THE GREYING OF THE U.S. WORKFORCE
In a tight labor market, it can be difficult to find qualified talent. An older workforce can bring a lot to any company: experience, mentoring and knowledge. To attract and retain the key baby boomer demographic—currently 55 to 75 years old—it helps to understand their needs and values.
TEST YOUR KNOWLEDGE
What is the current average
retirement age?
60
60
61
61
65
65
67
67
The average reported retirement age for Americans is currently
61 YEARS OLD
Source: Gallup
75-year-olds and older in the workforce will have the highest growth
4.5% by 2024
Source: Bureau of Labor Statistics
Percentage of workers aged 55+ employed or looking for work
<33%
20 YEARS AGO
40%
TODAY
Source: St. Louis Federal Reserve
Why are boomers working longer?
They feel they do not have enough savings to retire at 65.
Boomers are more educated than previous generations, and more educated workers tend to stay in the workforce longer (because they usually enjoy their jobs).
Source: CNBC
Which industries have the largest share of workers 55 and older?
13.9%
Health care
11.2%
Manufacturing
10.4%
Education
9.6%
Retail
7.7%
Scientific and technical
Health care
Manufacturing
Education
Retail
Scientific and technical
Source: U.S. Senate Special Committee on Aging
How old is too old to work?
Employers said
?
Workers said
?
Source: Transamerica Center for Retirement Studies
Some companies could benefit more from the availability of older workers.
Older workers are more likely to work at companies with
Fewer than 10 employees
Older workers are less likely to work in the
Private sector
Source: Special Committee on Aging, United States Senate
INCENTIVES TO ATTRACT AND RETAIN
TEST YOUR KNOWLEDGE
Which incentive do boomers value most?
Health care benefits
Mentoring programs
Recognition programs
Working from home
Retirement programs
Volunteer programs
Boomers value incentives differently than millenials.
Boomers
Millenials
Working
from home
from home
Mentoring
programs
programs
Health care
benefits
benefits
Volunteer
programs
programs
Recognition
programs
programs
Retirement
programs
programs
Source: RSM analysis, Flexjobs.com
Few employers have programs and plans in place to accommodate older workers.
Information about encore career opportunities
Seminars and education about transitioning into retirement
Retirement-oriented lifestyle and transition planning resources
Participation in succession planning, training and mentoring
Financial counseling about retirement
10%
11%
12%
14%
16%
Source: Transamerica Center for Retirement Studies
Information about encore career opportunities
Seminars and education about transitioning into retirement
Retirement-oriented lifestyle and transition planning resources
Participation in succession planning, training and mentoring
Financial counseling about retirement
One caveat to consider: The average insurance premiums for covered workers in firms with a relatively large share of older workers are higher than the average premiums for covered workers in firms with a smaller share of older workers.
Source: Kaiser Family Foundation