Should You Retire Now? Millions Fed Up Working Under Pandemic Conditions Have

The pandemic is wearing everyone out, and Baby Boomers are no exception. Individuals who were planning to retire two or three years from now are changing their minds. In the third quarter of 2020, Pew Research Center reported that about 28.6 million Boomers turned in their retirement notices and left their company, many much sooner than they planned.

Tom,65, is an Engineering Director for a large organization. He has been an exemplary employee working 60,70, sometimes even 80 hours in a week, if needed, for 22 years. Four months ago, the company pushed his boss out and had the boss take early retirement. Since then, the new boss has proved to be quite challenging to work with. She does not have an engineering background, making it frustrating and challenging. She asks for work that can’t be completed in her timelines due to her lack of technical knowledge. Tom loved his old boss and is very angry at his company for making his job so much harder by pushing the old boss out. He had been planning to work another four or five years. After months of working through the pandemic and how difficult it has been, Tom does not want to do it anymore. He is now counting every day until he leaves – currently 61.

Richard,62, is a marketing director for a large medical device company. We had worked together to develop his resume as he was thinking of moving someplace warmer and continuing to work for another five years. He oversees a portfolio of medical products. In the past, he would travel, set up demonstrations where the company’s surgeon would do an operation, and educate doctors on using his products in a surgery situation. He organized all the medical conferences plus state and national meetings. Everything changed when Covid 19 begin. No more travel, working totally from home, living on zoom, and trying to keep the products going even though no demonstrations could happen. Richard wrote this week to say, “I’m absolutely done trying to manage a product portfolio this way. I hate Zoom! A month ago, I got Covid and I have been sick for the last four weeks. To make matters worse, my wife got ill too, and we have no idea how we got this. The stress has been horrible. Last week, I decided it is not worth it anymore, and so I am retiring at the end of December.”

As large companies face the pandemic, many offered retirement packages to their older workers. These mature workers were told that if they didn’t take the package, they might find themselves being let go soon after and not getting any severance at all. Many employees took it.

Jane called in a panic to say that her company was ordering people back to the office. She said, “I am 63 with a heart condition. My doctor warned me to stay home until the vaccine is widely distributed. I fear if I get Covid, I will die. I talked to my boss and HR about this, and they suggested I retire. I feel boxed in, but for my safety, I am retiring.”

What’s going on?  

The pandemic already has fueled a surge in early retirements, according to a NY Times report recently published by three economists. They found that among people who had left the labor force through early April, 60% said they were retired, up from 53% in January, before the pandemic. The most massive increase was among people over 65. Still, nearly half of this group were 50 to 65, said Michael Weber, a co-author of the report and a professor at the University of Chicago Booth School of Business.

“This phenomenon is widespread across older workers, but it increases at age 65 when economic incentives play a role,” he said. That’s when Medicare eligibility begins, and full Social Security benefits are on the horizon.

The combined unemployment rate and underemployment for workers over 65 was 26% in May, roughly five points higher than for those ages 25 to 54. And the combined rates are exceptionally high for older workers who are less educated, black, Latino, or in specific industries, such as leisure and hospitality, transportation, and education.

Faced with the choice

Retire? Wait this crisis out? Do you look for a new job? Give up? Many mature workers are anxious about their job security. They feel like they are in a boat with a big leak. It is entirely understandable to be scared and frustrated by all the challenges you might face, particularly concerning finding another job, especially if you’ve been furloughed or laid off. It may sound easy just to give up and call yourself retired. Be sure that is what you want. Making this significant decision quickly or under extreme stress is not the right approach. If you are able, take a week off from work, relax, and rest up. Then consider this decision from a relaxed perspective if you can. Ask yourself these questions:

Am I up for a job hunt and possible relocation? The typical job search for a professional over 55 is likely 6-12 months or longer. First, try to test the waters. Network with old bosses, former co-workers, and colleagues to get a realistic picture of your job prospects. Would you need to move to land a new job? If so, where? Moving is a challenge at any age, so be sure you and your family are committed to doing this. The higher your job level, the more likely you’ll need to search nationally to secure a new role. Many companies doing remote work will aid you but be clear when you talk with the employer what their expectation is once Covid is over. Must you move, or can you still work remotely?

Are you willing to update your skills? You need to be tech-savvy in today’s online virtual world. Do you need to update your current computer skills and also your professional skills? If your industry has been hard hit, you likely need to make a career change to doing something new. That means taking classes, picking up a certificate, finishing a degree. – whatever is needed to make you more marketable.

Will You Need Income?

Many retirees still want to work but only part-time. Can you find something in your field? How hard of a search would it be? Many retirees are finding part-time jobs doing something new is ideal. You need to evaluate the risk of social contact with the public if the part-time gig isn’t working from home. Some older workers are still working as uber drivers, and others found part-time call center work remaining at home.  

Time for some soul searching

What do you want your future to look like now that the pandemic has changed everything? Do you want to be closer to family? Do you want to move to a cheaper area? Someplace warm? Is NOW the time to walk away from your professional life and retire? You need to take a realistic look at your Covid health risk, housing situation, living expenses, potential income upon retirement, and medical insurance if you aren’t eligible for Medicare. Then be honest with yourself about what you want the future to look like. If the current stress is too much, and you’d be happier not working, retiring now may be the wisest answer for you.