Millions of baby boomers retired early during the pandemic

[applegrove]

Millions of baby boomers retired early during the pandemic

Erica Pandey, author of What's Next

https://www.axios.com/millions-of-baby-boomers-retired-early-during-the-pandemic-4aead44b-9ef5-4510-8f1c-6fb3cc7faebd.html

"SNIP....

The pandemic pushed more than 3 million baby boomers into premature retirement, according to a new analysis from Miguel Faria e Castro, a senior economist at the St. Louis Fed.

Why it matters: The wave of early retirements is contributing to the labor shortage that's roiling the U.S. economy.

What's happening: Many older workers faced layoffs, and others left the workforce to protect themselves from the risk of infection.

It's much harder for workers in their 50s and 60s — or older — to re-enter the workforce after a period of unemployment, due to persistent ageism in corporate America.So it's likely that many of those who left jobs got discouraged and chose to retire instead.

......SNIP"

[applegrove]

1. It is simply an employees market.

[brooklynite]

2. Define "premature"

I could have worked another 10 years or so at my job, but was fully vested in my pension program at 62.

[Midnight Writer]

10. I retired the very first day I was vested in my pension.

I didn't hate my job, but it was a job. There was not a day I spent there that I would not have rather been doing something else.

The only thing that kept me going in day after day was the prospect of retiring.

I don't have much money, but I've never been happier in my life.

[UCmeNdc]

21. K&R

Agree 100%. I love being retired.

[ProfessorGAC]

30. Similar Here

I was fully invested 2 years prior, and I liked my gig, but got tired of travel and I did it for 43 years because I got my BS at 19.
43 years was enough and I have zero second thoughts.

[Cracklin Charlie]

3. I'm one of them.

And loving it!

[marybourg]

4. My son, just a little too young, by months, to be a

boomer, is already 57. So I don’t think “premature” is the appropriate term. At all. My boomer sister is 74.

[OldBaldy1701E]

11. I am 57 and I am always called a 'boomer'.

Supposedly, 1964 was the last year of the boomer range, according to the various charts I have seen. But, seeing as how I never went beyond 'fizzle', I can see your position as well.

[cannabis_flower]

22. I know I'm considered a boomer but...

I’ve never really considered myself a boomer. I’m 62 and was born at the end of 1958. Probably because I was the oldest child in my family, I’ve usually associated with people younger than me. My husband was born in 1965.

[area51]

43. Fellow

Generation Jones here.

[cannabis_flower]

47. Ding ding

I’d never heard that term before but that’s exactly what we are. Everything in that list fits my experience. Thank you for helping me find the name for my generation.

[marybourg]

28. Yes, it works in my family. My cousin, the latter-in-life son

of my wwII veteran uncle was born at the end of ‘63. He is truly a boomer. My son, born 9 months later in ‘64 is the early-in-life child of, not a veteran, but someone born months after Pearl Harbor. He is not a boomer.

We had it under control then, but people have gotten sloppy about it now, so many years later.

[localroger]

35. Class of '64 represent

Born in 1964 here too. I've seen the charts that call me a boomer but I've never felt like one. I don't remember any of the critical historic events that shaped the boomer generation, and by the time I came along a lot of the realities of boomer life, like intense competition to get into a good school, were loosening because the population of young people was shrinking as the boomers passed their prime chilbearing years. As in many things I don't think there is a clean transition between generations; I'm not really a boomer but I'm also definitely not gen-X. I guess I'm just a local Roger.

[Deep State Witch]

38. November 1964

Thanks to working for the Federal Government, I was eligible to retire at 56 with 30 years of service. (I had 34.) I turned 56 in November of last year, and retired December 31st. I don't miss it one bit. Well, maybe a little. But, I keep in touch with the people that I want to keep in touch with.

[Nictuku]

5. I was forced into early retirement

I wanted to work for another 2 years, when I would get Social Security along with my pension. I had worked where I did for 21 years! My entire unit was targeted, all of us had 15-25 years working there. We were at the top of the salary chain, and that is why I think they targeted us. We all took the early buyout because they had re-written our job descriptions (40 years IT Tech support relegated to taking minutes of committee meetings). It was an insult, and they new it would be. They did a 'research panel' and interviewed all the staff, who all gave glowing reviews of the IT support they received from us. But it all comes down to the budget, and they cut us out. Over 100 years of experience between us. Now, I can only laugh (better than crying). The people they hired to replace us don't know what they are doing.

Me, on the other hand, at first I was going to try to look for more work. But try getting a job when you are 60. It is depressing. Overwhelming. But I think I found a solution. I still have to wait until I'm 62, but if I get a reverse mortgage on my house, I think I'll be able to manage my bills with my pension and SS. Until then, I can draw against my 401(k) (which I really hate doing, but no other choice right now). Reverse mortgage works for me, I have no kids or heirs. I will be able to live in my house, I still have 20 years to pay on the mortgage (which is how much I get from my pension, just enough for the mortgage not all the other bills). But a reverse mortgage will make the mortgage payments go away, I can still live in my house. I think it will be a win win. I have to do some more research on it.

