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Hr Star The Upcoming Retirement Wave

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Dr. Dickson Dawson presented The Upcoming Retirement Wave: What HR Needs to Know at the 2009 Cleveland HR Star Conference. This presentation was sponsored by Ease@Work and Dr. Dawson is available for individualized retirement coaching for companies through the Ease@Work EAP.

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Hr Star The Upcoming Retirement Wave

  1. 1. The Upcoming Retirement Wave: What HR Needs to Know Presented by Dickson R. Dawson, PhD. Retirement Intentions and 09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  2. 2. What you might find interesting today: <ul><li>The new face of retirement and the world of the older employee </li></ul><ul><li>Boomers and organizations = WIN-WIN </li></ul><ul><li>The aging workforce and working in retirement </li></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  3. 3. What you might find interesting today (continued): <ul><li>Myths about older workers </li></ul><ul><li>Aging boomers and opportunity </li></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  4. 4. Shameless Commerce Division <ul><li>Retirement Intentions </li></ul><ul><li>[email_address] </li></ul><ul><li>CareerCurve </li></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  5. 5. How I start every program: <ul><li>Please stand up. </li></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  6. 6. Retirement Has Changed <ul><li>Organizations will feel Baby Boomer Wave </li></ul><ul><li>Baby Boomer Wave is real, just not hit with full force, yet </li></ul><ul><li>The Baby Boomer Wave – a benefit, not just a problem </li></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  7. 7. Baby Boomers and Organizations Both Win <ul><li>Y ou need : talent, skill, savvy, integrity and reliability. </li></ul><ul><li>Boomers need : income, engagement, working with others, flexibility and feeling valued. </li></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  8. 8. The World of the Older Employee <ul><ul><li>Not your father’s or mother’s retirement </li></ul></ul><ul><ul><li>“ 65 and out” with pension or Social Security </li></ul></ul><ul><ul><li>… and a life expectancy of a 2-5 years </li></ul></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  9. 9. The World of the Older Employee <ul><ul><li>So many things have changed, mostly: </li></ul></ul><ul><ul><ul><li>Longevity </li></ul></ul></ul><ul><ul><ul><li>Illnesses associated with living longer </li></ul></ul></ul><ul><ul><ul><li>Health care </li></ul></ul></ul><ul><ul><ul><li>Social Security, pensions, 401ks </li></ul></ul></ul><ul><ul><ul><li>The need to work for money and activity </li></ul></ul></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  10. 10. The World of the Older Employee <ul><ul><li>More than just golf, babysitting grand kids, and Adirondack chairs </li></ul></ul><ul><ul><li>Another 20, 30, even 40 years </li></ul></ul><ul><ul><li>Another stage of life </li></ul></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  11. 11. The World of the Older Employee <ul><ul><li>Unpredictability = fears and worry </li></ul></ul><ul><ul><li>Becoming ill with not enough $ </li></ul></ul><ul><ul><li>The average out-of-pocket expense for retirees healthcare costs is $250,000 per person </li></ul></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  12. 12. The World of the Older Employee <ul><ul><li>. ..more than one-quarter of boomer households thought &quot;hardly at all&quot; about retirement and that financial literacy among boomers was &quot;alarmingly low.&quot; </li></ul></ul><ul><ul><ul><ul><li>National Bureau of Economic Research quoted in Boomers Going Bust, By David Ignatius ,Thursday, May 7, 2009, The Washington Post . </li></ul></ul></ul></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  13. 13. The World of the Older Employee <ul><li>Guaranteed retirement funds and healthcare are only part of the retirement package…and not for all </li></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  14. 14. <ul><li>What do you know about our aging workforce? </li></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  15. 15. <ul><li>What is a “Baby Boomer”? </li></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  16. 16. <ul><li>What is a “Baby Boomer”? </li></ul><ul><ul><li>Person born between the end of World War II and 1964. </li></ul></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  17. 17. <ul><li>How many Baby Boomers are there? </li></ul><ul><ul><ul><li>About 79 million! </li></ul></ul></ul><ul><ul><ul><li>(think of the brain power ……think of the buying power!) </li></ul></ul></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  18. 18. <ul><li>How many Baby Boomers are there? </li></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  19. 19. <ul><li>What is the average age of first retirement in the US? </li></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  20. 20. <ul><li>What is the average age of first retirement in the US? </li></ul><ul><ul><li>About 62, up from 58 a few years ago </li></ul></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  21. 21. <ul><ul><ul><li>What is the life expectancy in the US? </li></ul></ul></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  22. 22. <ul><li>What is the life expectancy in the US? </li></ul><ul><ul><li>US = 45 out of 195: ( CIA World Factbook ) </li></ul></ul><ul><ul><ul><li>Rank/Country/territory   Life expectancy at birth (years)   </li></ul></ul></ul><ul><ul><ul><li>Overall Male/Female World average 67.26 </li></ul></ul></ul><ul><ul><ul><ul><li>43 Bermuda (   UK ) 78.13 </li></ul></ul></ul></ul><ul><ul><ul><ul><li>44 Saint Helena (   UK ) 78.09 </li></ul></ul></ul></ul><ul><ul><ul><ul><li>45 United States 78.06 * </li></ul></ul></ul></ul><ul><ul><ul><ul><li>46 Cyprus 77.98 </li></ul></ul></ul></ul><ul><ul><ul><ul><li>47 Denmark 77.96 </li></ul></ul></ul></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  23. 23. 09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD. Indicator 14 – Life Expectancy
