Reconsidering My Options

Optimum Strategies for Creativity and Longevity

By Sing Lin, Ph.D., Member of National Council of Chinese Institute of Engineers – USA/Greater New York Chapter, and Member of Board of Director of National Taiwan University Alumni Association – Greater New York - March 2002

Longevity vs. Retirement Age

The pension funds in many large corporations ( e.g., Boeing, Lockheed Martin, AT&T, Lucent Technologies, etc.) have been "Over Funded" because many "late retirees" who keep-on working into their old age and retire late after the age of 65 tend to die within two years after their retirements. In other words, many of these late retirees do not live long enough to collect all their fair shares of pension money such that they leave a lot of extra-unused money in the pension funds resulting in the over-funded pension funds.

Dr. Ephrem (Siao Chung) Cheng provided the important results in the following Table 1 and the associated chart from an actuarial study of life span vs. age at retirement. The study was based on the number of pension checks sent to retirees of Boeing Aerospace.

Table 1 – Actuarial Study of life span vs. age at retirement.

Age at Retirement       Average Age At Death   

49.9                                             86     

51.2                                             85.3   

52.5                                             84.6   

53.8                                             83.9   

55.1                                             83.2   

56.4                                             82.5   

57.2                                             81.4   

58.3                                             80     

59.2                                             78.5   

60.1                                             76.8   

61                                                74.5   

62.1                                             71.8   

63.1                                             69.3   

64.1                                             67.9   

65.2                                             66.8   

Table 1 and the chart indicate that for people retired at the age of 50, their average life span is 86; whereas for people retired at the age of 65, their average life span is only 66.8. An important conclusion from this study is that for every year one works beyond age 55, one loses 2 years of life span on average.

The Boeing experience is that employees retiring at age of 65 receive pension checks for only 18 months, on average, prior to death. Similarly, the Lockheed experience is that employees retiring at age of 65 receive pension checks for only 17 months, on average, prior to death. Dr. David T. Chai indicated that the Bell Labs experience is similar to those of Boeing and Lockheed based on the casual observation from the Newsletters of Bell Lab retirees. A retiree from Ford Motor told Dr. Paul Tien-Lin Ho that the experience from Ford Motor is also similar to those in Boeing and Lockheed.

The statistics shown in the Pre-Retirement Seminar in Telcordia (Bellcore) indicates that the average age that Telcordia (Bellcore) employee's start retirement is 57. Therefore, people who retire at the age of 65 or older are minority as compared to the number of early retirees.

The hard-working late retirees probably put too much stress on their aging body-and-mind such that they are so stressed out to develop various serious health problems that forced them to quit and retire. With such long-term stress-induced serious health problems, they die within two years after they quit and retire.

On the other hand, people who take early retirements at the age of 55 tend to live long and well into their 80s and beyond. These earlier retirees probably are either wealthier or more able to plan and manage their various aspects of their life, health and career well such that they can afford to retire early and comfortably.

These early retirees are not really idling after their early retirements to get old. They still continue doing some work. But they do the work on the part-time basis at a more leisure pace so that they do not get too stressed out. Furthermore, they have the luxury to pick and chose the types of part-time work of real interest to them so that they can enjoy and love doing that "fun" work at a more leisure pace.

The late retirees are small in number, tend to die quickly after retirement and disappear from the population of old people beyond the age of 70. Late retirees, therefore, have very little weight on the statistical average life expectancy of the population of "old people" dominated by the early retirees.

Several years ago, a Japanese friend of mine told me that most Japanese people retire at the age of 60 or earlier. This may be one of the factors contributing to the long average life span of Japanese people.

Changing Trend of US Pension Plans

The traditional pension plans of many major US companies used to place a lot of value on the experience of long-term older employees by increasing the pension money rapidly and nonlinearly for long-term employees as their age + service year increases beyond the threshold of the rule of 75. Most long-term employees cross this critical threshold at about the age of 55. On the other hand, the early retirees incur very heavy penalty in pension and in other associated retiree benefits (e.g., employer paid medical insurance, employer paid life insurance, death benefits for family, etc.) when they retire before they meet the rule of 75.

However, in recent few years, many large US corporations are switching from their traditional retirement pension plans to the new portable Cash Balance Plans. The new portable cash balance plans are much more favorable to the younger employees but are very unfavorable to the long-term older employees. Some older long-term employees found that when their employers switched from the traditional pension plans to the cash balance plan, their pensions were reduced by 30% to 50%.

One of the implications of this trend towards the new cash balance plan is that the US corporations are now placing more value on the higher creativity and adaptability of younger employees and less value on the experience of the older employees. This is consistent with the accelerating pace of innovations and technology advances. The creative and dynamic younger employees are better positioned, than the older employees do, to keep up with the faster pace of technology advances.

Conclusion and Recommendations

The most precious, creative and innovative period in your life is the 10-year period around the age of 32. Plan your career path to use this precious 10-year period wisely and effectively to produce your greatest achievements in your life.

