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Seven Reasons Why Baby Boomers Continue Working

Posted by Crystal T on June 22, 2012 at 4:05pm

31040779467?profile=originalThe anomaly is that people in America are living 30 years longer than people in the 20th century but only working two years longer.  In 2000, the average retirement age was 62, and the average retirement age in 2010 was 64.  Many of the recent retirements were involuntary: the massive lay-offs between 2008-2012 because of the Great Recession, corporate mergers and consolidations, work being outsourced to other countries, increased automation, and other factors.  Many were also voluntary as employees accepted attractive severance packages or just wanted to get off the corporate treadmill.

 

Here are the seven principal reasons why many people 55 and older (55+) want to continue working after retirement: 

  • The need for additional income to maintain a standard of living or the desire to have additional income for discretionary spending
  • Recognition that, with knowledge of their increased longevity and vulnerability of their financial resources through market fluctuations, it may be necessary or desirable to generate additional income through a career after retirement
  • The desire for continued interesting/stimulating/challenging work to maintain cognitive skills and abilities
  • The desire to maintain self-esteem and self-fulfillment by continuing in productive activities that add value
  • The desire to maintain relationships with the outside world and to remain socially connected
  • The attraction of continued part-time work, without the responsibility and stress of a full-time job, to enhance the satisfaction with life and overall feeling of well being
  • The opportunity for flexible workplace options that offer greater choices than full-time work plus an attractive benefits package that desirably includes healthcare coverage

 

My consulting firm, Human Resource Services, Inc. (HRS) organized a “Survey on the Strategic Involvement of HR in Fortune 1000 Companies” that was completed in November 2011 and conducted by Harris Interactive, with 25 major companies as sponsors.  Only 24% of the HR heads stated that their companies provided flexible workplace options.  The options include:

  • Reduced working hours
  • Reduced working days
  • Flexible working times that may be variable
  • Seasonal work
  • Job sharing
  • Telecommuting (i.e., working from home with telecommunications connections)
  • Different work assignments (e.g., mentoring or training younger workers, a new functional or business area)
  • Project assignments

 

As the economy improves and companies face the reality of an aging and shrinking workforce, many more will be required to develop flexible workplace options.  In a recent AARP survey, 80% of Baby Boomers indicated their intent to continue working, more than half on a part-time basis. Companies will be required to tap this large and growing talent pool of workers 55+ because of their experience, expertise, seasoned judgment and proven performance (we call that EESP).  And recent surveys conducted among Generation Y and Millennials indicate that many of them want more flexibility to spend time with their families and engage in other activities.

 

Companies would also be well advised to maintain databases of retired workers who may want to continue working on a part-time basis because it is substantially more efficient and cost effective to hire former employees who know the company and can continue to add value.   The alternative is to pay a fee to a staffing company for part-time help who don’t know the company, the people and the way it functions. 

 

HRS has created a nonprofit, the Center for Productive Longevity, with this mission:

To stimulate the substantially increased engagement of people 55 and older in productive activities, paid and volunteer, where they are qualified and ready to continue adding value.

 

In furtherance of this mission, CPL will be working closely with the HR heads of major companies around the country to increase their focus on flexible workplace options, as well as reaching out to mid-size and smaller companies. For more information, please visit www.ctrpl.org/.

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Baby Boomers Are Fastest Growing Segment in Entrepreneurial Wave

Posted by Crystal T on April 26, 2012 at 2:40pm

The Center for Productive Longevity (CPL), which serves as the bridge between people 55 and older and the opportunities that enable them to continue in productive activities, today announced the results of the first in a series of four meetings, “Spotlight on Entrepreneurship Opportunities for Baby Boomers.” During a time of high unemployment and low economic growth, CPL initiated the 2012 series to stimulate the interest of Baby Boomers in new-business creation.

 

The first event was held at the Kauffman Foundation in Kansas City, MO, a focal point for entrepreneurship in America, and attracted almost 100 participants to engage in interactive discussion and dialogue about entrepreneurship. Sponsors of the event included the Kauffman Foundation, AARP, the National Association for Community College Entrepreneurship (NACCE) and CPL.