Stress over finances is the only reason I am not actually enjoying not working for the first time in 45 years.

[in2herbs]

12. I know that a reverse mortgage is a financial lifeline for a lot of folks but I caution you to read

the fine print. I have read some of these mortgage contracts and they allow the lender to "foreclose" if you are vacant from your house for 90 days or more, and I'm not talking about vacationing. Say, for example, you were injured in a car accident which required a long hospital stay, several surgeries and months of rehab -- all away from your home --- you run the risk of not having a home to go back to when you are well.

I have a friend who has about 8 years left on her reverse mortgage. She has no way to pay out the reverse mortgage lender's equity and regain full title to her home when the contract is up. She has no idea what she will do. Luckily she has family.

If you don't understand the fine print you might consider paying for an hour's worth of legal advice.

[FoxNewsSucks]

16. THat's definitely a good idea.

I have kept reverse mortgages in mind for the future also, and didn't know that about being gone from your house.

Also, the ads imply that you can stay in your house no matter how long you live. If I ever do it, I'll not be taking their word for anything.


Thanks!

[marybourg]

29. Aren't you required to have, and the lender required to supply

counseling?

[onethatcares]

17. remember

that with that reverse mortgage you're still liable for taxes, maintenance, repairs, and the rest of the home owning experience no matter what Joe Namath says, or whoever that guy on teevee is.

why not find a person to partner up with? There has to be other copacetic folks you've met through the years.

[JonAndKatePlusABird]

44. Tom Selleck!

In his most recent ad, he’s ticked off at us for being skeptical.

[onethatcares]

46. joe namath, tom sellick

ronald reagan, betty devos, et al, They all start to look the same to me and their words sound like horseshit hitting the trail on a wet day.

[KT2000]

6. I see this where I live

I live in a community that has a high retired population. The pandemic hit and the real estate market exploded. It is still that way. People moving from all over the country to this place. The disconnect comes when these people need a house built and repairs and remodeling to their new homes.

The craft and services industry cannot keep up with the demand. Recruiting to the area is made more difficult by the fact that the booming real estate market has priced working people out of home buying and renting. (some of the real estate boom has come from cash offers from investors who leave the homes empty).

The retirees have also taken with them the institutional knowledge of their workplace to be replaced by younger people who are starting new, with more modern work ethics. They are different.

And what about the population that was supposed to replace the boomers? How many are unemployable due to mental illness and drug/alcohol addiction. How many people have we lost.

The pandemic has accelerated what would have been a gradual change.

[choie]

7. Premature...

meaning if they filed for social security early between 62-64, they receive a significantly lower benefit than if they retired at 65 or 66 (or 70).And not everybody receives social security AND a pension. Thus financially, it's going to be tough going unless they work part-time while receiving SS.

[mbusby]

13. The SS goes up later...

...because you will kick the bucket sooner.

[ProfessorGAC]

36. Taking SS Early...

...puts a restriction on income.
Not sure what I will be in '22, but when I started taking SS at age 62 ( that was January 2019), the earned income cap was $18,000. I actually got tagged by SSA because my bonus & the 30 day vacation payout were paid in '19 but earned in '18. Those 2 things added up to nearly 40 grand, so they wanted $1 back for every $2 above the cap. They wanted to deduct from my payments until I paid back nearly $11,000.
So, part time work when taking SS early means PART TIME! That degree of penalty shows they mean business!
Now, all other retirement income doesn't matter. Pension, retirement savings (IRA rollover for 401-A &K plans) aren't counted. Just income earned from actively working.
I substitute teach, especially in the winter. For that piddly daily pay, there's no way I'm hitting $18k.
Plus, it goes up year by year. Not sure what it will be for 2022, but its $18,960 this year.
My full retirement age is 67, so I have nearly 3 years before I wouldn't be capped.

[doublethink]

41. Me almost to a 'T' ... kinda ... ha ...

Born in 1958 ... reitired in 2003 with a lot of $ in the bank at 45 years old. Went back to work full time at 55 years old, went part time after 7 years. Been Part time 2 days a week for the last 2 years. Am 63 now and going on my second year of collecting Social Security and working part time ... montering the $18,960 this years employment ... My job gives me a lot of time off at the end of the year which keeps me in range of not going over. I did a bit last year and a bit more this year but it is acceptable. I get exersize at work 2 days a week and really have no problem there Wed and Thursdays. But I would hate to be in the job market looking for any kind of job at 63 years old now-a-days. This is definitely my last job working for the man. I'm good, should pay off the house within 2 years unless I go blow some of my cash on a C5 2003 Corvette next year ... ha ... counting my blessings and somehow just lucked out after all I tried to mess things up in life right. Peace.

