TO WORK OR NOT TO WORK AFTER 65? DO WE REALLY HAVE A CHOICE?

Who in their right mind would want to continue working upon reaching retirement age? After spending the best years of our lives working hard for others just so we can feed the family, most of us can't wait to clock out for good.

No more daily stress of a 9-5 job. The sheer joy of waking up late, and spending the rest of the day doing what we like. Time is our own, and we can finally withdraw all our savings from the EPF/CPF to spend as we like.

Life can't possibly be better than this. No wonder the retirement years are aptly called the golden years.

Yet, in a simple survey carried out by the Straits Times recently, 70% of the 50 workers aged 55+ said they would want to keep on working.

Straits Times, 3 May 2014

A good friend of mine is a strong advocate of full retirement after 55. He feels that retirees should not seek re-employment. They should just enjoy life to the full. For many that would mean playing golf, travelling, picking up new hobbies and spending time with the family.

Sure, we all deserve the good life upon retirement, don't we? But sad to say, many of us, especially those from the middle income bracket, can't afford to simply stop working. What happens when the pay check stops coming in? Who will take care of the bills for utilities? Who will pay for our children's postgraduate studies? Who will foot our elderly parents' medical expenses? Who will keep up with the mortgage payments and the insurance premiums?

And what about the rising cost of food and fuel? Inflation eats into whatever little savings we have.

We may live longer now thanks to better healthcare and advances in medicine, but longevity can be a bane for those who do not have adequate savings to support 15-20 years of retirement.

It's a growing worldwide trend for older workers to seek re-employment after retirement.

If your company offers to re-employ you in a different capacity, or extend your contract after you have reached retirement age, would you accept the offer?

I bet the answer for many of us is YES. We really don't have much of a choice.

You might want to read the following related article:

WORK BEYOND 65? WHY NOT?

WHAT IS AN OLDER WORKER WORTH?

 The Sunday Times editorial 17 July

Going by the editorial in The Sunday Times today, the answer is "Much less after 62". That's the official retirement age in Singapore. Come January 2012 when a new law on re-employment of older workers takes effect, employers will have to rehire older workers till they reach 65, with an option to extend employment till 67.  

While this may be welcome news to many employees who are about to retire, the new terms of re-employment might not be in their favour. Some companies which have started early implementation of the new policy have cut salaries of rehired older workers by as much as 30%, reduced medical benefits, and in some cases, taken away bonuses.

Source: The Straits Times 9 July

It all boils down to 'take it or leave it', with the employer having the upper hand. The older worker is in a weakened position to negotiate for better terms. He has little say in the matter, especially if he needs to carry on working to build a decent retirement nest. The only recourse left is for the respective workers' unions to present their case for a continuation of the current terms at best, or a less drastic pay cut at worse.

It's sad really. One day you are drawing a salary of X dollars. The very next day your value to the company depreciates for no reason other than you've just hit 62. If you continue to do the same work, it's only fair that you continue to receive the same pay. Anything less is clearly a case of discrimination against older workers.

Ministry of Manpower's Portal for Re-employment of Older Workers, Singapore.

Ultimately, it's up to the individual older employee to prove that advancing age in no way diminishes his work efficiency. If he can still put in a good day's work, he deserves to be fairly remunerated. Surely all his years of loyal service to the company plus his wealth of experience must be worth something.

RETIREMENT OR RE-EMPLOYMENT?

Singapore Minister Mentor recently made news when he said there should be no mandatory retirement age. He reiterates his stand in the Straits Times today which carried the headline "MM Lee: If a man is fit, let him carry on working". The former PM elaborates on his views on work and retirement in the email interview. Click here to read an extract. The full interview is accessible only to subscribers.

By coincidence, retirement is the cover feature in Malaysia's StarBiz today. Two seniors share their views on the issue with journalist Errol Oh.

Lily Fu, 62, who maintains the SeniorsAloud blog

A lot of people look at the seniors as one big homogenous group. It’s not the case, and certain policies don’t address this. The 55 and above category stretches to 85 or more. It’s a 30-year span and it’s very difficult to compartmentalise. The government policies on the elderly are mostly aimed at the poor. But there are also seniors who are wealthy and who don’t need financial help. And there’s a large band of people in between.

