Boomers' desire to stay on the payroll bolstered by economic downturn

By KEITH ARNOLD (Daily Reporter Staff Writer)

03/26/2009

With the vast majority of Baby Boomers having taken a hit on their 401(k)s resulting from the current world economic crisis, the concept of 50 and 60 year olds remaining in the workforce a few extra years or coming out of retirement altogether is not so foreign an idea.

According to the results of a recent survey sponsored by the investment firm ING Direct and published in The Christian Science Monitor, four in 10 Americans believe the current economic climate will force them to retire as many as 10 years later than originally expected or not at all.

The survey, titled the "Road to Retirement is Turning into a Road to Nowhere," found that Americans will be chained to their jobs longer than ever before just to keep up with their bills and ensure food is on the table. 

The survey results also noted that more than 60 percent of all Americans are significantly more concerned about saving enough money for retirement and having the right type of retirement plan than they were six months ago. 

"The current economic roller coaster is making people queasy about retirement," said ING Direct USA President Arkadi Kuhlmann in a press release. "As a result, more people think the bright lights of their golden years are fading further into the sunset. ..." 

This may not be such a bad thing, according to AARP's David Goldstein. 

Citing a recent Time Magazine article, he wrote that as a result of millions of Americans having spent their careers preparing for retirement, there are benefits to remaining in the workforce a bit longer. 

"The country could see a big boost in the size of the economy if Boomers were to stay at their jobs for a few more years," Goldstein continued. "Moreover, the extra years of work could lessen the impact of the looming labor shortage resulting from retiring Boomers. 

"On a more individual level, as many as two thirds of older Boomers aren't fully prepared for retirement. Working longer could help these people properly prepare for an enjoyable and secure retirement." 

Here in Central Ohio, Employment for Seniors Inc. Executive Director Carol Ventresca said the non-profit organization has experienced a high level of interest and matching traffic for a long time. 

She recognized, however, the issues driving interest have changed over time. 

"When the organization first started it was for seniors with time on their hands, who wanted to stay active, and working in a new capacity was interesting to them," Ventresca said. "The other group was interested in adding supplemental income to their (already) fixed income. 

"What's changed over time, is there are many more people not needing supplemental income, but (a primary) income. The financial need is much greater than it was 30 years ago." 

And spread throughout a larger audience, the financial need is even greater. 

Ventresca, who was appointed to the post earlier this month, said the phones have not stopped ringing during the past six months. 

"We're scheduling appointments two weeks out," she said. "And the big difference now is we don't have as many jobs." 

As a result, finding more employers to utilize the service and securing more jobs for participating employees is Ventresca's No. 1 priority. To do so requires employers to recognize the organization as what she characterizes as a jewel. 

A senior job fair Sept. 11 at DeVry University is the organization's next high-profile event. 

Central Ohio residents, 50 years of age or older, may contact Employment for Seniors at 614-863-1219 to schedule a registration and counseling appointment. Office hours at the organization's 4500 E. Broad St. home in Whitehall are 9 a.m. to 1 p.m., Monday through Friday. 

Employers may contact the office or the Web site at www.employseniors.org for information on posting positions and obtaining qualified applicants for their staffing needs, Ventresca said. 

Still, other older workers are seeking federal jobs, which offer job security, health and life insurance, a federal retirement program, paid vacations and leave and other benefits, The Associated Press has reported. 

When the national job market began tightening in the first quarter of last year, FedJobs.com, a business that has been helping federal job hunters since 1974, started hearing from 50- to 65-year-olds instead of 25- to 40-year-olds, the report indicated. 

"All of a sudden, it's a much older clientele calling up saying they're interested in government work because they lost their jobs, their companies merged, their companies went bankrupt and they're looking for stability," said Ross Harris, sales and marketing director for the site. "The perception is that federal work is more stable - that there aren't as many layoffs."