How Boomers Are Redefining Retirement

Q: Last week you responded to an employee contemplating early retirement (“Announce Your Retirement Plans without Becoming a Lame Duck”). I have a somewhat related question but from the employer’s point of view. About two years ago, one of our best employees, age 62, decided to retire. He gave us a nice 10-month-long notice and helped train his replacement. Now he’s been gone a year and wants to come back part-time. Although I’m thrilled to have him because he’s so knowledgeable, I’m unsure about what type of work arrangement to offer and whether he’s in it for the long term or just because he’s bored.

A: This question brings together several trends: our aging workforce, the evolving definition of “retirement”, and how employers will adapt to these changes.

Aging Demographics. Boomers (born 1940-1960) are retiring, but as usual, they aren’t following the rules. Like your employee, some are retiring earlier than expected because a) they can afford it and b) early retirement has been idealized as a time to finally pursue your dreams. Conversely, other boomers are working way past age 65. Why? Some need the money, (only 20% according to a recent study) but most (80%) simply want to stay engaged in the workforce.

“Retirement” Redefined. Many boomers are also finding that retirement is not as great as they expected. This is a generation characterized by their drive, their idealism and their propensity to overwork, and all this leisure has made them restless. So, many boomers are redefining retirement away from the golf course and the beach, and turning toward entrepreneurship, personal development, and a strong second act*. The example of your retiree wanting to work part-time fit’s this new definition.

How Can Employers Like You Adapt?

Rethink the employment relationship. Depending on what he’ll be doing for you –or if you doubt he’s staying around long-term– perhaps an independent contractor relationship may make more sense than traditional employment. This way you could pay by the project, the hour or have him on retainer as needed.

Your company and customers will certainly benefit from having his wisdom again. In fact, I think our economy and our society all benefit by tapping into the collective wisdom of retired boomers. It would be a waste and a shame not to.

*Check out http://www.encore.org/