Here’s an excellent article about the need to postpone retirement in today’s economic and social climate. Many 60+ workers are finding their savings have shrunk along with their property values. The goal of “sell this house, buy a small apartment and enjoy the difference” has morphed to, “Hope we can sell this house someday.”

Frankly, I think working makes a lot of sense even if you can afford to retire. I tried slowing down myself when I was living in New Mexico. I realized I needed more stimulation. I also like the edge that comes with getting paid for what I do. Volunteer work has become as competitive as paid work. For some it’s satisfying. For me it’s second best.

Even more, I met lots of retirees in New Mexico. Some had started new businesses; one couple fulfilled a lifelong dream of running a restaurant. But some were just plain bored.

One of my neighbors had been a distinguished scientist in a former life. He had published papers, run labs, supervised doctoral students and enjoyed international acclaim. Retiring, he decided to live alone in a remote part of the state.

At first things went well. He got involved with building his house. He huddled with an architect and then a contractor. The house was magnificent.

But then he didn’t have much to do. He didn’t want to write a “real” book and go on tour. He didn’t want to consult. So he puttered. And he drove the neighbors crazy. I still remember getting a cal one day: “Cathy, I noticed a plumbing truck outside your house. What were they doing?”

Frankly I didn’t remember the plumbing truck. I had to stop and think: “Just what were they doing?”

That guy was bored.

Sure, he could have done volunteer work. I don’t think he was passionate about literacy or conservation or any of those other things. He loved his dog. But compared to his talents and energy, he didn’t have enough to do.

I sometimes wonder what would happen if I didn’t work. I would take my pottery classes. In fact, the pottery studio’s open hours are filled with senior citizens whose creations are magnificent. Would I get better if I potted every day or even a few times a week? I would take more improv classes and writing classes.

But then I’d start to think, “Can I sell my creations? Probably not. Can I get paid for using these skills? Not likely.”

I might go back to school to study something I find fascinating. But then I’d want to publish papers and that means … a new career. And I’d want to get financial rewards.

For me, these creative pursuits are like icing on the cake. Icing is great but without the cake it’s too sticky and sweet. I like the focused energy of working – and the rewards.

What about you? What do you think about retirement?

Today’s New York Times includes an article on career change to retirement. You can read the full article here.

Here are the article’s suggestions (with my comments):

(1) Talk to a financial planner and see if you can afford to retire.

Frankly, I don’t think it’s easy to plan. Your planner can make projections but can’t account for individual lifestyles.

I have a friend who’s pushing 70, living on $24,000 a year in Philadelphia. She’s single with no family support – not even holiday gifts. She lives in a third floor walkup, mainly because she wants a particular part of town and she has a reliable landlord. Her tastes are simple, but she doesn’t need a car. The city is filled with low-cost and no-cost entertainment. She budgets for meals out and takes taxis more than I do! She volunteers for arts organizations and she’s always busy.

However, I know many people will be totally turned off by my friend’s example. It probably won’t be applicable if you have children and grandchildren. More important, my friend didn’t have a successful executive career up till her retirement. Like many women of her generation, she had trouble using her education and admin skills to create a meaningful career.

I have other friends with a million or more in savings but claim they can’t afford to retire.

(2) Your health could go at any time.

True, but you can take some preventive steps with exercise and diet. I’d say it’s more important to have a health philosophy. What’s important to you?

(3) The biggest retirement challenge isn’t money – it’s mind.

The Times article says:

Traditional retirement may lead to a lack of intellectual engagement, which is crucial for good health, says Gary J. Kennedy, director of geriatric psychiatry at Montefiore Medical Center in New York.

That is SO true. I have met numerous retirees whose brains turned to mush after retirement. It was painful to watch. One wealthy man devoted his energies to building his dream house, working with an architect and construction company. While the house went up he was fully engaged. But then he had nothing to do. He began driving the neighbors bonkers because he’d go visiting and talk on and on about things nobody cared about.

Some people (like my low-income friend) stay alert and engaged through volunteer work. But for many others, volunteer work just doesn’t have the edge.

(4) If you want to stay with your company in a lesser role, start negotiating.

I would add, “Be prepared to be undervalued and overworked.” I don’t recommend this option, except as a way to keep an income going while you plan for something else. You will rarely be taken as seriously as those with full-time jobs. You’ll always be described as “Jim who used to be head of sales…” or “Sally our former marketing director.” You might consider starting your own consulting company (even if you just get a business license and a one-page web site). Let your company know you might be available. If they nibble, it’s on their initiative.

(5) Start saving for a transition to a new career.

From the article:
“Mr. Freedman [Marc Freedman, author of The Big Shift] recommends that you prepare for this later-life transition by saving money while in your 50s for things like additional education or unpaid apprenticeships and internships. “Reinvention sounds very romantic, but it’s also hard,” he says. “So it helps to prepare as much as you can.”

That’s excellent advice. I would support other recommendations, such as assembling your own Board of Advisors. I would recommend talking to many people, not just one or two.

