PLANSPONSOR - October/November 2020 - 13

Retirees in Name Only
LONGEVITY will inevitably make work
a requisite for retirees in the coming
years, while competition for jobs will
reduce these Americans' earning power,
said speakers at a webinar hosted by the
Longevity Project, the Stanford Center on
Longevity, and Wells Fargo.
" Working Americans should expect
a 30-to-40-year retirement. Sixty-four
percent now plan to work once they leave
full-time employment, " said Ken Stern,
chair of the Longevity Project.
Tracie McMillion, head of global asset
allocation strategy for the Wells Fargo
Investment Institute, said helping people
grapple with the challenges that arise
from living a long life is a focus for Wells
Fargo. " That means not only preparing
for retirement but living the life they
imagined for themselves in retirement.
People may be looking to work longer, not
only for the financial reasons but because
they're looking for meaning and purpose
in retirement, " she observed.
Chris Farrell, senior economics
contributor for Minnesota Public Radio,
agreed that money is not the only reason
continuing to work appeals to older
people. " We are redefining retirement so
there's a blend between work and leisure, "
he said. " Loneliness is an important
reason why a long retirement isn't desirable.
As we've learned from the current
pandemic, people crave connection with
each other and being part of a group.
Work is key to people staying connected
to the broader society. "
Whereas those who will be affected
by the nation's retirement savings shortfall
must work, the pandemic is only
exacerbating their prospects, said Teresa
Ghilarducci, professor of economics at
The New School. " This is a tale of two
countries. There are those people who
haven't been able to keep their job and
those who have. But among the latter
group, older people are scared because
they're much more likely to lose their job
in a recession. " For those ages 62 and
older, there are limited job opportunities
and " a lot more inequality, " she said.
Not only can losing a job derail
a person's retirement, but dips in the
broader economy can as well, McMillion
said, pointing to the terrorist attacks of
9/11 and the Great Recession of 2008,
not to mention COVID-19. The only way
people can counter these challenges is to
have adequate savings-including emergency
savings-to refinance their debt,
to create a budget and to lower expenses,
she said.
Part-time work might be a possibility
for older workers, or even entrepreneurship,
she added.
" Working
Americans
should expect
a 30-to-40-year
retirement.
Sixty-four
percent now
plan to work once
they leave full-time
employment. "
Farrell advised turning to one's
network of business connections, one's
church or synagogue, or one's community
to seek new work opportunities-
also to figure out new horizons.
For Americans still working, a
means to build savings is to postpone
taking Social Security, Ghilarducci said.
If people claim their benefits at age 70 vs.
62, their payments will be 32% larger.
In a few decades, it will not be
uncommon for people to work until 70
or even 80, Farrell predicted. " Thirty
years from now, college campuses will be
multigenerational-including students
in their 60s. Many people may never
retire, or will pursue different careers
over their lifetime. " -Lee Barney
64%
" Loneliness is
an important
reason why a long
retirement isn't
desirable.
" Thirty years from
now, college
campuses will be
multigenerational-
including students
in their 60s. Many
people may never
retire, or will pursue
different careers
over their lifetime. "
As we've learned from the
current pandemic, people crave
connection with each other and
being part of a group. Work is
key to people staying connected
to the broader society. "
Social Security Benefits
If people
claim their
benefits at
age 70 vs.
62, their
payments
will be 32%
larger.
+32%
AGE 62 AGE 70
PLANSPONSOR.COM October - November 2020 13
http://www.PLANSPONSOR.COM
PLANSPONSOR - October/November 2020

Table of Contents for the Digital Edition of PLANSPONSOR - October/November 2020
