we did when we were younger. Both organizations and individuals should think about the opportunities available to educate about being proactive with our health – exercise, nutrition, mindfulness, etc. We will be able to work longer if we’re physically and mentally capable.

Technology: You knew technology would be on the list. But I’m not talking about “how to learn Facebook” type of technology, although that’s important. Employees considering phased retirement could be asked (or make the request) to do remote work. This means employees need to know about computer security, basic troubleshooting, logging into networks, etc.

Mentoring: Employees need to be realistic and realize that at some point they won’t be working anymore. And that the organization would like for your knowledge to be passed along to another worker. One way to do that is through a mentoring relationship. But being a good mentor takes some skills – good communication, patience, etc. It would be a win for everyone to teach employees how to be good mentors.

Phased retirement strategies – whether they’re initiated by the organization or the individual – need preparation. They will be successful because employees are prepared for the reduced income, schedule change, new responsibilities, and more. Learning and development programs can help employees get ready.

Image captured by Sharlyn Lauby in Las Vegas, NV

Retirement: Should We Focus on Age or Finances

May 30, 2018 by Sharlyn Lauby 2 Comments

I ran across a very interesting CareerBuilder survey recently which indicated that 53 percent of workers age 60+ are postponing retirement. Four in 10 workers (40%) said they don’t anticipate retiring until age 70 or older.

At first glance, I thought this could be very good news. Employees might feel engaged in their work and feel no need to retire. Organizations could be thrilled that workers with skills and knowledge are staying in the workforce and they aren’t facing labor shortages. Unfortunately, that wasn’t the reason that CareerBuilder cited in their survey.

The survey said that workers were postponing retirement because they were unsure about how much money they needed to retire. When asked how much money workers think they’ll need to save in order to retire, they said:

Honestly, I wasn’t very surprised by these numbers. According to the latest findings from the Federal Reserve, nearly half of Americans don’t have enough cash on hand to cover a $400 emergency. If that information is true, then it’s not surprising that people don’t know how much money they need to retire.

Even if we’re relying on Social Security (and many of us are), it’s important to start working on our financial plan for retirement. The CareerBuilder survey said that only 1 in 4 workers contribute to a 401(k) or retirement type plan. Again, how will we know what it takes to retire if we aren’t saving?

It also raises the question; how will we know when we are ready to retire? Is it when we turn a certain age OR when we have the money? More importantly, what will we do if the answer isn’t in our control. For example, what if our physical health requires us to “retire” before we have our financial plan in place?

I’m not sure that I have all the answers. But I do know these are questions that we have to start asking ourselves. How will we know when we’re ready to retire? What’s the measurement? And once you determine that, do you have a plan in place to get there?

Image captured by Sharlyn Lauby in the Wynwood District of Miami, FL

More Individuals Are Choosing Freelancing in Semi-Retirement

May 23, 2018 by Sharlyn Lauby 3 Comments

I ran across an article recently on LinkedIn talking about the latest statistics for the gig economy. It’s worth checking out. My takeaway from the article is that an increasing number of Baby Boomers in senior level roles are opting into freelancing or consulting as a transition to their semi-retirement.

Think about it. Instead of going from a regular full-time job to retirement, individuals are making several smaller moves toward retirement. Full-time job TO full-time freelancer TO semi-retirement THEN unretirement AND retirement.

The good news is that I believe organizations are very open to this type of new career transition plan. Granted, it’s very different from what they’ve done in the past. And, it will probably involve some sort of trial and error in terms of getting the conversations right with employees and coordination in making it happen. Nonetheless, I think with the challenges that companies are having in finding and keeping talent, it makes a lot of sense.

But for individuals looking at the next decade of their careers, it means they need to think differently too. It’s a big enough decision going from full-time to retired. Now, we’re talking about several small moves, all of which need some level of planning.

We should start thinking about career transitions earlier. You can’t just flip a switch and become a freelancer or consultant. It’s true that you would have the knowledge and skills to do the work. And it’s pretty easy to set up a home office. The part of freelancing and consulting that takes time is building a network. So, if consulting is in your future, you must start building the marketing plan.