 

Written evaluations from the event indicated that almost all participants have a strong desire to start a new business; 97 percent stated they are more likely to create a new business as a result of attending the daylong meeting. 

These responses mirror a national trend where increasingly more Baby Boomers are starting their own businesses. In fact, according to the Kauffman Foundation, from 1996 to 2011 the number of Baby Boomers starting a business increased by nearly seven percent, the largest increase among all age groups. For people 20-44, the number of people starting a new business actually fell about five percent during that same time period.

 

“There is a wide range of individual, economic and societal benefits for the Baby Boomers to start new businesses,” says William Zinke, 85, founder and president of CPL.  “People are living longer, yet often retiring earlier, and recent AARP studies confirm that 80 percent of Baby Boomers indicate their intent to continue working after leaving regular career jobs.”

 

Additional feedback from the meeting found that 87 percent of attendees stated that the event increased their awareness and understanding of the benefits and opportunities provided by entrepreneurship “very much” or “a great deal.” Seventy-seven percent indicated that they were “a great deal” or “very much” more likely to pursue programs or courses on entrepreneurship as a result of attending the event.

 

Speakers from the March meeting included Benno C. Schmidt, Jr., Interim President & CEO, Kauffman Foundation and former President, Yale University; Bruce Merrifield, former U.S. Undersecretary of Commerce and Chaired Professor of Entrepreneurship, the Wharton School; Mary Beth Izard, author of BoomerPreneurs; Jerry Kelly, CEO and Co-Founder, Silpada Designs; and Danny O’Neill, President and Founder, Roasterie.

 

Human Resource Services, Inc. (HRS) created CPL as a non-profit to serve as the bridge between people 55 and older and opportunities that enable them to continue as productive contributors. The economic benefits of enabling people 55+ to continue working include providing them with needed income, contributing to–instead of drawing from–entitlement programs, reducing unemployment and increasing national economic growth.

 

The next “Spotlight on Entrepreneurship Opportunities for Baby Boomers” meetings are scheduled to be held at Babson College in Wellesley, MA on September 14, Northwestern University/Kellogg School of Business in Chicago on October 11, and the University of Denver on November 15. To register, visit

http://www.ctrpl.org/entrepreneurship-meeting/overview. Follow the Center for Productive Longevity on Facebook at facebook.com/CTRPL.

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Center for Productive Longevity Working to Defuse the Ticking Time Bomb

Posted by Crystal T on May 10, 2012 at 2:04pm

The Center for Productive Longevity (CPL), which serves as the bridge between people 55 and older and the opportunities that enable them to continue in productive activities, today described “The 3 Important Ways to Defuse the Ticking Time Bomb of our Aging Workforce”. With 77 million people in the United States 55 and older, we are at a tipping point: we can either watch them sit on the sidelines, drawing from unsustainable entitlement programs and the general economy, or we can enable this growing population segment to continue working and contribute to the country’s economic growth and prosperity.

 

Recent surveys by AARP indicate that 80 percent of the Baby Boomers intend to continue working after leaving their regular career jobs, more than half on less than a full-time basis. Many need or want the additional income, particularly because of their wealth reduction from the recession in 2001 and the global economic crisis that began in the U.S. in late 2007. Other reasons to continue working include the desire to maintain cognitive skills, continue adding value, and remain socially connected.


“We have been aware of this ticking time bomb for years without taking effective action.  Now it’s really getting louder with the growing retirement of Baby Boomers at the rate of 4.2 million each year from 2011 through 2029, compounded by high unemployment and low economic growth for the foreseeable future,” says William Zinke, 85, founder and president of CPL. “We can defuse this time bomb by creating a wave of entrepreneurship across the country and stimulating employers to take a more flexible approach in providing employment opportunities for older workers.”