The pace of innovations and technology advances is getting faster and faster and is forcing everybody to compete fiercely at the Internet speed on the information super-highways. The highly productive and highly efficient workplace in USA is a pressure-cooker and a high-speed battleground for highly creative and dynamic young people to compete and to flourish.

However, when you get older, you should plan your career path and financial matter so that you can retire comfortably at the age of 55 or earlier to enjoy your long, happy and leisure retirement life into your golden age of 80s and beyond. In retirement, you can still enjoy some fun work of great interest to you and of great values to the society and the community, but at a part-time leisure pace on your own term.

On the other hand, if you are not able to get out of the pressure-cooker or the high-speed battleground at the age of 55 and "have" to keep on working very hard until the age of 65 or older before your retirement, then you probably will die within 18 months of retirement. By working very hard in the pressure cooker for 10 more years beyond the age of 55, you give up at least 20 years of your life span on average

 

No Coin to Toss

Back when we needed to decide who-gets-what, we didn't need a judge. We didn't have to rush back into the house to get a coin. There was no need to draw lots. We just settled it on the spot with hand signals (again). I mean, symbols.

Open hand = Water -- wins over stone because stone sinks, loses to cup because cup can scoop the water

Cupped hand = Cup (porcelain) --wins over water but loses to stone because the stone can break it

Fist = Stone -- wins over cup but loses to water.

We kept our hands behind our backs and say in unison, "one - two, som!" We probably had some English influence there. Kids down south said, "or - pek, som!" ('or - pek' = black - white). The idea is to show your hands at the same time. It was a one to one battle. The winner took on the next kid, the loser dropped out.

It was our version of 'paper - scissors - stone'.

Simple times, simple solutions.

And the days seemed longer.

Now that we have reduced the size of the world, dreamed up complicated formulae and invented problem-solving methods and data-processing systems, but we're having trouble finding solutions to some of the simplest problems.

And we find that each day seems to slip by us without our realizing it's gone.

And we wonder

 

We Are Sold...

I need some gripe water, but I'm too old for Woodwards…  This is my griping day.  Let me just wallow in it.

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Continental takes over Siemens VDO

Upon approval by the Siemens Supervisory Board, the Siemens Corporate Executive Committee has decided to sell Siemens VDO Automotive AG to Continental AG. Prior to this decision, several alternative offers had been intensively reviewed as numerous companies and investors had signaled their high interest in the takeover of Siemens’ successful automotive supplier group immediately after the official announcement of Siemens VDO’s planned IPO.

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No more Siemens' name on our cards after this.  Pity, we just got used to Siemen's style…

Well, to us in the rank and file, what's the difference?  We are in the 'damned if you do - damned if you don't' category.  No big deal.  But for those who get paid in millions whether they do or they don't, of course, it's a whole different story. 

Heck, maybe now we have to deal with new policies, new slogans, another set of consultants, who knows what's next?  How about some VSS?  These new guys deal in tires and brake systems.  That's what I learned.  Maybe we get discounts for new tires?  Big deal.  My tires are still new.  Brakes also new.  And the longest I intend to stay around…nah… I don't want to discuss that anymore.

I feel tired…

Meanwhile, we've just been introduced new paperwork for process equipment buyoff procedures.  The kind that will ensure those equipments will never get approved even after 5 years of running mass production.  I can say that because experience tells me there is no perfection in any new production line.  But those who draft the checklist have to go by the rules and list all the details.  Those itsy-bitsy things which make it impossible for the equipment fabricators to fulfill in one go.  We don't have R&D, remember?

You even have to keep pushing for basic improvements, not to mention foolproof systems.  One work-order can take up to two years to fulfil.  By then some products are ready to phase out.  Hence, the saying, 'If you delay it long enough, you don't have to do it'.  Everyone's over-loaded except those who dream up new procedures.  Bah!

Gripe gripe gripe… I need a shhtraight shhhot.  Without ice.

A Flat On The Myvi

Gee...this happened to be the second time I suffer a flat tire early in the morning.  Thought I noticed a tendency for the car to veer slightly to the left while on the road home last night, but I forgot about it when I arrived.  That's normal.  Lucky thing, I noticed it before I backed it out of the porch this morning.

So, what did I do?  I switched on the lights in the car porch and got out my jack.  Then I realized I had to install the spare into the rear wheel first before I transfer the rear tire to the front.  The flat was on the front left.  The spare for the Myvi is made smaller to fit into the bottom of the boot.  That kitchy-pie thing is only suitable for the rear wheel because of its smaller width and higher inflation pressure.  Fixing it on the front wheel would make driving at normal speeds dangerous.  That's what the Myvi manual says.  And that means a double job, and also double the time to fix it.  And normal speed means at least 110kph on the highway.  I wasn't about to take that risk.  Besides, two other lives are involved.

