Money, boredom lead many to seek out jobs
Mabel Medeiros proudly displays the gold watch that the former Imperial Knife Co. gave her when she retired in the late 1970s after 30 years of assembling tableware. But Medeiros, now 79, never really retired. These days she assembles boxes at the Taylor Box Co. in Warren.
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“I’m not the type to go out much,” Medeiros said. “And when I stay at home, I get lonesome.”
A massive study of recent retirees, sponsored by Putnam Investments, a Boston-based money management firm, revealed that about 7 million previously retired Americans have returned to work. That number translates to roughly 10 percent of the workforce over age 40.
About 54 percent work part time, the study found, while 36 percent work full time, and the rest are searching for work.
Their two main reasons to return to work: money and boredom. Two-thirds of the working retired return to the job because they want to, while the rest do it out of financial necessity, the study found.
The AARP conducted a study of its own of thousands of men and women between the ages of 50 and 70, and nearly half said their retirement plans called for working at least part time.
“Their financial situation might not be as they thought it would be,” said Barbara Peters, spokeswoman for the AARP in Rhode Island. “Or health care might be an issue,” she added, driving some retirees back to work so they can get benefits.
The Putnam study found retires who return to work do so after an average of 18 months’ retirement. Medicare doesn’t kick in until age 65, so anyone without employer-sponsored health benefits – fast becoming a rarity – would be uninsured or face steep premiums in the individual insurance market. And Social Security benefits, which can begin as early as age 62, can be so modest that without a nest egg or an employer-sponsored pension, a retiree can end up living dangerously close to poverty.
Whatever drives retirees back to work, however, Peters said it’s a win-win situation for the employee and the company.
“Older people are actively younger,” she said. “They have lots to give, and employers need their experience.”
Medeiros has worked at Taylor Box for nearly 20 years. With the energy of someone half her age, she assembles specialty high-end boxes by hand, but she can tell you how every machine operates and about every worker’s responsibility. She takes her own very seriously.
“This is a respectable place,” said Medeiros. “If you don’t like to work in a place, then you don’t like to work. … I take responsibility for the work I do. I go out of my head to help out if my boss needs something.”
“Young people don’t care if they work or not,” she added. “My bosses at Imperial Knife told me they wished they could have all the retired people back.”
Taylor Box President Daniel S. Shedd is at least as big a fan of Medeiros, whom he describes as one of his hardest workers. “I had to literally take her by the hand” to get her to rest, he said. “I had to show her to the lunch room and make her sit down to take a break.”
As Shedd sees it, Medeiros’ age – and that of her younger, but also graying, colleagues – is an asset. He elaborated in an e-mail to PBN:
“People ask me why we ‘allow’ our older employees to ‘stick around,’ and we do for selfish reasons: They are great workers with a wealth of knowledge and experience; they enjoy what they are doing (as in Mabel’s case, it is not for the money), and people who enjoy their work do great work; they set an example for younger, newer employees; they are careful and safe in their work, and finally, if you have been with us for 15 or 30 or more years and you want to be here and you are doing a good job, why wouldn’t we want you here?”
Woonsocket-based CVS/pharmacy has partnered with the AARP to actively recruit seniors. Today nearly 20 percent of the company’s work force is over 50.
“This is a good opportunity for these employees, but it also makes good business sense,” said Steve Wing, director of government programs for CVS. “Mature workers have the excellent work ethic we’re looking for. … They also act as mentors to our younger staff.”
Traditional notions of retirement fuel fear in economists over how our country will remain competitive while a huge generation of contributors moves into dependency, but the Putnam study indicates that retirement is more a temporary condition.
Nationwide, Wal-Mart employs more than 220,000 workers who are 55 and older, spokesman Chris Buchanan said. Wal-Mart recognizes the value of seniors, he said, and tries to be accommodating. “The hours of operations in our stores allow them to find schedules tailored to their needs.”
As for Medeiros, her needs are simple: She must stay busy. Asked if she’s contemplating another retirement, she smiled and replied only that she’s “thinking about it.”
