I read an interesting combination of articles. The first described the very poor outlook for older workers who have become the majority of the long term unemployed. The second was the results of a survey called the 13th Annual Transamerica Retirement Surveywhich showed that many workers don’t plan on retiring. So the result is that workers are opting to work longer, the issue is staying employed.
The first article, Sustained Unemployment Rises, shows that the ever increasing numbers of the long-term unemployed are older workers. Because they are exhausting any and all saving they will not be able to retire if and when they do become re-employed. Imagine the pain of being 57 years old and moving back into your parents home in order to be able to live?
The second article dealt with the retirement survey. Some of the results of that survey include:
- The 13th Annual Transamerica Survey found low levels of ‘retirement readiness’ among workers, and for many, saving enough to retire by age 65 may be unrealistic.
- 69 percent of workers agreed that they could work until age 65 and not save enough to meet their retirement needs.
- Most workers plan to either work past age 65 and/or work part-time in retirement.
- Few workers (20 percent) have a back-up plan if they are forced into retirement sooner than expected due to life’s unforeseen circumstances.
These two situations are adding up to be a societal disaster. I am part of that Baby Boom generation that did a poor job of saving for retirement. I have been making up for lost time but I know that without work that would be very difficult to do and without work what was saved would rapidly disappear.
One other result of that survey was that many workers would change jobs for a better retirement plan than they currently have. You may want to review what you are offering, it may become key to retaining your employees. You also may want to offer education to your employees on the value of that retirement.