BC faculty research

In a recent study, Dean of A&S Joseph Quinn found that an increasing number of retirement-aged workers are opting to pursue temporary or part-time employment after stepping down from their career jobs.

Quinn, who is also a member of the economics department, followed the retirement patterns of a study group consisting of many workers over the age of 50.

According to the data, a majority of workers may now be choosing to continue working in so-called "bridge jobs" rather than leave the workforce directly after retirement.

The research shows that the new trend toward continued work after retirement began in the 1980s after a century-long decline in the average age of retirement.

Now this age has leveled out, and in some cases increased slightly.

"The whole retirement landscape has changed," said Quinn. "[Workers] are staying in their jobs longer, and this is going to become more and more important over time."

The study is able to correlate the increasing popularity of bridge jobs with the widespread changes in pension plans present in the '80s.

Dr. Michael Smyer, dean of the Graduate School of Arts and Sciences and co-director of the Center on Aging and Work, has also found this relation to be especially important.

"There has been a shift from shared risks to individual risks in regard to aging, resulting from a shift in the 1980s from defined-benefit to defined-contribution pension plans," said Smyer.

Defined-benefit pension plans guarantee that set benefits will be paid to employees upon retirement, while defined-contribution plans, such as the 401(k), require that employees invest their pension independently.

While these defined-contribution plans give employees more control over their retirement funds, they often can result in less-than-expected turnaround.

Both Quinn and Smyer said that insufficient savings upon retirement is one of the reasons that an individual may pursue a bridge job.

"Unfortunately, the workers at the lower end of the socioeconomic scale are often forced to continue work in order to support themselves," said Quinn.

Another reason, proposed by Quinn, that the decline of defined-benefit pensions coincided with an increase in bridge jobs was that these pensions encouraged retirement at a certain age.

"With defined-benefit pensions, there are strong incentives to leave the company and claim your benefits. It can be looked at as a work disincentive or a retirement incentive," said Quinn.

The new trend of continued employment after reaching retirement age is supported by the now popular defined-contribution plans that Quinn says are "age neutral by their very nature."

According to Smyer, many people continue working not out of necessity, but in an effort to contribute to society.

Quinn said that many enjoy their jobs and wish to continue working in the same field or a related one, a reason most common among those in higher paying jobs.

"The most interesting thing is that if you line [the data] up against the socioeconomic scale, you get a U-shape. There are the highest percentages of bridge workers at the upper and lower ends," he said.

Smyer went into further detail in describing the primary reasons why many retirement-aged people continue to work.

"There are three groups of older workers: those that have to work, those that want to work, and those that are a combination of the two," he said.

"Those that need to work do so for 'health and wealth,' those that want to work often want to continue to use their knowledge to be connected socially."

A suitable bridge job can be from a variety of fields according to Smyer, most important is individual expertise and preference.

"What older workers want are flexible work options - flexible in terms of time, place, and duties."

The rising employment of retirement-aged workers is beneficial to the companies hiring them as well, Smyer pointed out.

"Older workers tend to be more stable. … they bring loyalty and good work ethics," he said. "For many companies, hiring an older workforce can be part of their business strategy to reach out to older consumers as well."

If the pattern illustrated by Quinn's research continues, future generations may witness a vastly different approach to retirement.

Quinn asserts that increasing amounts of individuals will probably continue to work well beyond the expected age of retirement.

"Sixty-five is just not what it used to be."