I’m also leery of recommendations for a downsized career. The article refers to a retiree who was also a lover of wood working. He took a job at Home Depot, which he presumably enjoyed. My experience has been different, with myself and my own clients. Moving to a lower-level, lower-stress job can actually backfire.

For more support see

http://www.MidLifeCareerStrategy.com/services.html

Relocation is one of the greatest stressors that most people experience in the twenty-first century. Often people move specifically to reduce expenses, especially in difficult economic times.

However, as a career consultant, I urge my clients to be very suspicious of cost of living reduction promises. Many people decide
to scale back their expenses by moving to a small town with lower
housing costs. However, there is usually a reason for the lower cost of
living.

“Bob” thought he could establish
his career as a freelance writer by moving to a state with a lower cost
of living. However, his new city did not have a strong public library
and the nearest large bookstore was 100 miles away. He would spend time
and money driving and invest considerable sums in creating his own
private library.

“Christine”  planned to retire in a charming mountain town. She found she had to drive 200 miles or more to get medical services, such as appointments with a contact lens specialist who could get her prescription right the first time. She realized if she had serious problems requiring a specialist, she  would have to get someone to drive her to a big city hospital or hire an ambulance. Some rural towns don’t even have medical services; residents have to be flown to a facility by air ambulance when they have heart attacks.

These challenges may not bother you at all. Many people live happily in these towns. But do your homework first.

Learn more about relocation at http://www.RelocationStrategy.com

Roland approaches retirement with what a healthy nest egg: three houses, a seven-figure retirement account, and a pension that covers most monthly expenses.

Rosabelle just sold her retail business, after two years of coming to realize that, “This is not where I want to be.” A combination of increased competition and her own disinterest lowered the sale price and she faces bankruptcy. She owns nothing except a used car, a few clothes and some odd bits of books and furniture.

Roland rarely talks about his future. He talks about saving fifty dollars a year on his car insurance by spending 8 hours listening to a “safe driving over 60” class. He spends hours negotiating with a real estate agent to save a few hundred dollars when he sells a house he inherited. He wonders if he will run out of money in his lifetime.

Rosabelle reminds everyone she will be free to do whatever she wants once the business is gone. She might get a scholarship to study in a natural healing program or take a few months to explore her options. She wouldn’t mind a job in just the right place. She knows she will bounce back.

Rosabelle smiles when she talks about her relationship with her current significant other. She doesn’t know where it’s going but she’s enjoying the ride. Roland’s friends have begun to avoid him: they don’t want another dose of financial doom-and-gloom.

Most of us fall somewhere between Rosabelle and Roland. We’re not ready to be as free as Rosabelle and we tell ourselves we wouldn’t fret if we had Roland’s money. We can all be owned by fear, no matter how much money we have. And there’s no way to buy the gift of waking up with a feeling of anticipation: “Another day to do what I want!”

Today’s WSJ includes a retirement living section. It seems that some of the over-60 set can’t handle all that leisure and they need help figuring out what to do.

One woman sought help from a career counselor who administered the Strong Interest Inventory and the notorious Myers-Briggs. The WSJ article included helpful tips on taking the test: you can pay $100-$300 to work with a counselor and discuss results.

The article failed to note that Myers-Briggs has been largely discredited (despite widespread use). You might as well check in with a good astrologer.

Frankly, I can’t believe so many organizations (including universities) continue to use Myers-Briggs. See

http://www.skepdic.com/myersb.html

Responding to some of this criticism, a person associated with a university says, ‘It is perception-based and is therefore subject to threats to validity…”

http://world.std.com/~lo/95.07/0081.html

The Strong Interest Inventory may be a better test…but I remain skeptical. Before paying anybody to take tests, I would invest in a copy of Annie Paul’s excellent book, The Cult of Personality.

A while back I wrote an article about how people really change careers. Read it here.

Marc Freedman’s book, Encore: Finding Work That Matters In The Second Half of Life targets baby boomers who want second careers that “matter,” i.e, that make a difference. These days, as people live longer, retirement no longer makes sense.

The “encore” title creates an appealing metaphor – the idea that we’ve finished the plan performance and yet are not ready to leave the stage. At first I thought, “Wow – I wish I had come up with that title for some of my own work.”

But think about it. Performers give encores to please the audience. Encores are gratuitous extras – we love getting them but we don’t feel cheated if the performers simply pack up and go home. Symphony orchestras typically choose crowd-pleasing pieces that send everyone home with a smile.

I love encores myself. But performers know they’ve got another “real” show tomorrow and the day after that. To think that you’re nothing but an encore for the rest of your life…an extra, a crowd-pleaser, but with no real show tomorrow?

Books like this one are actually dangerous because prospective employers think, “Oh, they’re older boomers. They don’t care about rewards and promotions. They’re not forward-looking.”

For his Encore, one former teacher put away his graduate degrees and decided to be a greeter at Wal-Mart. Is that a career that “matters,” as the subtitle promises?

Thanks but no thanks.

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