After 36 years of arranging and rearranging student dorm assignments at the University of Rhode Island, David Bauerle was contemplating retirement.
Bauerle, chief clerk for the college’s housing and residential life program, loved his job – loved reporting to his campus office, interacting with co-workers and the students themselves. But at 66, he was financially and mentally ready to spend his time on house projects, writing and music.
The pandemic also gave him a push, changing what he previously considered a “notion” to retire into a more concrete plan of action.
So when the state announced it was offering bonuses to eligible workers to retire, it was an easy decision for Bauerle to leave.
He is not alone. The pandemic has made many workers on or approaching the brink of retirement opt to cut their working years short.
A U.S. Census Bureau survey shows that, as of March 17, 3.3 million people were “extremely likely” to apply for Social Security or Medicare benefits in the next year, with 267,000 applying earlier because of the pandemic. In Rhode Island, 14,000 residents were “extremely likely” to apply for retirement benefits in the next year, with 6,000 citing the pandemic as a factor in their decision to apply earlier than anticipated.
The survey began when COVID-19 hit, making it difficult to determine how much the pandemic has impacted retirement plans. But anecdotally, employers and retirement planners in Rhode Island have seen a shift in the attitudes of workers and clients.
‘COVID has definitely added anxiety to coming to work.’
JOSEPH MCNAMARA, state representative
“I can’t say COVID has made major changes in people’s thinking, but it might have accelerated some of their plans,” said Peri Ann Aptaker, managing director for KLR Wealth Management LLC. in Providence.
Indeed, Lifespan Corp. has seen a higher turnover rate in the last year, according to John O’Leary, vice president of talent acquisition. While O’Leary could not provide specific turnover rates, nor did he know whether those leaving were retiring or simply changing jobs, he didn’t doubt that the in-person nature of many positions, working with patients, was in part to blame.
Right before COVID-19 arrived, Lifespan offered an early-retirement financial incentive, which just over half of its eligible 400 employees accepted, according to spokeswoman Kathleen Hart. The incentive was driven by cost-savings and had nothing to do with the pandemic, Hart said in an email. The company does not plan to offer a similar incentive this fiscal year, Hart said.
The R.I. Department of Administration’s “longevity bonus” for eligible state workers – the one Bauerle is taking advantage of – aims to relieve the financial uncertainty COVID-19 has caused for the state, the department said in announcing the program. As of April 1, 258 of 900 eligible employees had opted to take advantage of the bonus, according to DOA spokesman Robert Dulski.
These kinds of financial incentives may also be contributing to early retirement, although few private companies seem to be offering them, according to James L. Worrell, Northeast managing director for Strategic Retirement Partners in Providence.
A bill introduced by R.I. Rep. Joseph McNamara, D-Warwick, would let public school teachers who already earn the maximum salary and are within eight years of becoming eligible to collect a pension to cut their time to eligibility in half. Local school districts would give the money they would have contributed to the retiring teacher’s salary to the state pension fund.
McNamara called it a “win-win” for teachers and school districts.
A former educator, McNamara said the legislation was spurred by conversations he had with teachers.
“COVID has definitely added anxiety to coming to work, particularly for the older teachers who are more vulnerable,” he said.
At the same time, filling those open positions with younger, talented teachers could help “invigorate” the education system while also costing less in starting salaries, he said.
While retirement offers one path out of the state’s still-astronomical unemployment numbers, it’s not a panacea, said Matthew Weldon, acting director for the R.I. Department of Labor and Training.
“We’ve heard for a long time that those seasoned workers are important, that the skill set, knowledge and experience they bring are invaluable,” he said.
Just as the pandemic has prompted early retirement for some, it has also spurred others to extend their working years, particularly those who now work from home, Aptaker said. She said one of her clients was planning to retire this year but now, after eliminating his commute and adding midday dog walks to his daily work schedule, wants to keep working.
Bauerle, whose last day was April 14, had a different reaction.
Working from home took away all the things he loved most about his job: the camaraderie, and face-to-face interactions.
“I miss that very much,” he said. “It’s just not the same.”
Nancy Lavin is a PBN staff writer. Contact her at Lavin@PBN.com.
