The Upcoming Retirement Wave

What you might find interesting today:
The new face of retirement and the world of the older employee
Boomers and organizations = WIN-WIN
The aging workforce and working in retirement
09/28/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.

What you might find interesting today (continued):
Myths about older workers
Aging boomers and opportunity

Shameless Commerce Division
Retirement Intentions
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CareerCurve

How I start every program:
Please stand up.

Retirement Has Changed
Organizations will feel Baby Boomer Wave
Baby Boomer Wave is real, just not hit with full force, yet
The Baby Boomer Wave – a benefit, not just a problem

Baby Boomers and Organizations Both Win
Y ou need : talent, skill, savvy, integrity and reliability.
Boomers need : income, engagement, working with others, flexibility and feeling valued.

The World of the Older Employee
Not your father’s or mother’s retirement
“ 65 and out” with pension or Social Security
… and a life expectancy of a 2-5 years

So many things have changed, mostly:
Longevity
Illnesses associated with living longer
Health care
Social Security, pensions, 401ks
The need to work for money and activity

More than just golf, babysitting grand kids, and Adirondack chairs
Another 20, 30, even 40 years
Another stage of life

Unpredictability = fears and worry
Becoming ill with not enough $
The average out-of-pocket expense for retirees healthcare costs is $250,000 per person

. ..more than one-quarter of boomer households thought "hardly at all" about retirement and that financial literacy among boomers was "alarmingly low."
National Bureau of Economic Research quoted in Boomers Going Bust, By David Ignatius ,Thursday, May 7, 2009, The Washington Post .

Guaranteed retirement funds and healthcare are only part of the retirement package…and not for all

What do you know about our aging workforce?

What is a “Baby Boomer”?

What is a “Baby Boomer”?
Person born between the end of World War II and 1964.

How many Baby Boomers are there?
About 79 million!
(think of the brain power ……think of the buying power!)

How many Baby Boomers are there?

What is the average age of first retirement in the US?

What is the average age of first retirement in the US?
About 62, up from 58 a few years ago

What is the life expectancy in the US?

What is the life expectancy in the US?
US = 45 out of 195: ( CIA World Factbook )
Rank/Country/territory Life expectancy at birth (years)
Overall Male/Female World average 67.26
43 Bermuda ( UK ) 78.13
44 Saint Helena ( UK ) 78.09
45 United States 78.06 *
46 Cyprus 77.98
47 Denmark 77.96

Current US Life Expectancy
What does this mean?
Between 55 and 65 now, most likely live another 20 to 40 years
(There are 86,000 people in the US 100 years old, or older)

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What is the potential of the “retirement wave”

What is the potential “retirement wave”
7,918 people turn 60 each day. That is 330 every hour
U.S. Census Bureau

Some thoughts about the “retirement wave”
“ America is facing a demographic juggernaut," says Brent Green, a marketing consultant and author, in his ‘Boomers’ blog
One-third of the population will be over 50 by 2010. One in five will be over 65 by 2010

How many retirees continue to work (for income) in retirement?

29% in their late 60s, were still employed in 2006-Bureau of Labor Statistics

72% of retirees will work, in some capacity, after “retirement”

So then, what is retirement?

So then, what is retirement?
Once meant:
stop work
life of leisure
health declines
then you die

So then, what is retirement today?
Stop work at one place
Start work at another place
Or start a new career

What do Baby Boomers want in continued employment?

MONEY!!!
To makeup for their losses in investments
4.2 years to make up for losses
But, there is so much more…

Staying Ahead of the Curve 2003: The AARP Working in Retirement Study .
employee opinions are valued
take time off
a company that lets its older employees remain employed for as long as they wish to work

Feel engaged, part of something
Not old
Not be thought of as old
Renewed, rejuvenated
Active, growing
Sharp and alert
More free time

Most importantly to:
Feel that they matter!

Baby Boomers can contribute
But first, dump the stereotypes concerning older workers – that they…
Are anxious to leave,
have trouble learning new skills
will drive up costs, including health care

Baby Boomers can contribute to your organization
Day-to-day productivity
Mentoring
Competitive marketplace knowledge
Make up for a shortfall in talent…

Who will replace retirees if/when they leave?

09/28/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD. “ Everyday, 11,000 boomers turn 50. There are only 43 million Gen Xers to fill the boomers’ 152 million shoes.” - Beverly Kay and Joyce Cohen, T & D, April, 2008, p. 30

Myths of Older Workforce
Myth 1: Older workers cost more to keep
Reality :
Older workers often earn more than younger workers, BUT,
Evidence to show that older workers can be more productive than their younger counterparts ( Bob Skladany, AARP.org.)
Older workers have fewer absences, a stronger work ethic, and greater loyalty
A seasoned knowledge base is critical to success
Many older workers are open to less than full-time work

Myth 2: Health benefits for Baby Boomers are too costly
Reality:
Health insurance does cost more for older workers, BUT,
Differences in younger vs. older workers claims
are not huge
Older workers get single or two-person coverage rather than expensive family coverage
Some studies show that older workers are healthier on a day-to-day basis
There are alternatives, like HSAs, to traditional healthcare insurances that could be very attractive to older workers
I

Myth 3 . Retirement plan costs can be expensive
Realty :
Traditionally designed benefit plans increase as workers age, BUT
DB pension is disappearing.
DC plans such as 401(k) before less costly

When you look at the big picture, older workers:
Are equally or more productive than younger employees
Cost about the same
Have fewer absences
Have superior communication and customer relations skills
Are less likely to leave the job after a short time
Require lower training costs
The bottom line : Older workers are both profitable and productive.

If your organization does not want to or need to address baby boomer issues, at least consider this:
Three demographic factors are converging:
The population as a whole is aging,
Labor shortages are projected in a number of economic sectors, and
Many workers intend to continue working beyond traditional retirement age.

If your organization does want to or need to address baby boomer issues, at least consider this:

Programs and Plans for Baby Boomers at Work
Phased retirement
Knowledge transfer programs
Intergenerational communication programs
Training designed specifically for older workers
Active alumni groups- ambassadors

Self scheduling shifts
Flexible time
Compressed workweek
Job sharing
Extended time off
Consulting assignments

And, most importantly:
Wellness and fitness programs, not just for older workers, but for everyone

The Opportunities for Human Resources
Filling the Talent Pool with seasoned older workers
Non-retirement as a career choice
Talent and know-how that might walk out the door can be harnessed
And…
If I were your competition…

Response to Retirement Needs to Change
Assess what you have to work with
Decide where your organization is headed
Be open and creative
And be Daring …or at least try something new

Thank you!

The Upcoming Retirement Wave

by Ease@Work EAP on Sep 28, 2009

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The Upcoming Retirement Wave — Presentation Transcript