[ProfessorGAC]

42. That's Why Subbing Works So Well

Keeps me busy, it's useful & needed, and I can try to help drum up enthusiasm for math & sciences based upon everything I did for a career.
It's not really an income supplement, as I donate 40% of pretax pay to a couple food banks. If I get $120, I pay $12 in payroll taxes, $37 in state & fed income taxes, $10 to IMRF. $45-50 to the food bank.
So, I only net around $60. I'm basically taking gas money. If I sub 3 days in a winter week I make under $40.
I'm not doing it for the money. I have SS, a pension & a couple million in an IRA. Plus, my wife's SS & tiny pension.
If we needed to supplement our income, we'd be doing something wrong.

[Bayard]

8. That would be Mr. Bayard and I

Last year, both 63. My business was drying up. His new job was sending him all over the place in the pandemic (one of the guys he was working with got Covid), and then gave him a bunch of crap for taking time off when both his parents died at the same time. It didn't look like we'd get much more if we stuck it out to 65.

The main thing was that his parents left us some money, or we'd be having a tough time making it.

[Stinky The Clown]

9. I'm a boomer long past retirement age. No plans to retire any time soon.

Most people guess my age as 15 or more years younger than I am. I truly love what I do. Why would I stop?

[monkeyman1]

14. good for you !

I was a high steel climber & damn leg's pooped out at 57 yrs old ! hang in there !

[Stinky The Clown]

32. I get that!! I have a brother in law who was also a high steel climber

He had to quit younger than you. He's on disability.





Oh . . . . and he's a Trumper.

[monkeyman1]

33. not this guy !

[OldBaldy1701E]

24. You are definitely one of the lucky ones, Great Clown! (n/t)

[getagrip_already]

15. I just found another job after months searching...

I have current skills and a solid background. I can get security clearances.

It took months. I got very few calls even though I applied to dozens if not hundreds of jobs.

I'm 63.

You are never going to convince me that my age had no effect in the job market. It is very easy for recruiters to establish your age or really any other demographic.

My skills and experience are very much in high demand. My age is not.

[hamsterjill]

39. Same story here.

I’m 62 and looked for 15 months before I was finally hired again after being laid off right when COVID started. Age is definitely a factor.

[bucolic_frolic]

18. It is still a variegated market

30-90k retail workers are dead from the pandemic. Mid-level specialized jobs are plentiful but many lack the skills. The good jobs are in populated areas, rural areas never change much. Coporate America has earned their current labor problems. Their HR are tethered by legal teams whose sole focus is liability. A lot of workers left? I wonder why.

How many new workers are not quite qualified? And what will that do to productivity, and what problems will it create for all involved?

[Susan Calvin]

19. I retired prematurely, not in the sense of age,

Because I'm pushing 70, but in the sense of I never wanted to retire and never intended to. But I wasn't going into the petri dish of my work environment.

[Xolodno]

20. Company I work for offered a buyout...

....to everyone over 55. They were hoping to get 750 and got over 1200. Some took it and went to work at a different job. Others were already close or had planned to retire shortly anyway.

Now we have over 300+ openings.

[Johonny]

23. Many worked from home and discovered being semi-retired wasn't such a bad thing

My work is losing 60+ employees as we head back to working in person. The threat of death makes "work" not people's number one priority. Those that can retire, are retiring.

[Demovictory9]

25. Great thread

[voteearlyvoteoften]

26. Thank you again President Obama

Because of the ACA those of us who retired pre Medicare can get affordable healthcare.

[honest.abe]

27. I'm FRA full retirement age in November.

Still working full time but will take social security benefits now since I can get full payment with no deductions.

[MiniMe]

31. I have a friend who can't wait to retire

The only thing that stops her from quitting today is insurance. I retired about 6 or 7 years ago, and insurance is a killer. I can't wait until I am eligible for Medicare, that will be next year.

[OnDoutside]

34. My wife just qualifies as a boomer, and after 32+ years in the same company is praying for a package

She hates her job and would probably either never work again, or get a job as a part time sales assistant etc. I'm a couple of years younger, and I'm really happy in my job (at the moment !). If I had an extra 10-15 days holidays a year, I'd probably continue working for another 10-15 years. Currently, I make do with 25 days holidays as a permanent employee, but when i was a contractor I could take plenty of breaks when out of a contract.

[Deep State Witch]

37. Pushed?

In my case (I'm a Boomer by a little over a month), I fucking JUMPED! My husband also left his job at the end of September. We're in business for ourselves, with another partner.

[yardwork]

40. Raises hand!

[Hugin]

45. I'm not even a boomer and my lovely accountant is on me about this...

"Some people buy a boat and others collect stamps. But, your really expensive retirement hobby is continuing to work." Then there is an enumeration of how much it's costing me every week/month on my fixed since 2011 income to take my turn in the hamster wheel.

Paying to work, sucks.

My resistance to the argument is eroding. Plus, when I am on-site, everyone I knew has left.