 

According to CPL, we can defuse the ticking time bomb of our aging workforce in three important ways:

 

1.            Baby Boomer Entrepreneurship

Create awareness and understanding among the Baby Boomers about the benefits and opportunities of creating their own businesses. Entrepreneurship remains a critical factor in the country’s economic growth and vitality, with a spirit of pioneering and self-reliance still a part of America’s DNA. 

 

2.               Flexible Workplace Options

Stimulate employers to develop phased retirement programs and other flexible workplace options that will retain and attract Baby Boomers 55 and older who want to continue working but on a part-time basis.  A movement is developing in this direction, but a recent survey by Harris Interactive indicates that only 24 percent of Fortune 1000 companies provide such options.

 

3.            Greater Talent Pool Utilization

The reality is that America has a large and growing talent pool of workers 55 and older with experience, expertise, seasoned judgment and proven performance (EESP). Research shows that older workers have a higher level of commitment, reliability and motivation; have better overall skills and abilities than younger workers; and have much lower absenteeism and turnover. This talent pool must be tapped to a substantially greater degree.

 

“Economic growth and our standard of living may be reduced if older workers are not provided with opportunities to continue working, yet there is no real recognition of the need to do so,” adds Zinke. “It is CPL’s purpose to change the national mindset about aging and retirement.”

One way CPL is highlighting the benefits of senior entrepreneurship is by organizing a series of four meetings titled “Spotlight on Entrepreneurship Opportunities for Baby Boomers”. The first meeting was held at the Kauffman Foundation in Kansas City, MO, the focal point for entrepreneurship in America, on March 27 with almost 100 participants and excellent feedback. The next three meetings will be held at Babson College in Wellesley, MA on September 14, Northwestern University/Kellogg School of Business in Chicago on October 11, and the University of Denver on November 15. To register, visit http://www.ctrpl.org/entrepreneurship-meeting/overview.

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Consumer’s Interest High at Community Banks

Posted by Erik Keith on December 22, 2008 at 2:30pm
It took $4 gasoline to get folks to think about their driving habits. Similarly, it looks like a meltdown of the megabanks and other financial institutions is prompting consumers to think about where they are putting their money, who they can trust and what results they should expect. And much of their hard earned cash is flowing into deposits at community banks:• According to the FDIC, banks with less than $10 billion in assets, community banks, have seen an increase in deposit growth this year from a minus 0.77% in Q1 to a positive 2.06% in Q3. Larger banks witnessed a 3.81% decline in growth of deposits for the same period.• The Federal Reserve reported that October deposits and lending at community banks outpaced the overall industry. Between October 1 and October 22, community banks saw deposits rise 1.1 percent, or nearly $27 billion, to more than $2.4 trillion. For the same period, the nation’s 30 largest U.S. chartered banks saw $44 billion, or 1.2 percent of deposits, walk out the door, leaving them with less than $3.8 trillion.• REWARDChecking, a free checking account offered by more than 450 community financial institutions across the country, reported a 96% jump in deposits in the third quarter of this year.“Through products like REWARDChecking, community financial institutions are winning back customers from the faltering megabanks and investment houses,” said Don Shafer, Chairman of BancVue, a leading provider of products and consulting to community banking institutions. “Americans are indicating that they enjoy investing their money locally, and they benefit from high yields, fiscal safety and customer service.”Higher yields on short term deposits like those found on CheckingFinder.com are certainly fueling interest in community banks. Month-to-month applications on CheckingFinder.com (https://www.checkingfinder.com/), a website that connects consumers with community financial institutions offering high-yield checking accounts, jumped 14% from July to August, 46% from August to September, and 53% from September to October. A small sampling of applicants on the site indicated nearly seven out of 10 were moving their funds to community financial institutions from large banks.Examples of the yields found at community banks compared to those higher yielding shorter term deposits at megabanks (as of December 15) includes:COMMUNITY BANKS YIELDS PRODUCTSCommunity Bank of Pleasant Hill, MO; 6.10%; High-yield CheckingFirst Robinson Bank, IL; 6.01%; High-yield CheckingLegence Bank, IL; 6.01%; High-yield CheckingCommunity Bank of Raymore, MO; 6.01%; High-yield CheckingThree Rivers FCU, IN; 6.01%; High-yield CheckingFlorida Central Credit Union, FL; 6.01%; High-yield CheckingUnion State Bank/Bank of Atchison, KS; 6.01%; High-yield CheckingBank of Granite, NC; 6.00%; High-yield CheckingMEGABANKSWAMU; 5.00%; CD (5 years)eLoan; 4.75%; CD (6 years)Schwab; 3.60%; CD (18 months)ING; 3.75%; CD (1 year)HSBC; 3.50%; CD (1 year)Countrywide (BofA); 3.10%; CD (9 months)eTRADE; 2.25%; CD (12 month)“Three years ago the issue of 'how secure is my money?' was literally not on the consumer’s radar; today, the future viability of the nation’s largest banks is,” continued Shafer. “Not so with community banking, a system that has endeared trust by its roots and not by its branches.”
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Analysis Shows Megabanks Have 23,000 Times More Exposure to Credit Default Swaps than Community Banks