Some of those who retire tend to lapse into depression, feeling that they are no longer needed. At the same time, there is not much income coming in as before, and they have to grapple with inflation. They are not sure about what to do with their time.

We have to look for facilities and homes for the seniors. Where do we go? Surely not the old folks homes. There are many types of seniors. We are the baby boomers, who are better educated than our parents and we expect more. More has to be done on retirement living. What will happen to us when we reach our 70s?

Seniors are very proud people. They want financial independence. We have people who have retired at 55, but still have a lot more to contribute. However, their age and salary scale work against them. Why would companies want to employ them? There are very limited opportunities for re-employment, and these are mainly in areas such as consultancy and teaching.

I believe that raising the retirement age is to the Government’s benefit.

Bulbir Singh, 69, noted for his prolific letter-writing

I feel that my life now is very useful and valuable. I had prepared for retirement. At about 50, realising that retirement was close, I bought a home. I wanted a clean pension. I didn’t want to owe anybody.

I keep myself occupied. In fact, I’ve got little idle time these days. You’ve got to programme yourself to fill your days with activity and purpose. You have to be physically and mentally alert, and you have to make yourself useful.

We can’t just do nothing. There are 1,001 things to do. There’s no such thing as complaining about boredom. Those who can teach, can give tuition. There’s many ways of helping others, if we choose not to continue working for a salary. We have a civic duty, which means we owe something to society.

For the full article including interviews with other seniors, click here.

"THERE SHOULD BE NO RETIREMENT AGE"

That's what Lee Kuan Yew, 86, Singapore's former PM and now MM (Minister Mentor) proposed in his speech two days ago at a function celebrating the 30th anniversary of the Singapore National Employers Federation (SNEF).

From 2012, Singapore employers have to offer re-employment to workers when they reach the retirement age of 62.

Here is what LKY has to say about retirement and reemployment.

"You work as long as you can work and you will be healthier and happier for it. If you ask me to stop working all of a sudden, I think I'll just shrivel up, face the wall and just that..."

"At my age, I may have aches and pains but I can keep going."

"Many of our workers have a preferred retirement, and then they die early! If you start saying, 'Oh, I'm old!' And you start reading novels and playing golf or playing chess or scrabbles, well, you're on the way down."

"The Chinese saying says 'You live long, you learn long'. Never stop learning. The day you stop learning, that's the day you begin to die, atrophy, and I'm still learning."

Sound advice from an elder statesman who is living proof that lifelong learning and purposeful living are hallmarks of longevity.

To view a video clip of excepts from LKY's speech, click here

Related article:
LEE KUAN YEW ON AGEING

AT 55, ARE YOU READY TO RETIRE?

StarMetro interviewed me a few days ago for my views on retirees and re-employment. Here is an extract from the Star's 27 July edition.

Are retirees choosy when it comes to salary and fringe benefits and does that make it difficult for them to get employment?

Retiree Lily Fu, 62, a trainer with Wawasan Open University teaching learning skills, said retirees should make themselves more employable like by picking up new skills or obtaining extra qualifications.

“They must find out the kind of industries that need them and never think of themselves as useless.

“Even if they cannot get a job, why not look into other alternatives like turning their hobbies or passion into one, like baking?” said Fu.

Fu, a retired teacher, said the principal had wanted her to stay on. She, however, had other plans like wanting to do something new, like training teachers.

Being interviewed for StarMetro

She lamented that there was lack of government support to push the private sector into recruiting retirees, unlike Singapore which had a special portal and even job fairs held to employ retirees.

“There is also the Advantage! scheme that offers financial grants of up to S$400,000 to companies registered or incorporated in Singapore supporting initiatives that directly boost the recruitment, retention and re-employment of matured workers,” she said.

Click here for the full article.

Related articles:

AN OPTION FOR OLDER WORKERS: TO BE RETIRED OR REHIRED

PREPARING TO REHIRE OLDER STAFF