The workforce in the United States is changing. Some long-standing professions are becoming obsolete, there are fewer manufacturing jobs,1 and some companies are moving their headquarters overseas for tax reasons.2 Then there is the increasing phenomenon of automation and robotics replacing jobs.
It’s interesting to note, however, that the job market is not fixed. It’s not as if people are being replaced by robots, but rather that the nature of work is changing and has different requirements. For instance, there is a steady transition from manufacturing to service industries. While a robot may be able to assemble products, it cannot develop software, health insurance policies or other intangible products and services that encompass so much of our income these days.3
As such, today’s job market offers unique opportunities for older workers. While some retirees need to work to supplement their income, others may simply get bored and want a new challenge. After all, retirement can go on for decades. That’s a long time for a career worker to be out of the workforce. By the same token, that’s a long time for savings to provide income. If you’re wondering how long your retirement income savings might last, come see us for an independent analysis. We can help assess your current financial situation to see whether it might be worthwhile to consider other retirement income strategies.
Another aspect of today’s changing job market is the growing shortage of skilled workers.4 When you think about it, this shortage creates an opportunity for retirees who want to go back into the workforce and are willing to learn new skills. According to the World Economic Forum’s 2016 “Future of Jobs” report, 33 percent of the essential skills that will be needed in the workforce in 2020 are not considered important today.5 This may create a good opportunity for people re-entering the workforce.
In fact, it’s because machinery is automating many previous jobs that some experts believe human creativity is the coveted skill of the future. It is the one thing that cannot be replicated by machinery, and thus holds more economic value.6 Pair creativity with experience and knowledge of specific markets and industries, and this is an area where older workers may truly thrive.
The best occupations for retirees tend to be in the white-collar sector and require experience, coupled with the advantages of maturity, patience and wisdom. Some of the top job options for older adults include consulting, local government positions, substitute teaching and tutoring.7
Content prepared by Kara Stefan Communications.
1 Heather Long. CNN Money. March 29, 2016. “U.S. has lost 5 million manufacturing jobs since 2000.” http://money.cnn.com/2016/03/29/news/economy/us-manufacturing-jobs/index.html. Accessed July 13, 2017.
2 The Economist. Aug. 17, 2015. “What’s driving American firms overseas.” https://www.economist.com/blogs/economist-explains/2015/08/economist-explains-9. Accessed July 13, 2017.
3 Alanna Petroff. CNN Tech. March 24, 2017. “U.S. workers face higher risk of being replaced by robots. Here’s why.” http://money.cnn.com/2017/03/24/technology/robots-jobs-us-workers-uk/index.html. Accessed July 13, 2017.
4 Reuters/CNBC. July 20, 2015. “Survey shows growing US shortage of skilled labor.” http://www.cnbc.com/2015/07/20/survey-shows-growing-us-shortage-of-skilled-labor.html. Accessed July 13, 2017.
5 Stephane Kasriel. World Economic Forum. April 25, 2017. “Yes, our working lives are going through massive change, but that doesn’t mean we’re heading for a jobless world.” https://www.weforum.org/agenda/2017/04/as-long-as-we-have-problems-to-solve-we-wont-run-out-of-jobs. Accessed July 5, 2017.
6 Itai Palti. World Economic Forum. April 19, 2017. “Could creativity drive the next industrial revolution?” https://www.weforum.org/agenda/2017/04/why-creativity-will-drive-the-next-industrial-revolution. Accessed July 5, 2017.
7 Jennifer Lawler. Bankrate.com. Feb. 26, 2016. “10 part-time jobs for retirees.” http://www.bankrate.com/retirement/10-part-time-jobs-for-retirees/#slide=3. Accessed July 5, 2017.
We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.
The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.
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