Posted by Erik Keith on March 25, 2009 at 3:57pm
Healthy Community Banks Unfairly Impacted and Consumers Should Heed Wake-Up CallAs the economic crisis puts a spotlight on the obscure world of credit default swaps (CDS), an unregulated $62 trillion market that most people never heard of and even fewer understood, the fear of a CDS catastrophe is haunting the country’s largest banks, and the nation’s healthy community institutions and consumers are paying the price.An analysis of FDIC data as of 12/2008 conducted by BancVue (www.bancvue.com), a leading provider of products and consulting to community banking institutions, shows that commercial banks $10 billion or larger have just over $24 worth of credit derivatives for each dollar of equity. By comparison, the rest of the industry has essentially one-tenth of a penny of CDS for each dollar of equity. Those numbers translate to the big banks having roughly 23,000 times as much credit derivative exposure versus all other community financial institutions.This comes at a time when megabanks are already reeling from write-downs on mortgage-related securities. "These are the same institutions that themselves have either directly or through subsidiaries invested in the subprime market," said Don Shafer, Chairman of BancVue. “After suffering losses all over the place, the megabanks are now waiting for the next shoe to drop. In the meantime, it’s placing an undue burden on healthy small banks and should serve as a wake-up call to consumers.”Since the mortgage-backed securities that many swaps were supporting began to lose value in 2007, investors have feared that the swaps, originally meant as a hedge against risk, could suddenly become huge liabilities. While the CDS marketplace is completely unregulated and the swaps trade without a central clearinghouse, it’s known that commercial banks are among the most active participants. According to the Comptroller of the Currency, JP Morgan Chase, Citibank, Bank of America, and Wachovia were ranked the top four most active players.In February, federal regulators facing a cascade of bank failures depleting the deposit insurance fund raised the fees paid by U.S. financial institutions. Although the FDIC intended on charging more from higher risk banks, they also suggested levying a hefty emergency premium in a bid to collect $27 billion this year. The higher premiums being assessed were originally set for 20 cents for every $100 of insured deposits levied equally on the 8,305 federally insured institutions. To put that in perspective, for a $250 million dollar community bank, the “one time tax” would constitute a $500,000 hit, which could wipe out 20% to 40% of a bank’s annual profits. At the Independent Community Banking Association Convention last week, FDIC Chairman Sheila Bair predicted that the assessment will probably be lower. She went on to say that the FDIC is seeking comments on whether the agency should use total assets or some other base for the special assessment, which would have consequences for how the burden is distributed.“How about basing part of the assessment on the amount of credit derivatives a bank holds compared to their equity?” continues Shafer, referencing BancVue’s research showing the extraordinary exposure to CDSs of the megabanks versus the community financial institutions. “If you are going to unfairly burden smaller banks that played by the rules, the least the FDIC can do is base the levy on the banks that helped trigger the crisis.”Even amidst this threat and turmoil among the megabanks, consumers are still trusting more than 70% of deposits in the U.S. to these large financial institutions. “Americans appear to be paralyzed in their banking relationship leaving so much of their hard earned cash in TARP and CDS-laden megabanks. It’s time for consumers to wake up and evaluate their banking options, particularly when community banks offer a less risky deposit alternative with better products and services,” concludes Shafer.
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Consumers to Get Dave Ramsey Financial Advice With High Yield Checking