  24. 24. Current US Life Expectancy <ul><li>What does this mean? </li></ul><ul><ul><li>Between 55 and 65 now, most likely live another 20 to 40 years </li></ul></ul><ul><ul><li>(There are 86,000 people in the US 100 years old, or older) </li></ul></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  25. 25. <ul><li>s) </li></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  26. 26. Did you know: Retirement plans originally set up for retirees that would not live past 65 ! 09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  27. 27. <ul><li>What is the potential of the “retirement wave” </li></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  28. 28. <ul><li>What is the potential “retirement wave” </li></ul><ul><ul><ul><li>7,918 people turn 60 each day. That is 330 every hour </li></ul></ul></ul><ul><ul><ul><ul><li>U.S. Census Bureau </li></ul></ul></ul></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  29. 29. <ul><li>Some thoughts about the “retirement wave” </li></ul><ul><ul><ul><li>“ America is facing a demographic juggernaut,&quot; says Brent Green, a marketing consultant and author, in his ‘Boomers’ blog </li></ul></ul></ul><ul><ul><ul><li>One-third of the population will be over 50 by 2010. One in five will be over 65 by 2010 </li></ul></ul></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  30. 30. <ul><li>How many retirees continue to work (for income) in retirement? </li></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  31. 31. <ul><li>How many retirees continue to work (for income) in retirement? </li></ul><ul><ul><ul><li>29% in their late 60s, were still employed in 2006-Bureau of Labor Statistics </li></ul></ul></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  32. 32. <ul><li>How many retirees continue to work (for income) in retirement? </li></ul><ul><ul><ul><li>72% of retirees will work, in some capacity, after “retirement” </li></ul></ul></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  33. 33. <ul><li>So then, what is retirement? </li></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  34. 34. <ul><li>So then, what is retirement? </li></ul><ul><ul><li>Once meant: </li></ul></ul><ul><ul><ul><li>stop work </li></ul></ul></ul><ul><ul><ul><li>life of leisure </li></ul></ul></ul><ul><ul><ul><li>health declines </li></ul></ul></ul><ul><ul><ul><li>then you die </li></ul></ul></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  35. 35. <ul><li>So then, what is retirement today? </li></ul><ul><ul><li>Stop work at one place </li></ul></ul><ul><ul><li>Start work at another place </li></ul></ul><ul><ul><li>Or start a new career </li></ul></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  36. 36. <ul><li>What do Baby Boomers want in continued employment? </li></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  37. 37. <ul><li>What do Baby Boomers want in continued employment? </li></ul><ul><li>MONEY!!! </li></ul><ul><li>To makeup for their losses in investments </li></ul><ul><ul><ul><li>4.2 years to make up for losses </li></ul></ul></ul><ul><ul><ul><li>But, there is so much more… </li></ul></ul></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  38. 38. Staying Ahead of the Curve 2003: The AARP Working in Retirement Study . <ul><li>What do Baby Boomers want in continued employment? </li></ul><ul><ul><ul><li>employee opinions are valued </li></ul></ul></ul><ul><ul><ul><li>take time off </li></ul></ul></ul><ul><ul><ul><li>a company that lets its older employees remain employed for as long as they wish to work </li></ul></ul></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  39. 39. Staying Ahead of the Curve 2003: The AARP Working in Retirement Study . <ul><li>What do Baby Boomers want in continued employment? </li></ul><ul><ul><li>Feel engaged, part of something </li></ul></ul><ul><ul><li>Not old </li></ul></ul><ul><ul><li>Not be thought of as old </li></ul></ul><ul><ul><li>Renewed, rejuvenated </li></ul></ul><ul><ul><li>Active, growing </li></ul></ul><ul><ul><li>Sharp and alert </li></ul></ul><ul><ul><li>More free time </li></ul></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  40. 40. Staying Ahead of the Curve 2003: The AARP Working in Retirement Study . <ul><li>Most importantly to: </li></ul><ul><ul><li>Feel that they matter! </li></ul></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  41. 41. <ul><li>Baby Boomers can contribute </li></ul><ul><ul><li>But first, dump the stereotypes concerning older workers – that they… </li></ul></ul><ul><ul><ul><li>Are anxious to leave, </li></ul></ul></ul><ul><ul><ul><li>have trouble learning new skills </li></ul></ul></ul><ul><ul><ul><li>will drive up costs, including health care </li></ul></ul></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  42. 42. <ul><li>Baby Boomers can contribute to your organization </li></ul><ul><ul><li>Day-to-day productivity </li></ul></ul><ul><ul><li>Mentoring </li></ul></ul><ul><ul><li>Competitive marketplace knowledge </li></ul></ul><ul><ul><li>Make up for a shortfall in talent… </li></ul></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  43. 43. <ul><ul><ul><li>Who will replace retirees if/when they leave? </li></ul></ul></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  44. 44. 09/11/09 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