The last time I had a flat tire on the Iswara, I changed it in five minutes.  That was my personal record.  But this one looked like it might take a little too long.  And it's almost our 'departure' time of 7.00am.  Meanwhile, my carpool gang had just arrived, so in order not to be late for work, I went for the 2^nd option.  Get a replacement driver.  Postpone solving the problem till after work.

If there's another good thing about our carpooling, this is it.  This is on top of the RM300 each of us has saved every month since 1995 (we had 4 partners then).  Less a few cars on the road, less 13 liters of fossil fuel being burnt daily and 2 guys relaxing with the non-stop music while the driver for the day tackles the crazy traffic (especially Monday mornings & Friday evenings).

Try carpooling, folks.

My word, I sound like the gomen network TV.  LOL.

Laziness Has No Teacher

A young man wanted to learn the art of laziness.  He asked around the country and was finally told that there was one master living on a hill, who could teach him that 'skill'.  So he set forth to go up the hill.  By the time he got to the little hut at the top of the hill where the teacher lived, it was almost sunset. 

The teacher said to him, If you want some food to eat, I have only some leftovers from lunch.  You'll have to prepare your own dinner.

The young man said, It's fine.  I'm hungry and will eat anything, even left-overs.  He proceeded to eat some of the teacher's food.

The teacher then lighted a lamp for the night.  They sat talking after dinner and the teacher said, since it's already night, there's nothing we can do for today.  We'll start your lessons tomorrow.

Teacher went to lay down on his bed.  He told the young man to make his own bed out of some dried grass and old clothes. 

The young man said, It doesn't matter.  I can sleep next to you on your bed.  I only take up little space.  He went to lie down on the bed next to the teacher.

The teacher said, Alright, but please put out the lamp before you go to sleep.

The young man did not bother to get up from his reclining position.  He reached for his slipper and threw it at the lamp, knocking it out. 

A moment later the teacher said to the young man, Young man, you can go home as soon as the sun rises, tomorrow.  There is nothing I can teach you.  You are already lazier than me!!!

If you decide this is a joke, you're probably right.....

Divert Your Course, Please...

If you think MIGHT IS RIGHT, think again….


This has nothing to do with US bashing.  It's just a moral lesson taken from another forwarded email.  A classic situation in which someone who is so used to flexing muscles from a position of power, and the intimidation of lesser mortals who stand in his way is a matter of routine, he forgets to look at an even bigger picture than the one in which he exists.

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The following is the transcript of an actual radio conversation in October 1995 between a U.S. Navy ship and the British authorities off the Scottish North coast. The transcript was released by the MoD on the 10/10/95.

BRITISH:        Please divert your course 15 degrees to the South to avoid collision.


U.S. NAVY:    Recommend you divert YOUR course 15 degrees to the North to avoid a collision.


BRITISH:        Negative.  You will have to divert your course 15 degrees to the South to avoid a collision.


U.S. NAVY:    This is the Captain of U.S. Navy Ship, I say again, divert YOUR course.


BRITISH:        Negative, I say again, you will have to divert your course.


U.S. NAVY:    THIS IS THE CAPTAIN OF THE AIRCRAFT CARRIER USS LINCOLN, THE SECOND LARGEST SHIP IN THE UNITED STATES ATLANTIC FLEET, WE ARE ACCOMPANIED BY THREE DESTROYERS, THREE CRUISERS AND NUMEROUS SUPPORT VESSELS, DEMAND THAT YOU CHANGE YOUR COURSE 15 DEGREES NORTH, THAT'S 15 DEGREES NORTH OR COUNTER MEASURES WILL BE UNDERTAKEN TO ENSURE THE SAFETY OF THIS SHIP.

BRITISH:        THIS IS A LIGHTHOUSE….(four-letter words deleted)

If You Don't Want to Die.

 

They're opening up the old can of worms again. It's the one about poisons in plastic containers. Someone asked, Why do you still use recycled water bottles? You're not afraid the chemicals in those bottles may kill you? I said maybe the guy who warned everyone about the use of recyled plastic containers has some interests in the tupperware business. I say this because I remember when those PET mineral water bottles hit the market, they all went back to their day jobs. No more invitations to tupperware parties. But after the forwarded email warning about DEHA in those water bottles first hit the internet some years ago, tupperware dealers came back to life. They started partying again.

Well, let me tell you this. If you don't want to die, stop smoking. That's the obvious one. Yet they still puff away billions of dollars worth in tobacco around the world each year. If you don't want to die, stop breathing…. Maybe.

If you don't want to die, then don't eat vegetables. You know how much chemicals they pour into the ground as fertilisers? You know how much pesticides they pump into green leafy vegetables to keep them from being devoured by worms and bugs so that they come to your dining table fresh, whole and perfect without holes in them?

If you don't want to die, don’t eat fish. You know how much chemicals they pour into the rivers that flow into the sea? If you don't want to die, don't eat meat. Find out what kind of stuff they feed to farm animals nowadays, especially with the 'factory farming' practices. You'll decide to stop eating them if you look deep enough.

If you don't want to die, you can't eat anything. You'll die sooner.