Managers and professionals in their 50s who get downsized out of a job increasingly don't opt for early retirement. Many can't afford to stop working.
But finding a new position means they must convince a prospective employer that they aren't too old to learn something new and have the energy to work as hard as employees in their 20s and 30s. Job candidates in their 50s also must convince the prospective employer that they are comfortable reporting to a younger boss--and perhaps willing to earn less than in prior jobs.
Older job searchers also must avoid getting weeded out because of the high pay they received in prior jobs. The U.S. Department of Labor found in 2005 that the average annual earnings per worker peaked at $39,156 between the ages of 45 and 54, and then declined to $31,096 for workers 65 and older.
According to a December 2005 retirement study from AARP, an advocacy group for older Americans, 68% of workers age 50 to 70 said they planned to work full time after the traditional retirement age. While the median retirement age in the 1990s was approximately 62, 75% of respondents in the survey expected to continue working until at least 65. Among the most popular reasons to continue working were the desire to stay mentally active, and the need for income and health benefits.
Source: The Wall Street Journal, April 18, 2006