Lifelong learning has never been more important. When you become a freelancer or consultant, you are in charge of everything. If you’re used to calling the technology department every time your computer goes on the fritz or having someone proofread all of your communications, those things go away when you leave Corporate America. Sure – you can hire someone to help you but that can get pricey.

It will be necessary to financially plan for these transitions as well. Freelancing can be terrific in terms of having time to travel, pursuing a hobby, or spending time with family. On the other hand, freelancing means you’re responsible for all of your income, including benefits like healthcare and vacation. So, moving to a lifestyle where you have more control also means you’ll want to make sure you can afford it.

One of the ways that individuals can transition toward their retirement lifestyle is by spending some time as a freelancer or consultant. Organizations seem to be very willing to consider these arrangements. But it needs to work for everyone. Companies want individuals with knowledge and skills. Individuals want flexibility and fair compensation.

To make this successful, both companies and individuals will need to start planning earlier and communicating more often.

The Time to Set Retirement Expectations is NOW

May 9, 2018 by Sharlyn Lauby Leave a Comment

There’s a statistic from Pew Research that says 10,000 people a day are turning of retirement age. That doesn’t mean they all leave the workforce at that time, but that they’re eligible for “retirement benefits”. And organizations need to get ready for what’s being termed a “silver tsunami” of older workers leaving the workforce.

This should be a concern to companies. According to the Society for Human Resource Management, 68 percent of employers are having challenges finding qualified talent. Companies need employees to grow and deliver a return-on-investment (ROI) to stakeholders (whether those are internal or external).

Over the last decade, many Baby Boomers lost a piece of their retirement nest egg due to the Great Recession. Many have recouped those losses or learned to live without. At some point, they will decide they need to retire. Meanwhile, organizations cut back on employee benefits and investments (like training) so workers are behind in skills development.

The reason I’m bringing this up is because I believe all of these factors: an aging workforce, the Great Recession, lack of companies making training and development investments, etc. has created a bit of a retirement crisis. Do workers have the resources to retire? Do companies have plans in place to handle the exodus? For a long while, I thought I was the only person thinking about this and then I received my latest issue of Workforce Magazine. The entire issue was dedicated to the retirement challenge.

Yes, an HR magazine totally focused on retirement. One of the articles that caught my eye was “Remodeling Retirement for the 21^stCentury”.

This tells me that companies have a lot of work to do. If they want to keep older workers around longer, they need to become more supportive. Companies need to make training and development a priority, so workers feel they can successfully do the job (and don’t feel like they’re being left behind). They need to set expectations about what (if anything) they will do as an employer to support the transition from full-time to retirement.

Employees also have an obligation. They need to be open to change, including learning new skills to stay relevant in the workplace. They need to understand their benefits, so they can properly leverage them. I can’t tell you how many times employees didn’t read or attend benefits meetings and then were upset to learn that their benefits weren’t what they expected. Employees also need to communicate with the company their retirement plans so management can support them.

I can’t deny that over the past few decades an increasing number of employers haven’t thought about retirement. They’ve eliminated retirement benefits and told employees that they’re on their own. Well, it’s time for organizations to refocus. I’m not saying that companies need to go implement the old retirement pension, but they do need to set expectations with employees – of all ages. And they need to keep in mind that older workers might be positioned to give them 5-7 years (or longer!) of fabulous work.

Employees at every age are thinking about their retirement and what’s it going to look like. If people and organizations don’t start setting expectations, everyone will be disappointed.

Image captured by Sharlyn Lauby near Waikiki Beach in Honolulu, HI

Think About Retirement Lifestyle and Programs Separately

May 2, 2018 by Sharlyn Lauby 1 Comment

Just in case you missed it, the World Health Organization (WHO) has declared 65 years of age to still be “young”. Frankly, it’s not a surprise. People are living longer.

But it also reminded me that we have to draw a distinction between retirement age for government or company retirement programs and our age for living a retirement lifestyle. As an HR professional, I understand the need for retirement plans to have ages in them. Organizations need that for compliance, consistency, etc. But just because a person qualifies for a retirement benefit at age 65 doesn’t mean they can no longer contribute in the workplace.

This is one of the reasons that the concept of unretirement is so important. Yes, we need to work toward have the security to support ourselves and we need to be conscious of how retirement programs work. But we also need to realize that hitting the age of eligibility for retirement programs should be viewed as a benchmark, not a finality.

