WORKING LONGER:OBSTACLES TO POSTPONING RETIREMENT

Many Baby Boomers want to work longer, and that's a much needed economic gain for the Social Security and Medicare systems, household savings and tax collections. Unfortunately, according to a New York Times article, "For a Good Retirement, Find Work. Good Luck." by Steve Lohr (June 22, 2008), the job market is not so sunny for older workers.

The obstacles to more opportunities are both erroneous attitudes and practical economics. Several studies show that concerns that older workers are less productive, adaptable and capable of learning new skills are inaccurate or overstated. Health and fitness conditions are estimated to have added many years to older workers lives. What are real concerns to employers are benefits costs and a lack of financial incentives for employers to look beyond them. Here are some suggestions for providing incentives cited in the article:

*  Create a category of "paid up workers" who have worked for, say, 40 years. Neither they nor their employers would have to to contribute further to Social Security and Medicare.

*  To combat rising health care expenses, return to the pre-1983 policy of having Medicare be the primary payer of health care costs for people over 65, whether they are working or not. This takes the burden from the employer.

*  Increase the minimum age at which people can receive Social Security benefits by a few years (except for the disabled or financially needy). Waiting increases the amount in the monthly payments when people do get them.

Given the demographics of the work force, skilled and experienced labor needs and the fragility of the entitlements and benefits systems, something has to change. The suggestions above may not be the full solution, but a combination of types of stakeholders needs to agree on and implement change sooner rather than later.

Phyllis Weiss Haserot    www.pdcounsel.com