"It is sad to grow old, but nice to ripen."...Brigitte Bardot
According to a series of articles in the NY Times column “The New Old Age”, adults over the age of 80 are the fastest growing segment of the population. So, what are all these elderly people doing with their lives?
Well, as you might imagine, some are living the life they dreamed of, but a growing number are still working…some out of necessity and some just because they want to keep busy.
Those with financial security and good health are living the retirement lifestyle they planned. Those who aren’t in good health need someone to take care of them; oftentimes this burden rests with their children, another relative, or a home health aide. The elderly who aren’t financially secure need help, too; again this burden typically falls on their children’s shoulders.
However, more and more seniors are taking matters into their own hands and continuing to work to support themselves…or just for the fun of it. In fact, for many seniors, the jobs they are getting are the most fulfilling they’ve ever had.
Recently, I had some work done in my house and needed to get a room painted. The carpenter I used recommended a painter he has referred to other clients, so I had him come over to give me an estimate. When I opened the door, I was surprised to see an elderly gentleman standing before me dressed in his painting whites and holding a clipboard.
While he was measuring the area to be painted, we chatted. Clearly, he was well past retirement age, but he was still working…painting. He told me that he doesn’t need the money, but wants to keep working because some of his friends retired, then got sick and/or passed away. He doesn’t want to spend his days on the couch in front of the television. His theory is that if he keeps working, keeps active, and keeps his mind engaged, he’ll live longer. A lot of today’s seniors feel the same way.
However, finding a job when you’re well past retirement age is not an easy task. There are several obstacles that get in the way, including age discrimination, available jobs (currently there is a 5.7% unemployment rate for people over 75), and competition from younger workers.
These statistics are worth noting:
As a financial advisor, you should be doing everything you can to help your clients formulate an appropriate retirement strategy. But, what else can you be doing to support your clients who are approaching retirement age?
When we talk to financial advisors, many of them will say that "retirees" are one of their target markets. What is becoming more apparent each day is that the "retiree" population is remarkably heterogeneous. For advisors who want to specialize in "retirees", it might make more sense to further isolate sub-sets of this growing demographic and become an expert in the needs and concerns of more homogeneous groups.