One-size-fits-all retirement programs may no longer be appropriate as the workforce becomes more generationally diverse
There was a time in the not too distant past when the definition of the US workforce was clearer and the transition from school, to work, to leisure was more defined.
Now, the traditional definition of retirement and the workforce is changing: people are living longer, working longer, and taking second careers.
For the first time in US history, four generations co-exist in the workforce and they each have different skills, needs and expectations with their retirement needs being vastly different.
- In 1992, workers aged 55 and older occupied 11.8% of the US workforce
- In 2012 they accounted for 20.9%
- By 2022, workers over 55 are expected to rise to 25.6%¹.
The average retirement age is now 66. Many retire, then chose to return to work for financial concerns, insurance coverage, or sometimes boredom. Some return to the workforce for a few years to build up savings to make retirement more comfortable.
Millennials are faced with a set of obstacles unique to them. In a time where pensions are pretty much extinct and social security is not as predictable as it once was, it is projected this generation more than any other needs to be working on funding their retirement now. Studies show that only about 17% of millennials feel they are on track for retirement.
CyQuest can help your small business with retirement plan design, advice, and guidance to help all of your employees: Millennials, the ‘retired’ generation and those in-between, do better financially.
https://cyquesthr.com/services/retirement-plan-administration/
¹http://www.bls.gov/opub/ted/2014/ted_20140124.htm