Unless of course, you want it to be some sort of “I’m XX years old and now I’m going to retire.” And there’s nothing wrong with that. In fact, you can decide that you want to start living the retirement lifestyle when you’re 55 or 50 or even younger. It does mean that you might have to wait a few years before you reach the eligibility age for retirement programs, but that can be okay if you plan and prepare for it.

If you’re going to think of retirement plans and lifestyle as two separate things, here are a few things to keep in mind.

It’s never too soon to start thinking about what you want your retirement lifestyle to look like. Sure, this makes sense in terms of your finances, and those things you want to do (like travel, hobbies, etc.) Buthave you given any thought to an encore career and the skills you might need to start working on now?

Share your plans with family and friends. You don’t need to do this all at the same time but, at some point, you have to tell your family what you’d like to do (and when). They need to buy into this. Especially if they thought your retirement meant you were going to spend more time with them.

Think about how to introduce the subject with your employer. Another conversation you don’t have to have right away, but it does need to happen, is talking with your boss. Your company might be thinking you plan on hanging around longer (or leaving sooner). Open, honest dialogue is necessary for a smooth transition.

As I start to talk with more business professionals about this blog, I’m a little surprised at both the Millennials who are already thinking about their retirement future AND the Boomers who aren’t. While you don’t have to take action right away, it does take some time to develop an opinion on these matters. We all have to develop our own unretirement plan because nobody can do it for us.

Image captured by Sharlyn Lauby somewhere on 7-Mile Bridge heading to Key West, FL

Phased Retirement: Be Prepared to Initiate the Conversation

April 25, 2018 by Sharlyn Lauby 1 Comment

I ran across an interesting article recently in Workforce Magazine titled, “Phased Retirement Largely Ignored Despite Flood of Retirees”. The title says it all. Organizations don’t have structured phased retirement programs in place. Frankly, a lot of organizations don’t have structured retirement programs.

But I don’t believe this trend of not having phased retirement programs is going to continue. And I don’t feel that employees have to wait around for such retirement programs to get created. Some of the work may actually happen organically.

Organizations continue to struggle finding qualified talent. The job market has shifted in the candidate’s favor. For individuals looking to stay in the workforce longer, those opportunities exist. According to an article from the Society for Human Resource Management (SHRM), the number of employed older Americans has increased by 35 percent over the past decade. This is due in part to increased longevity, which means that people need to finance a longer retirement.

So individuals and organizations have the opportunity to create a win-win where work, phased retirement, and retirement are concerned. Older employees can stay in the workforce longer to build up additional resources for their retirement.

Then, organizations and employees can work together to create an interim step (aka phased retirement). But here’s where I think the challenge lies. I’m not sure phased retirement programs have a lot of history or established best practices. As we learned from my interview with Joyce Maroney from The Workforce Institute at Kronos, phased retirement isn’t simply “going part-time”. It involves communication, planning, and training.

Both employees and organizations need to be willing to initiate the conversation about phased retirement. They need to be open to the notion of doing a trial run or beta arrangement. And then, they have to debrief their experiences to make the next time better.

Yes, phased retirement is exciting and fun. It’s also a business decision. And as employees, we should be prepared to wear both hats. There must be a balance between “I’m looking forward to working less and relaxing more.” AND “I need to have a role that brings value, even if it is part-time.” I absolutely believe it can be done. And we have the skills to make it happen. We just have to be prepared to start the unretirement talk.

Speaking of skills, if you happen to work for one of those companies that might be looking to create a few phased retirement test cases, please note a couple of paragraphs earlier when I talked about what individuals and organizations need to do: initiate conversations, openness to a trial, and debrief experience. What I’m getting at is that being a part of a phased retirement program involves good communication and feedback. Don’t expect the other person or someone else to do all the talking.

Phased retirement programs benefit both employees and employers. IMHO, organizations would be well-served to implement a few test cases before adopting a formal phased retirement program. But that means managers and employees need to be willing to communicate their plans and goals, share positive and negative feedback, and remain committed to doing what’s right for everyone involved.

Image captured by Sharlyn Lauby somewhere off the coast of Miami, FL