Book Review: "Working Longer: The Solution to the Retirement Income Challenge"

According to a New York Times book review of Working Longer: The Solution to the Retirement Income Challenge, overworked, underpaid, aging baby boomers may have no choice but to work longer and retire later if they want to avoid a precipitous decline in our accustomed standard of living. Hunter Hurt III refers to the book by Alicia H. Munnell and Steven A. Sass as "thought-provoking" (albeit "if sometimes cloistered academic terms") and as defining "succinctly the problem faced by baby boomers, and for that matter, by all Americans who aspire to retire now or in the near future."

The authors contend that working longer and retiring later can generate powerful benefits for aging baby boomers and the workers in their wake. First, it would delay the need for people to tap into I.R.A.’s and 401(k)’s, thereby swelling their total assets and increasing the future income they can produce.

Second, it would help maximize the benefits of Social Security, which are about one-third higher for recipients who are 66 than for those who are 62.

Source: New York Times "Who Wants to Retire Later? (Don’t Laugh)" (July 20, 2008)

Book: How a Few Additional Years in the Labor Force Can Make a Big Difference.a Retirement

The Brookings Institution Press has announced the release of Working Longer: The Solution to the Retirement Income Challenge by Alicia Munnell and Steven Sass, the director and associate director of the Center for Retirement Research at Boston College. According to the publisher, amid all the calls to fix Social Security, shore up employer pensions, and redesign 401(k) plans, the auhtors suggest that the most effective response to the retirement income challenge lies in remaining in the workforce longer: "By staying on the job for another two to four years, retirees in 2030 can be as well off as those in the current generation."

Working Longer investigates the prospects for moving the average retirement age from 63, the current figure, to 66. The authors ask whether future generations of workers will be healthy enough to work beyond the current retirement age, as well as whether older men and women are willing to do so. They examine companies’ incentives to employ older workers and ask what government can do to promote continued participation in the workforce. Finally, they consider the challenge of ensuring a secure retirement for low-wage workers and those who are unable to continue to work.

A summary of the book is available, as well as the authors' list of 10 myths and realities about working longer.

Source: Brookings Institution Press Book Announcement (May 2008)

For other books on older workers and the aging workforce, see The Aging Workforce News Book Store.

Book Review: "Encore: Finding Work that Matters in the Second Half of Life"

Most baby boomers aren’t ready psychologically and far more often aren’t set economically to stop working entirely, writes Vince Carducci, and Marc Freedman is getting a bead on the situation and offers a solution in his new book "Encore: Finding Work that Matters in the Second Half of Life."

According to Carducci, Freedman considers that the trend of corporations shedding older employees and slashing payroll and benefit costs is creating a tremendous waste of human capital. While he goes through policy issues that are underlying this trend or contributing to the problems, he also profiles individuals who are part of the solution. In particular, he focuses on career shifts and "highlights several innovative programs that give an idea as to how we might usher in what he terms the 'encore society.'”

Wonks will debate these and other proposals Freedman puts forth, but average readers will no doubt be most interested in the self-help section at the end of the book. Freedman provides a self-reflection matrix—Are you a “recycler,” leveraging your past experience to enter a new field? Or, are you a “changer” looking to start anew? Are you a “maker,” trying to mold an interest into a career, turning an avocation into a vocation? Whatever your persuasion, Freedman offers online resources, networking ideas and other tips to help you follow your bliss in a more well-managed way.

Source: PopMatters.com "Work, the Sequel" (July 17, 2007)