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Many boomer retirees get restless, seek other jobs

Vonnie Kennealy could spend every morning sleeping in or hitting golf balls. Instead, she battles traffic several times a month from her home in Sun Lakes to reach a part-time job in Tempe by 7:30 a.m. It’s not exactly the easiest way to spend retirement, but she welcomes the opportunity.

“I did the golf thing and the shopping thing and got totally bored with it,” said Kennealy, who spent eight years fully retired before returning to work.

“All of a sudden, you have all this free time in retirement and find you need something to do for satisfaction.”
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Kennealy is one of 150 seniors who spend seven to 35 hours a month working at a Wells Fargo facility in Tempe processing statements for mailing to checking-account customers. Managers laud the workers - nicknamed “Silver Bullets” - for their enthusiasm, trustworthiness and efficiency. So many seniors appreciate the program that Wells Fargo has no current Silver Bullet openings.

“They like the social interaction, and they like feeling useful and putting their skills to work,” said Miriam Adair-Johnson, who manages the program. “Most aren’t doing it for the money.”

For the hordes of baby boomers nearing retirement age, people like Kennealy and programs like Wells Fargo’s provide a blueprint for not exiting the workforce entirely.

Many pre-retirees will find they have no choice but to keep employed. A lot of boomers haven’t socked away all that much money, yet members of this active generation aren’t planning to stop traveling, golfing or riding Harleys when they hit 62, 65 or other milestones.

Social Security by itself won’t finance much of an active lifestyle: Typical yearly retirement benefit for Arizonans is just $11,256.

Also, many boomers won’t draw generous workplace pensions, unlike their parents, because employers have capped these programs because of high costs. Nor have many boomers filled the gap with big savings of their own. Participants in 401(k) retirement plans count a median balance of just $19,000.

Yet life expectancies and health costs continue to escalate, creating a potential storm of unreadiness for millions.

Meanwhile, many employers will actively seek workers. With the economy running close to the 4 percent jobless rate that some experts consider full employment, labor shortages could develop in such areas as health care, business services, information technology, finance and the leisure industry.

Against the need to earn more money, early retirees should weigh the impact of Social Security-related penalties. Two key issues arise:

• Work income could subject part of your Social Security benefits to tax, even if you’re above full retirement age. If job income plus Social Security and other income exceeds a base amount - $25,000 for singles and $34,000 for married couples filing jointly - taxes could apply on some benefits. About one-third of recipients pay taxes on Social Security benefits.

(For boomers born before 1955, full retirement age is defined as 66. It rises by two months for each birth year after that until reaching 67 for boomers born in 1960 or later.)

• If you start taking Social Security before full retirement age, you could lose $1 in benefits for every $2 in job earnings above a yearly limit.

The decision to keep working in retirement hinges on more than finances.

“I’m working primarily for self-esteem,” said Joanne Alexander, a Silver Bullet. “It makes you feel like you’re still worth something.”