First come the company buyouts, and now many senior employees are faced with taking early retirement. In most cases this is an act of desperation as most employees do not wish to retire early. For one thing early retirement means you lose around 25% of your social security benefits. You are living on less in a world that each day seems to be demanding more.
But when the economy is so poor that there is no work to be had, then early retirement is certainly an option. Reluctantly, there are workers who figure some income, however small, is better than no income. Perhaps when thee economy begins to turnaround they will be able to work part time. Working full time would necessitate their paying back whatever income they received from their social security. That can be tough.
Since the first year someone is eligible for early retirement is 62 years of age, such an action can be inconvenient and even painful. Given the average life expectancy, most of us would live ten, twenty, thirty years after that decision. Yet we would be stuck with that decision. At the same time trying to tough it out and find work, when you have no income, could mean the loss of the house and the inability to pay basic expenses.
The shame is many older workers have the type of experience required to see a company through tougher times. If nothing else, they have probably been through recessions before. Most have worked a good many years and can easily clear the background checks required by any preemployment screening program. Some senior workers have cultivated special skills and have made numerous contacts over the years. They know the lcients and know the vendors. This goes a long way in maintaining accounts in a tough economy.
It could be argued that senior workers receive higher salaries. It could also be argued their benefits are more expensive: healthcare for instance. But the fact remains that most senior workers not only need to work but want to work. Most find it boring to sit at home and do nothing. Even if they have hobbies and passions, gainful employment keeps them healthier longer and offers additional income. They feel relevant, and there is much they can offer the workplace.
So this is but one more story in a long line of disquieting stories that affect the American workforce, during this economic downturn. But one that is no small matter. Think of the loss in taxes as they people leave the working world. Think how the limited income forces them to cut back on basic staples as well as more luxury items, like new cars, clothing, appliances,whatever. Think how this impacts the wholesale and retail markets.
So in tne end, one act has multiple consequences. One group out of work is not just its problem. It becomes our problem. If they have no money then our businesses will suffer. And there is the bottom line.