Posted by Erik Keith on March 20, 2009 at 2:23pm
With the economy and investment opportunities slimming, consumers are looking for alternative, safe avenues for storing their money other than their mattress. CheckingFinder.com, home to the highest yielding free checking accounts at community banks and credit unions across the nation, has announced a limited time offer of a trial membership to Dave Ramsey's MyTotalMoneyMakeover.com for every person who submits an application.In addition to the advice and tools from Dave Ramsey, a personal money management expert and best-selling author, consumers will find checking accounts yielding up to 5.15% APY and be able to open them within minutes on CheckingFinder.com."Dave Ramsey is renowned for offering life-changing financial advice on his nationally syndicated radio talk show and in his books, and we're proud to be able to offer his MyTotalMoneyMakeover.com, especially during these tough economic times," said Gabe Krajicek, Chief Executive Officer of BancVue, the company responsible for providing high-yield REWARDChecking® to community financial institutions and aggregating them with the help of marketing partner, FIRST ROI on CheckingFinder.com.CheckingFinder.com is an online search engine that helps consumers find free, high-interest checking accounts with no minimum balance from community financial institutions across the country. Consumers have the peace of mind knowing that all these accounts are insured through the FDIC, NCUA, or ASI. The advertised rates are not introductory teaser rates, there are no monthly fees or minimum balance requirements associated with the accounts, and ATM fees are refunded nationwide.Dave Ramsey's MyTotalMoneyMakeover.com is a subscription site helping people discover financial peace by walking them through Ramsey's 'baby step process' for dumping debt and building wealth. MyTotalMoneyMakeover.com is widely considered to be one of the best tools available to keep people motivated and accountable for their finances."Dave Ramsey has been a solid supporter of what we're doing at CheckingFinder™ and with the REWARDChecking accounts," said John Waupsh, Chief Executive Officer of FIRST ROI. "He truly understands what it means for money to work harder."For more information on these free, high-yield checking accounts at community financial institutions and the free trial offer to Dave Ramsey's MyTotalMoneyMakeover.com, visit http://www.checkingfinder.com.
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Personal Financial Stimulus Package

Posted by Erik Keith on March 12, 2009 at 10:47am
As Personal Savings Rise to 5%, Consumers Could be Making Up to 6% APRAccording to the U.S. Commerce Department on Wednesday, the personal savings rate surged to 5% in January. As consumers frantically try to save their money as the economic outlook continues to look bleak throughout much of the country, they could be making up to 6% APR on their checking account.A “personal financial stimulus package” starts with the basics—your banking relationship. Community banks are still offering the best interest rates on free checking accounts:Florida Central Credit Union 6.01First Robinson Savings Bank 6.01Communications Federal Credit Union 5.25Connexus Credit Union 5.15Community Bank of Pleasant Hill 5.01Three Rivers FCU 5.01Union State Bank/Bank of Atchison 5.01Beacon Federal Credit Union 4.51In over 4000 community financial institution branches across the country, consumers are receiving from 3% to 6% interest rates on free checking with no minimum balance and reimbursed ATM fees. And these are NOT teaser rates.With a history of delivering value and customer-centric service, selected community banks and credit unions are offering free checking accounts with CD-like yields. The bank or credit union realizes operational savings when account holders accept eStatements, utilize direct deposit, access online banking, and increase their debit card usage and returns it to the consumer in the form of higher yields.To help consumers find community banks and credit unions with high-yield checking accounts, www.checkingfinder.com was created.
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