Senior Spotlight: 65+ Labor Force Doubled Since 1980’s

It’s often been said that with age comes wisdom; new research now proves that competency is leading corporate America. Economists spent years predicting a ‘silver tsunami’, the idea that Baby Boomers would age out of the workforce in one large wave that would rock the job market. But the latest data shows that the historic norms of retirement and age are rapidly changing. The result is an unexpected path to leadership & succession. 

The Data 

A sampling of S&P 500 data analyzed by Cowen Partners (a research firm) revealed that 42% of sitting CEOs are aged 60 and older. Cowen Partners also reports that the top two seats of CEO and CFO are hitting the retirement window at the same time in over 1/3 of corporations. Companies such as Boeing, Verizon & Cracker Barrel have hired older and previously retired chief executives “to guide them out of corporate messes” according to the New York Post. The publication also reported that labor force participation for those 65 and older just hit 19.2%, up 12% from the year 2000 and 10% in the 1980s. 

The Potential Impact

Entrepreneur magazine reports that this situation “is setting up a real succession problem. Building an executive ready for the top job takes 15 to 20 years, and companies that keep leaning on aging leadership are burning through that runway. When the transition finally comes... Millennials may not be ready.” Another reality is that by the time Boomers leave the C-suite positions, Gen X (born between 1965 and 1980) may not have the opportunity for a leadership role as they will be at retirement age themselves. That goes back to the theory that millennials might move faster up in the workforce, but so will the risks that come with rapid succession. 

The Mindset 

As we previously revealed on our blog, Boomers enjoy staying in the workforce longer to retain a sense of purpose and to sustain income longer. The New York Post also points out the strong connection between Boomer job role and identity, as well the belief that it’s not healthy to stop working – and even the fear that is if they stop working, their body and mind will deteriorate. 

Regardless of if a silver tsunami ever comes to light or what older leadership means for corporate succession, age is really just a number. But more important than that number is how you feel, what you want, where you wish to put your time and energy – and how all of that impacts your health. Never take your health for granted, and don’t forget to prioritize that as you define your second chapter purpose and plan. 

Resources Used: Baby Boomers Refuse to Retire: ‘If I Stop Moving, I Might Die’ — Here’s Why That’s a Problem ; Baby Boomer executives aren’t leaving the C-suites – and that’s setting up a crisis for corporate America

Cheers to living longer & living better,

Bobbi 

Bobbi Decker
DRE#00607999

Broker Associate
650.346.5352 cell
650.577.3127 efax
www.bobbidecker.com

NAR Instructor….“Designations Create Distinctions”
CIPS, SRS, ABR, CRS, SRES, GRI, CLHMS, REI, AHWD, RSPS, MSLG

Bobbi Decker & Associates fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. For more information, please visit: http://portal.hud.gov/