Project

PSY3540_Week 3 L1 Supplemental

Retirement

The process of retirement is complex. It is much more than a person leaving his or her job. It constitutes

a major change in an individual’s life. After retirement, a person is no longer engaged in a particular

career, nor looking to make career changes. Understanding the decision-making process; when and why

an individual retires; the age at which this occurs; and the impact it has on the individual, his or her

family, and even the organizations where he or she worked is an important part of understanding the

complexities of older adults.

It has been assumed that there will be an upheaval in the workforce as a result of large-scale retirement

of baby boomers. This assumption may not necessarily be accurate. Voluntary retirement is becoming

less and less of an option for many workers, and as result, more workers are either staying in their

present jobs or changing or modifying their careers to meet their needs.

Retirement has some significant positive and negative impacts, depending on the person, situation, and

circumstances regarding retirement. Perhaps you’ve seen a television commercial that advertises

financial planning services or some sort of retirement account. This reflects a common concern for older

adults. After retirement, most people have to live off of their savings and Social Security. One of the

primary concerns of those who are facing retirement is saving enough money to meet the financial

needs of retirement.

Why does a person decide to retire or keep working? There are many factors that need to be

considered. One of them is the type of career. It is logical to assume that the physical nature of a job

may impact the longevity of the time on the job. An example is professional football. Due to the extreme

physical nature of the sport, it is likely that football players would retire earlier than what would

normally be considered retirement age. On the other hand, someone in the U.S. Congress could

continue working far beyond what would be considered retirement age. The average age of a member

of the U.S. House of Representatives is 57 years, and the average age of a Senator is 63 years (Manning,

2010).

Other factors to consider include a person’s level within an organization and the type of retirement plan

that’s available. For a worker with a 401(k) retirement account, it may be worth staying in a job for an

additional 2–3 years. During that time, the funds in the 401(k) would earn more interest and the worker

would continue to pay into the account. Furthermore, if the worker were eligible for some sort of

promotion, then that individual could possibly retire at a higher rate of pay.

References:

Manning, J. (2010). Membership of the 111th Congress: A profile. Washington, D.C.: Congressional

Research Service.