Dilemmas Follow Wage Earners into Their Middle Years
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The more I read about our “senior” years, the more I wonder if we will ever solve the many dilemmas that this time of life presents to us.
On April 13, the Denver Post reprinted a New York Times article, “Boomers face wrinkle when seeking jobs.” The first vignette was of a 25-year IBM human resource executive, age 57, who had been out of work for almost a year and a half. He had applied for a job in Texas and was waiting for his interview. It turned out that his interviewer was several decades younger than he was. She gave him a full 10 minutes and then said that she did not believe the job was “suitable” for him.
The data from the U.S. Bureau of Labor Statistics tell us that workers over 45, who are many years from traditional retirement, make up a disproportionate segment of the long-term unemployed in this recession. They have been out of work for 22.2 weeks compared to 16.2 weeks for younger workers. While older workers’ experience is still valued by many employers, this advantage is deteriorating. “Once older workers lose their jobs, then it’s horrible,” stated Alicia Munnell, director of the Center for Retirement Research at Boston College. “But discrimination in hiring is almost impossible to prove.”
Ironically, on the same day the Post’s article appeared, I saw an article in BusinessWeek magazine by Amy Feldman, titled “The Senior Senior Years.” It begins, “The financial crisis has put front and center people’s fears of running out of money in retirement.” There are even new insurance products known as “longevity insurance,” which one buys at age 65 and has a starting payout at age 85!
In an illustration titled “Financing Retirement” included in the article, an assumption is made that the person’s preretirement income is $200,000 and that his estimated annual retirement income is $160,000. The required monthly income is stated as $13,000, and the ballpark savings is estimated at $1.5 million! How many people do you know who have such high incomes, extravagant living requirements, and such substantial savings? Very few, I’d guess. And if you do know anyone in these circumstances, I’d bet that they are male, not female. Perhaps this illustration speaks to the “average” BusinessWeek reader. I even doubt that. It certainly does not deal with the average American.
