Does society need to rethink the traditional notion of retirement, and if so, what strategies can managers implement in an effort to manage effectively their older employees? Lastly, can employing older workers provide a competitive advantage?
Yes, society will have to rethink traditional retirement. Long gone are the days of workers spending 30 to 40 years working and retiring and living off their pension or social security. There are very few companies that still offer a pension to its workforce. Also, social security was intended to provide a foundation to retirees that would be supplemented by other retirement funds or a social net to help the working poor at the time of their retirement. In 2012, the maximum monthly benefit at full retirement age of 66 was $2,513. The average monthly benefit for retired workers in 2011 was $1,241. Again, social security was providing a good foundation or base. To make matters worse, the Center of Retirement Research at Boston College found that only 42 percent of workers between the age of 25 and 64 participate in any type of company sponsored retirement plan. Another example is that the median 401K and IRA balances with households lead by a person between 55 and 64 was $120,000, which would only generate $400 ...
The traditional notion of retirement in society are examined. The effort to manage effectively their older employees are given.