COVID-19 has been a “red pill” moment for American workers. It revealed our work culture. It made clear our entrapment in 24/7 engagement. It undid the notion that “you are what you do.”
Indeed, the COVID-19 red pill changed everything. Like the reality-revealing red pill in The Matrix, older workers looked at what they were doing, saw what it really was and decided to retire.
In droves.
According to a study published last fall by the St. Louis Federal Reserve Bank, the number of workers retiring swelled by an unexpected 2.4 million. That’s about as many people, of all ages, as live in Chicago.
Yes, Chicago, the third-largest city in America. Only New York and Los Angeles are larger. That 2.4 million is more than the population of Houston (2.3 million). It’s slightly less than the combined population of San Antonio (1.6 million) and Fort Worth (1 million). And it’s on par with the combined populations of Dallas (1.3 million) and Austin (1 million).
The question is, how could that happen? We live in a society that puts a huge value on work. It also subjects us to relentless warnings about not having enough money to retire.
In spite of that, 2.6 million more people than expected chose to retire.
The answer, I think, can be found in an examination of work and its rewards for most people. Simply stated, the rewards haven’t been there. According to the online data library at the St. Louis Federal Reserve Bank, worker productivity has risen 51% since the turn of the century. The wages of typical workers, adjusted for inflation, have risen 9.9%.
Not a whole lot of incentive there.
So everyone is working harder, with ever greater stress, while receiving only a fraction of the reward for that effort. It should not be surprising that workers are looking for the door.
If the pay for all workers rose only 9.9%, you can be sure the pay for older workers was more disappointing. Older workers are likely to have topped out in pay. Many consider themselves fortunate to get a cost-of-living increase, if anything.
Meanwhile, retirees on Social Security have been getting an assured cost-of-living increase every year. The increase comes without asking, without negotiation. And it starts to arrive, like clockwork, at the beginning of every year.
This makes retiring a pretty good alternative to working. Indeed, imagine if you got this job offer:
Apply Now: Work at Retirement Inc.!
Visit one of our recruiters today. Meet during Happy Hour at the bar of your choice. We make on-the-spot offers. Your new job at Retirement Inc. starts immediately.
Join us now for a great alternative to your current employer.
We offer:
- A zero-hour workweek
- Unlimited sick time and holidays
- Long lunch hours
- Guaranteed, automatic annual pay increases
- Complete job security
- Choose your own projects
- Free time to do the things you don’t have time for now
- Low-cost health insurance if you are 65 or older
- And no degree or résumé requirements!
Is that a winning job offer or what?
As an employee of Retirement Inc., I happily endorse it as a great place to, err, not work.
Another benefit of Retirement Inc. is that your living expenses will go down. You won’t have the cost of going to work, lunches at work or clothing for work. In addition to gaining the time spent at work, you’ll also gain the time getting to and from work.
That time, in turn, can “be put to work” doing things that will either save you money or be more fun than anything you can do at whatever you did before.
Many studies suggest, health care angst aside, that retirement brings a significant cost-of-living decrease. Beyond all the costs directly related to work, spending for food, entertainment, alcohol and tobacco all decline. Not to mention spending on pets.
And all that is without considering lower taxes due to not paying employment taxes, lower federal income taxes, real estate tax breaks, etc.
Seriously, what’s not to like?
With about 40 million Americans between age 55 and 64, we’re looking at 4 million workers taking a closer look at Retirement Inc. each year for the next decade.
