Today’s guest post comes from my fellow HR Blogger, Mike Haberman of Omega HR Solutions. This is definitely a hot topic, as we have so many Boomers in the workforce. I love this guy Mike. Off to the races……
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 Survey which 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.
No money to retire
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?
Not ready to retire
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 the key to retaining your employees. You also may want to offer education to your employees on the value of that retirement. Many employees are very uneducated about what they have or will have at retirement. For many that is a real eye-opener.
About the Author:
Michael (Mike) D. Haberman, SPHR is a consultant, writer, speaker and co-founder of Omega HR Solutions, Inc. He has been in the field of HR for 30 years as both practitioner and consultant. He specializes in compliance issues for his small business clients but happily discusses many HR subjects. He is the author of the blog HR Observations which can be found at http://www.omegahrsolutions.com and he has been writing blog posts on a full spectrum of HR topics for over six years. He is an active user of Twitter and can be found at @mikehaberman or @HRComplianceGuy. He has been an instructor in HR for 14 years and has helped many people achieve their PHR or SPHR during that time.