CANADA: Thinking of Working Past 65? Think Again

TORONTO (MatureMarket), August 7, 2006: As fit and able as they may feel, many older workers are deluding themselves if they think they can keep working as long as they want to, according to provocative new research by McKinsey & Co. Those who plan to work past 65 "are setting themselves up for a rude awakening," the New York-based consulting firm warned in reporting the results of a survey of 3,000 retirees and preretirees in the United States. "While preretirees expect, on average, to work until age 67, the average age of retirees was only 59. Equally sobering, a full 40 per cent of retirees were forced to stop working earlier than they had planned, largely because of health problems or job loss," McKinsey reported. There is no mandatory retirement age in the United States. Even so, "while almost half of all baby boomers expect to work past 65, only 13 per cent of retirees have actually done so," the firm found. While this might come as a jolt to aging baby boomers who had little trouble landing work when they came of age in the 1960s and 1970s, it is no surprise to career advisers. "A fair amount of age discrimination still exists, but it is couched in terms such as a person won't fit in or that they are overqualified or that they may be too expensive," says Barry Witkin, founder of Prime50, an employment service for workers aged 50 and older. There is no reason that today's older workers cannot remain productive -- "the 50-plus age group is really the new 40-plus, mentally, physically and emotionally," Mr. Witkin says. Yet, despite widespread predictions of looming labour shortages as baby boomers move into retirement range, employers are not courting those experienced older workers who want to remain in the work force, Mr. Witkin says. "Employers are still holding on to the myths and false perceptions of the 50-plus worker without recognizing the reality of this age group." Research conducted last year for Bank of Montreal found that Canadians hold similar views about wanting to work beyond "traditional retirement" -- with a survey of 5,325 Canadians indicating that more than half of preretirees expect to work for an employer or family business or to be self-employed later in life. While the BMO report did not assess their prospects for doing so, a recent study by the Conference Board of Canada supports Mr. Witkin's perception of the lack of demand for older workers. The majority of Canadian employers make little or no effort to retain older workers, the Conference Board reported, and few are actively recruiting them. "Canadian organizations are aware that, by 2015, there will not be enough qualified people to go around. For the most part, they are doing little to tackle the problem," says Owen Parker, a senior research associate with the Conference Board. Economist Prem Benimadhu, the board's vice-president of organizational performance, blames "outdated ideas, ageism, not only in organizations, but also in the minds of employees who are aging. "It is obviously an organizational issue, but it is also a mindset issue," says Mr. Benimadhu, who notes that organizations have, for the past two decades, used early retirement plans and buyouts to make room for younger workers. This has sent a clear signal to some older employees that it is time to move on. In organizations where they are not being pushed, Mr. Witkin has noticed another problem that can limit the career prospects of older workers: Some make the mistake of coasting, in the mistaken belief that their current jobs are protected, or that finding another job will be easy. These are the ones who have the most difficulty when they suddenly lose their jobs because of unexpected downsizings, layoffs or buyouts, he says. Prime50, a division of employment services firm Drake International, has thousands of résumés of "mature workers" on its jobs website -- prime50.com -- but employers are not "lining up at the door" to hire them, Mr. Witkin says. However, interest is building and it is only a matter of time before retirements and labour shortages force employers to consider this untapped source of talent, he says. "It will evolve. You've got to hang in there." Yet, even when demand for older employees does pick up -- as he believes it will -- Mr. Witkin says it will still be a competitive job market because "there are far more boomers coming on stream compared to available employers who might hire them. This will create serious problems for many boomers to finance their longevity," he says. Mr. Witkin simply advises older workers to stay current and to continue to develop their skills. "Boomers need to be aware of what they must do to compete in the workplace against other age groups or other boomers." Mr. Benimadhu says many Canadians who opt for retiring early quickly find themselves bored. "There is only so much time that you can spend golfing," he says. Instead of quitting full-stop, Mr. Benimadhu suggests that more employees try to work out phased-retirement arrangements with their employers, through a gradual reduction of hours. Another option is to arrange to be a "retiree on call" -- a program some employers have adopted to bring back retired employees on a contract basis as demand requires. Even in jurisdictions where mandatory retirement has been eliminated, older employees who want to find new opportunities could still face hurdles. "This legislation is sending a message to people that they can stay in the work force," Mr. Benimadhu says. But while it may help older workers keep jobs they have, it does not compel employers to hire them into new jobs. "Ageism will always be there, just as racism will always be there," he says. "That doesn't mean you stop fighting it." Source: PRIME 50, Division of Drake International