The Changing Job Outlook: Challenges and Opportunities

The workforce in the United States is changing. Some long-standing professions are becoming obsolete, there are fewer manufacturing jobs,1 and some companies are moving their headquarters overseas for tax reasons.2 Then there is the increasing phenomenon of automation and robotics replacing jobs.

It’s interesting to note, however, that the job market is not fixed. It’s not as if people are being replaced by robots, but rather that the nature of work is changing and has different requirements. For instance, there is a steady transition from manufacturing to service industries. While a robot may be able to assemble products, it cannot develop software, health insurance policies or other intangible products and services that encompass so much of our income these days.3

As such, today’s job market offers unique opportunities for older workers. While some retirees need to work to supplement their income, others may simply get bored and want a new challenge. After all, retirement can go on for decades. That’s a long time for a career worker to be out of the workforce. By the same token, that’s a long time for savings to provide income. If you’re wondering how long your retirement income savings might last, come see us for an independent analysis. We can help assess your current financial situation to see whether it might be worthwhile to consider other retirement income strategies.

Another aspect of today’s changing job market is the growing shortage of skilled workers.4 When you think about it, this shortage creates an opportunity for retirees who want to go back into the workforce and are willing to learn new skills. According to the World Economic Forum’s 2016 “Future of Jobs” report, 33 percent of the essential skills that will be needed in the workforce in 2020 are not considered important today.5 This may create a good opportunity for people re-entering the workforce.

In fact, it’s because machinery is automating many previous jobs that some experts believe human creativity is the coveted skill of the future. It is the one thing that cannot be replicated by machinery, and thus holds more economic value.6 Pair creativity with experience and knowledge of specific markets and industries, and this is an area where older workers may truly thrive.

The best occupations for retirees tend to be in the white-collar sector and require experience, coupled with the advantages of maturity, patience and wisdom. Some of the top job options for older adults include consulting, local government positions, substitute teaching and tutoring.7

Content prepared by Kara Stefan Communications.

1 Heather Long. CNN Money. March 29, 2016. “U.S. has lost 5 million manufacturing jobs since 2000.” http://money.cnn.com/2016/03/29/news/economy/us-manufacturing-jobs/index.html. Accessed July 13, 2017.

2 The Economist. Aug. 17, 2015. “What’s driving American firms overseas.” https://www.economist.com/blogs/economist-explains/2015/08/economist-explains-9. Accessed July 13, 2017.

3 Alanna Petroff. CNN Tech. March 24, 2017. “U.S. workers face higher risk of being replaced by robots. Here’s why.” http://money.cnn.com/2017/03/24/technology/robots-jobs-us-workers-uk/index.html. Accessed July 13, 2017.

4 Reuters/CNBC. July 20, 2015. “Survey shows growing US shortage of skilled labor.” http://www.cnbc.com/2015/07/20/survey-shows-growing-us-shortage-of-skilled-labor.html. Accessed July 13, 2017.

5 Stephane Kasriel. World Economic Forum. April 25, 2017. “Yes, our working lives are going through massive change, but that doesn’t mean we’re heading for a jobless world.” https://www.weforum.org/agenda/2017/04/as-long-as-we-have-problems-to-solve-we-wont-run-out-of-jobs. Accessed July 5, 2017.

6 Itai Palti. World Economic Forum. April 19, 2017. “Could creativity drive the next industrial revolution?” https://www.weforum.org/agenda/2017/04/why-creativity-will-drive-the-next-industrial-revolution. Accessed July 5, 2017.

7 Jennifer Lawler. Bankrate.com. Feb. 26, 2016. “10 part-time jobs for retirees.” http://www.bankrate.com/retirement/10-part-time-jobs-for-retirees/#slide=3. Accessed July 5, 2017.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

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The Influence of Work

Work offers a confluence of possibilities, ranging from satisfaction to frustration to, many days, a little of both. If you work during retirement, here’s an interesting revelation: Social Security taxes are deducted from your work paycheck even if you’re already drawing benefits. For a lot of retirees, wages from some type of job represent a significant portion of their retirement income.1

This is a scenario in which you may be able to increase your Social Security benefits even if you started taking them early. If the annual income you earn in retirement is higher than the lowest inflation-adjusted year of earnings factored into your current benefit, a new benefit will be calculated for a higher amount.2

The decision to work or not during retirement is a personal one, based on both financial and lifestyle factors. Please contact us to discuss creating retirement strategies through the use of insurance products that can help you work toward your long-term retirement income goals.

When you’re making the decision about whether to retire, remember you may have more options than you think. Some people may want to work longer either because they could stand to save more or want to keep their brains engaged — or both. However, if they’ve grown tired of their job, they figure they might as well retire. But it doesn’t have to be one or the other. Many people go job hunting because they’re frustrated with their boss or company and no longer feel they get the respect they deserve.3 You can do that too, even if you’re older. If you aren’t ready to retire, consider looking for another job.

If that doesn’t appear to be a feasible option, there are other ways to cope with a job that has you down. People often talk about developing hobbies during retirement to occupy their time, keep their minds engaged and nurture a social network. There’s no reason to wait until retirement. Studies show people experience long-term fulfillment when they commit to an activity for the sake of the activity itself.4 This gives you something to look forward to doing outside work, so that the day-to-day grind is more tolerable. A secondary benefit is that once you do retire, the activity could be waiting for your full-time attention.

Then again, you might be considering quitting your job and working for yourself. To get started, human resources professional Liz Ryan offers the following questions to ask yourself:5

  • What services can I sell?
  • What kinds of problems or challenges can I solve for clients?
  • What is the going rate for my services?
  • How can I explore the possibilities as a new consultant while continuing to work at my job?
  • How can I market my new business?

Content prepared by Kara Stefan Communications.

1 Tom Margenau. Arizona Daily Star. March 23, 2017. “Social Security and you: Working seniors pay taxes and may see benefit increase.” http://tucson.com/business/social-security-and-you-working-seniors-pay-taxes-and-may/article_d12b59db-5376-549c-a628-e7c569db772c.html. Accessed May 19, 2017.

2 Ibid.

3 Liz Ryan. Forbes. March 31, 2017. “The Real Reason Good Employees Quit.” https://www.forbes.com/sites/lizryan/2017/03/31/the-real-reason-good-employees-quit/#4390ea844b4e. Accessed May 19, 2017.

4 Brad Stulberg. New York. March 27, 2017. “Your Job Can’t Be the Only Meaningful Thing in Your Life.” http://nymag.com/scienceofus/article/how-to-find-meaning-outside-of-work.html?mid=twitter_scienceofus. Accessed May 19, 2017.

5 Liz Ryan. Forbes. April 2, 2017. “Full-Time Employment Is Great For Employers – Not So Great For You.” https://www.forbes.com/sites/lizryan/2017/04/02/full-time-employment-is-great-for-employers-not-so-great-for-you/print/. Accessed May 19, 2017.

We are able to provide you with information but not guidance or advice related to Social Security benefits. Our firm is not affiliated with the Social Security Administration or any governmental agency.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

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