28 June 2006

corporations look to retain boomers

I’ve read a lot lately about how there are not enough qualified younger employees ready to replace retiring baby boomer employees. The result is corporations taking steps to retain their valued employees. Since many boomers are planning a “working retirement” the benefits could be great.

CNN Money’s Corporations woo baby boomers states “Corporate America is finally waking up to the extensive experience mature employees bring to the table and placing value on the benefits of retaining older workers.”

“More companies are looking to keep older workers by investing in training programs and flexible work schedules, and offering to hire retiring employees on a consultant basis.

“While older employees do tend to be higher paid and can incur higher health care costs, employers are realizing that there is a trade-off in losing that knowledge from the organization,” said Emmett Seaborn, a principle at Towers Perrin, an executive consulting firm.”

MSN Money in it’s article Should you work during retirement? states:
“In 1997, AARP started asking people at what age they planned to retire, and the response was mid- to late 60s. In the latest survey, almost half the respondents said they plan to work into their 70s or beyond. Although the need for money is a driving force, some people would continue to work even if they didn’t need the money, Love says.

Baby boomers — in their 50s now — will have a harder time letting go of their jobs for the leisure of retirement because their identities are tied to what they do professionally, Love says. “Their jobs mean a lot to them.” And they’ll be physically able to work longer thanks to advances in medicine and healthier lifestyles that are extending life expectancies.”

In the same article they point out the pros and cons of working in your retirement years. The pros? More money, health insurance, and possibly even increased Social Security benefits. The cons? Pension problems, IRA required minimum distributions, and more of your Social Security benefits subject to income taxes.