Several years ago, gerontologist and author, Ken Dytchwald, wrote an article for the Harvard Business Review arguing that retirement, as it has been practiced in the US, is coming to an end. These past two years have only intensified my belief that this is true.
While we are still surrounded by retirement funds, retirement communities, and the AARP (formerly the American Association of Retired Persons), we are coming to a point where individuals will not ceremoniously end their careers
and stop working all together.
A large part of this transition is economic, but a good portion can also be attributed to the Baby Boomers’ desire to remain active and relevant. As much as they talked at one point of retiring early, their perception of retirement have never been the same as their parents.
Of course, health plays a role in this. A couple of years ago, the Employee Benefits Research Institute released a study indicating that more that forty percent of those who plan to work past age 65 find themselves unable to do so due to medical incapacity. But we will never see a return to the age of the gold watch, retirement party and golfing five days a week.
On top of this, it has become apparent that today’s younger generations now see most employment as a contract rather than a continuous career. Some even drop out for a period of time to pursue travel, charity work, personal exploration and, of course, child rearing.
This is compounded by the increasing number of young people who prefer to sell their services independently rather than hooking their star to a large organization. The overall lack of job security has also taught them that making a living is their responsibility, not the employer’s.
If the Baby Boomers do not retire and subsequent generations follow this lead, society will lose its collective memory about the role of retirement in our culture. While I do not lament this, I do wonder what impact this will have on employers, the financial services community, housing, leisure industries, tax structures, volunteer and community service efforts, and health care delivery.
Just something to think about. Let me know your thoughts and reactions.