Age Discrimination and Retirement Problems for Boomers

What would you do if you weren’t ready to stop working and you were terminated because of your age? A man named Archie Hale says he lost his job because of his age. Hale worked in Chattanooga, Tennessee for ABF Freight System, where he was a supervisor. He received good evaluations and over the years he was awarded 19 raises. Hale claims that his supervisor made the statement that when he (Hale) turned 62 it was time for him to go because then he could collect Social Security. Hale was fired  shortly after his 62nd birthday, but he is fighting back in court. You can read more about his case at AARP.

I suspect there are others who have found themselves in similar situations to Mr. Hales and to make matters worse once someone over 45 loses a job it’s much, much harder for them to find another one.

  • Workers over 45 are unemployed longer than younger workers.
According to an article I read on PBS website when the recession hit  older workers were the first to go. Many of them were in the highest salary bracket and getting rid of them saved their companies money. Many of these men and women are having a very hard time finding another job. Some of them have searched for years before finding employment and some of them still haven’t returned to work.
  • More older workers are considering postponing retirement because of the down economy.
Just a few weeks ago I was talking with a friend who is in her late 50′s. I asked her if she was thinking about retiring anytime soon. Her reply was, “With the present state of healthcare I’m afraid to even thing about retiring.”
My friend isn’t alone. One out of two workers says they will delay retirement solely to keep their health plan, reports the Employee Benefit Research Institute (EBRI); 1 in 4 says they would retire earlier than currently planned if they were guaranteed access to health insurance.
Here is an excerpt of an article that shows what baby boomers are thinking- The Deloitte Center for Financial Services found that 60% of preretirees believe health care costs will consume their savings no matter how much they save. Similarly, 39% believe investment returns won’t be high enough to provide decent retirement income regardless of how much they manage to put away.
Boomer Frustration

58% don’t have a retirement plan; nearly 40% don’t know what an annuity or mutual fund is; and 20% expect to rely purely on Social Security for their retirement needs. More than half don’t trust anyone’s advice.

NanaHood wants to know….

  • Have you experienced age discrimination at work, or if you know someone who has.
  • Are you making retirement plans?
  • Are you concerned about how healthcare will affect those plans?
Leave comments and let me know if you would be willing to share your thoughts and your stories. I would love to do a follow-up story on age bias, jobs, and retirement and let you speak about your experiences and concerns!
And don’t forget to enter NanaHood’s Christmas Trees in July contest.…It ends this Friday and you might win a Balsam Hill tree!