Why Your Organization Will Want to Help Boomers Develop Their Exit Plan (February 9, 2019)
The Bureau of Labor and Statistics projects that by 2024, 25% of the U.S. workforce will be at least 55 years old, and about a third of those workers will be near full retirement age. According to AARP, about 10,000 Baby Boomers (those born between 1946-1964) are reaching full retirement age each day. However, that number doesn’t mean Boomers are necessarily going to retire at full retirement age. In fact, according to a 2014 Transamerica Center for Retirement survey, 65% of boomers planned to work past sixty-five.
If you and your management team are unsure about how to deal with the significant workplace shift that is starting to take place because of the Boomer Generation, you are not alone. Fortunately, by working together with Boomers and their plans for retirement, everyone can benefit. Here are three ways your organization or HR department can do this: (1) Help Boomers plan financially for retirement, (2) Help Boomers visualize and plan for the nonfinancial aspects of retirement, and (3) Help Boomers consider possible transition plans.
Help Boomers Plan Financially for Retirement
Research suggests that one of the biggest concerns Boomers have about retirement is finances. Many Boomers are admittedly staying in the workplace longer because they are not financially ready to leave. Some lost a good chunk of their retirement savings during the recession, others didn’t save enough, and still others are now starting to realize how many more years they could live. For those who feel trapped financially, their workplace attitudes and overall productivity could be affected.
What can your organization do to help? Certainly, bringing in financial professionals who could talk with your employees about some potential ‘catch up’ strategies and other planning matters could be beneficial. Providing written or other resources about planning for Medicare and Social Security could also benefit your employees who are nearing retirement age.
Help Boomers Visualize and Plan for the Nonfinancial Aspects of Retirement
Because retirement could represent 20, 30, or even 40 more years of living, it is hard for many Boomers to imagine how they will fill their time. Even more important for many Boomers is how they will replace much of what they value in the workplace such as creative challenges, a sense of identity, a degree of structure, and positive workplace relationships.
Your organization could provide one-on-one counseling sessions with a retirement life coach, or your organization could provide workshops and / or appropriate planning materials. As a way to get started, check out the free retirement planning guide I have made available for you: https://boomerbestu.com/free-planning-guide/
Help Boomers Consider Possible Transition Plans
When Boomers leave, they will also take their experience and knowledge with them. Consider having some of these Boomers serve as mentors to younger employees for a period of time before they leave. Be open to discussing flexible arrangements and possibly part-time work for a period of time.
Using open communication and forward thinking, helping your Boomer employees prepare for retirement could be beneficial for all concerned.
BOOMER EMPLOYEES & RETIREMENT (January 31, 2019)
Boomers have a wealth of experience and insight, yet they are often stereotyped as being ‘too old’ or lacking tech savvy in the workplace. In should be no surprise that some research has suggested that nearly two-thirds of Boomers are not engaged in their work or are actively seeking other work.
When working with Boomers, it is also likely ageism is affecting you’re your bottom line in subtle ways. Sixty-five percent (65%) of Boomers believe they have experienced some form of ageism. If you do not address this problem, you will potentially limit the success of your organization or business.
Get Ready for an Employee Retirement Wave
In 2018, Willis Towers Watson, a leading global advisory and solutions company surveyed 143 large U.S. employers about retirement matters. A few interesting findings include:
- A majority (83%) of employees surveyed had a significant number of employees nearing retirement.
- Eighty-one percent (81%) believed managing when employees retired was an important business issue.
- Eighty percent (80%) believed older employees were very important to their organization’s success. Older workers have skills and talents that are not easy to replace. They also have organizational knowledge that newer employees will not have.
- When employees delay retirement, forty-nine percent (49%) were concerned that costs would increase (including benefits) and younger workers would be prevented from moving up in the organization.