Biopharma professionals are among those delaying retirement, with 52% expecting to leave the workforce later than originally planned, according to a BioSpace LinkedIn poll. A career coach and recruiter discuss why some are pushing out or moving up their exits.
Many U.S. workers, including biopharma professionals, are rethinking their retirement plans, based on a recent BioSpace LinkedIn poll and MyPerfectResume survey.
The BioSpace poll found that 63% of respondents have changed their minds on when they’ll stop working, with 52% planning to retire later and 11% earlier. The findings echo those from a MyPerfectResume survey of 1,000 U.S. workers that asked how people’s expected retirement age had changed over the past three years. That survey also showed that a significant percentage of respondents (48%) have adjusted their plans. In addition, as was the case with the BioSpace poll, a higher percentage of people now plan to retire later (35%) than earlier (13%).
Layoffs, finances among reasons plans change
As to what’s causing biopharma professionals to move their retirement plans, Melissa Lawrence, founder of Your Worthy Career, a career and leadership coaching firm for women in pharma and biotech, noted that whether they believe they have a path forward in their area of expertise can impact their decision. That self-evaluation could be necessary because they’re unhappy in their current role or were laid off, she told BioSpace in an emailed response. For example, Lawrence explained, someone let go at a later stage in their career who doesn’t want to go through the job search process or who has but hasn’t been successful may look to retire earlier.
One biopharma professional told BioSpace late last month that they will probably retire at age 60 instead of 65 because they can’t get a job.
“I don’t want to retire but I am not sure I have been given a choice,” they wrote in a survey comment.
I don’t want to retire but I am not sure I have been given a choice.
Another biopharma professional told BioSpace for a recent story about quitting job searches that a difficult job market led them to eventually take early retirement at age 50.
One factor that may be causing people in the biotech and pharma industries to retire later than originally desired is finances, according to Lawrence. She noted that equity impacts biopharma compensation, so market conditions can alter retirement plans.
“In my experience, vesting and bonus cycles significantly contribute to a person’s decision and timing to change their career,” Lawrence said.
Finances are more likely to drive retirement decisions among biopharma professionals not at the executive level, according to Leslie Loveless, CEO and managing partner of Slone Partners, a nationwide executive recruiting firm. People in those positions, she told BioSpace, may want to create a little more financial security before retiring.
In its survey of the broader U.S. workforce, MyPerfectResume found that 64% of respondents cited cost of living as a factor preventing them from exiting the workforce as early as they’d like. In addition, 51% said retiring before age 60 was unrealistic for someone with a typical full-time job, and 14% didn’t expect to retire fully. A Fidelity Investments study also noted people’s uncertainty and doubt about exiting the workforce. It found that nearly 1 in 3 survey respondents aren’t sure when they’ll retire, or if they’ll even retire at all.
When executives turn to fractional work vs. retirement
The job market, which has been less active lately, is influencing whether executives decide to retire earlier or opt for fractional roles on their way to retirement, according to Loveless. However, she said, the focus on employees returning to the office rather than working at home is an even more significant factor for leaders.
“When you get to a certain point in life, I think people say, ‘I’m not in a position anymore where I need to uproot my family, move across the country or disrupt what we have in our lives today for a full-time position,’” Loveless said.
Benevolent motives are another important factor in executives’ decisions about retirement, she noted.
“They want to save lives,” Loveless said. “They want to get a drug to market that is going to really reach patients and have that long-lasting impact on the patients and their families and just have really good outcomes.”
So, she added, when it comes to the question of retirement, part of what keeps people going is their desire to continue making an impact.
“I really do see it as less about the financial and more about just how people in our industry are wired, which I think is a really remarkable and admirable thing,” Loveless said.