  45. 45. Myths of Older Workforce <ul><li>Myth 1: Older workers cost more to keep </li></ul><ul><li>Reality : </li></ul><ul><ul><li>Older workers often earn more than younger workers, BUT, </li></ul></ul><ul><ul><ul><li>Evidence to show that older workers can be more productive than their younger counterparts ( Bob Skladany, AARP.org.) </li></ul></ul></ul><ul><ul><ul><li>Older workers have fewer absences, a stronger work ethic, and greater loyalty </li></ul></ul></ul><ul><ul><ul><li>A seasoned knowledge base is critical to success </li></ul></ul></ul><ul><ul><ul><li>Many older workers are open to less than full-time work </li></ul></ul></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  46. 46. Myths of Older Workforce <ul><li>Myth 2: Health benefits for Baby Boomers are too costly </li></ul><ul><li>Reality: </li></ul><ul><ul><li>Health insurance does cost more for older workers, BUT, </li></ul></ul><ul><ul><ul><li>Differences in younger vs. older workers claims </li></ul></ul></ul><ul><ul><ul><li>are not huge </li></ul></ul></ul><ul><ul><ul><li>Older workers get single or two-person coverage rather than expensive family coverage </li></ul></ul></ul><ul><ul><ul><li>Some studies show that older workers are healthier on a day-to-day basis </li></ul></ul></ul><ul><ul><ul><li>There are alternatives, like HSAs, to traditional healthcare insurances that could be very attractive to older workers </li></ul></ul></ul><ul><li>I </li></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  47. 47. Myths of Older Workforce <ul><li>Myth 3 . Retirement plan costs can be expensive </li></ul><ul><li>Realty : </li></ul><ul><ul><li>Traditionally designed benefit plans increase as workers age, BUT </li></ul></ul><ul><ul><li>DB pension is disappearing. </li></ul></ul><ul><ul><li>DC plans such as 401(k) before less costly </li></ul></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  48. 48. Myths of Older Workforce <ul><li>When you look at the big picture, older workers: </li></ul><ul><ul><li>Are equally or more productive than younger employees </li></ul></ul><ul><ul><li>Cost about the same </li></ul></ul><ul><ul><li>Have fewer absences </li></ul></ul><ul><ul><li>Have superior communication and customer relations skills </li></ul></ul><ul><ul><li>Are less likely to leave the job after a short time </li></ul></ul><ul><ul><li>Require lower training costs </li></ul></ul><ul><ul><li>The bottom line : Older workers are both profitable and productive.  </li></ul></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  49. 49. If your organization does not want to or need to address baby boomer issues, at least consider this: 09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  50. 50. If your organization does not want to or need to address baby boomer issues, at least consider this: <ul><ul><li>Three demographic factors are converging: </li></ul></ul><ul><ul><li>The population as a whole is aging, </li></ul></ul><ul><ul><li>Labor shortages are projected in a number of economic sectors, and </li></ul></ul><ul><ul><li>Many workers intend to continue working beyond traditional retirement age. </li></ul></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  51. 51. <ul><li>If your organization does want to or need to address baby boomer issues, at least consider this: </li></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  52. 52. Programs and Plans for Baby Boomers at Work <ul><li>Phased retirement </li></ul><ul><li>Knowledge transfer programs </li></ul><ul><li>Intergenerational communication programs </li></ul><ul><li>Training designed specifically for older workers </li></ul><ul><li>Active alumni groups- ambassadors </li></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  53. 53. Programs and Plans for Baby Boomers at Work <ul><li>Self scheduling shifts </li></ul><ul><li>Flexible time </li></ul><ul><li>Compressed workweek </li></ul><ul><li>Job sharing </li></ul><ul><li>Extended time off </li></ul><ul><li>Consulting assignments </li></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  54. 54. Programs and Plans for Baby Boomers at Work <ul><li>And, most importantly: </li></ul><ul><ul><li>Wellness and fitness programs, not just for older workers, but for everyone </li></ul></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  55. 55. The Opportunities for Human Resources <ul><ul><li>Filling the Talent Pool with seasoned older workers </li></ul></ul><ul><ul><li>Non-retirement as a career choice </li></ul></ul><ul><ul><li>Talent and know-how that might walk out the door can be harnessed </li></ul></ul><ul><ul><li>And… </li></ul></ul><ul><ul><li>If I were your competition… </li></ul></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  56. 56. Response to Retirement Needs to Change <ul><li>Assess what you have to work with </li></ul><ul><li>Decide where your organization is headed </li></ul><ul><li>Be open and creative </li></ul><ul><li>And be Daring …or at least try something new </li></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.
  57. 57. <ul><li>Thank you! </li></ul>09/11/09 The Upcoming Retirment Wave, Copyright 2009, Dickson R. Dawson, PhD.

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