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Benefits in the News > By Subject >

Actuarial - aging workforce


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Longevity and Liabilities: Bridging the Gap
16 pages. "[G]iven ongoing improvements in life expectancy, plan sponsors will increasingly have to focus on the risk posed by unexpected longevity improvements to the funded status of pensions, especially as a persistently low rate environment only exacerbates the present financial impact of longevity risk. Even sponsors with completely frozen, fully funded plans will be confronted with future liability growth due to longevity improvements. Understanding and quantifying the magnitude of longevity risk can help plan sponsors establish a framework for taking the appropriate actions today to ensure the ongoing health of their pension plans." (PGIM)
Labor Force Transitions at Older Ages: Burnout, Recovery, and Reverse Retirement (PDF)
44 pages. "In this paper [the authors] study the effects of wage and health transition processes as well as the role of accrued work-related strain on the labor force participation on older males. We find that a model incorporating a work burnout-recovery process can account for such reverse retirement behavior that cannot be generated by health and wealth shocks alone, suggesting re-entry patterns result in large part from planned behavior.... [R]espondents are more likely to report high levels of job stress as they continue to work when they would have otherwise stopped working, recovered, and re-entered." (Lindsay Jacobs, Federal Reserve Board, and Suphanit Piyapromdee, University College London)
How Many Poor Elderly Americans Will There Be in 2050?
"Based on current rates of population growth and assuming no improvements in what is promised in Social Security benefits, there's likely to be an increase in the numbers of elderly poverty from 8.9 million in 2010 to 25 million in 2050 -- an increase of 180 percent. Most of this predicted 180-percent increase between 2010 and 2050 -- about two-thirds of it -- can be attributed simply to the increase in the elderly population as Boomers get older.... The remaining third of this increase -- the part that's not just a matter of having more elderly people -- is America's weak retirement system." (Teresa Ghilarducci, in The Atlantic)
Honda Motor Co. Raises Retirement Age to 65 for Japanese Workers
"Other proposed changes ... include a shift to child care and nursing allowances, rather than family allowances ... Honda also plans to introduce a work-from-home and partial-workday system, and adopt a salary and bonus structure that widens the pay gap between higher and lower performers. The moves could position Honda as one of the Japan's most aggressive companies seeking programs and policies to help deal with a population that is aging at the fastest pace in the developed world." (Pensions & Investments)
Giving in Retirement: America's Longevity Bonus (PDF)
26 pages. "Over the next two decades there will be a surge in giving by retirees: America's $8 trillion 'Longevity Bonus.' Three forces are converging to create this new phenomenon: [1] The movement of the massive boomer generation into their retirement years; [2] Increasing longevity, which means more people may spend more years in retirement; and [3] High rates of giving among retired men and women (especially women) -- of both money and time.... [This study] is an in-depth exploration of the priorities, rewards, and challenges of giving in retirement." (Merrill Lynch Global Wealth Management)
Retiree Lifetime Income Initiative: Living Longer Without Income for Life
Report issued in five components: [1] Choices & Considerations -- general retirement planning considerations. [2] Product Comparisons -- high-level perspective on a few key risks and aspects related to lifetime income. [3] Legislative and Regulatory Issues -- approaches that emphasize financial literacy and education for prospective retirees, refocus plan design on lifetime income needs, and refocus federal retirement policies to support lifetime income needs. [4] Actuarial Considerations for Financial Advisers; and [5] Information for Current and Future Retirees -- how a retiree can use the concept of 'risk sharing' to help manage longevity risk through lifetime payout options and individual annuities, as well as other approaches to lessen risk." (Pension Practice Council of the American Academy of Actuaries)
Goldman Says Older U.S. Workers Poised for a Comeback
"Americans are living longer, are less likely to have pension plans, and are in better health further into old age -- yet a long-running uptrend in 55-64 year old labor force participation rates has stalled in the U.S. since 2008, even as it's persisted in most other advanced industrial nations.... What's going on with older workers matters to the broader labor market. As the population ages it's depressing how many people work or are looking for a job." (Bloomberg)
Pension Finance Watch, July 2015
"A drop in long bond yields dominated results in July, though the impact was partially offset by positive equity returns. The Towers Watson Pension Index declined 1.2% for the month, to 75.5. Even with the July decrease the index remains up about 5% for the year." (Towers Watson)
[Official Guidance] Text of PBGC Submission to OMB and Comment Request: Reportable Events -- Notice of Failure to Make Required Contributions
"PBGC intends to revise the current forms and instructions to: [1] Require that additional supporting and identifying information be provided ... [2] Require more description of the pertinent facts relating to an event ... and on information being included or missing with filing. [3] Add an information requirement included in the regulation to Forms 10 and 10-A (for change in contributing sponsor or controlled group event). [4] Provide enhanced instructions on the type of actuarial information required to be submitted.... [5] Remove information requirements that PBGC no longer needs or can gather from public sources. [6] Require additional information for certain events ... [and] [7] Require a signature and certification on Form 10 and Form 10-A as to the completeness and accuracy of the contents of the filing." (Pension Benefit Guaranty Corporation [PBGC])
Lifetime Job Demands, Work Capacity at Older Ages, and Social Security Benefit Claiming Decisions
"[The authors] consistently found that both non-routine cognitive analytic and non-routine physical demands were associated with worse health, earlier labor force exit, and increased use of Social Security Disability Insurance. The growing share of workers in jobs with high levels of cognitive demand may contribute to growth in DI use." (Center for Retirement Research at Boston College)
Old Pensions Continue to Top New Headlines with Purchase of Group Annuity Contracts
"From the insurer's perspective, this type of liability and asset management is right up their alley. For one, the group annuity liability is a natural hedge to an insurer's life insurance business (one business does better when people are living longer and vice versa). Additionally, managing fixed income assets to make annuity payments that are due well into the future is the primary business of insurance companies. Thus, from an efficiency standpoint they may be better suited to manage these types of assets and liabilities than, say, a company whose primary business is to make widgets or consult on gizmos." (Vanguard)
Pension Finance Update, as of April 30, 2014 (PDF)
"April was another down month for pension sponsors, marked by declining interest rates and sluggish stock markets. Both 'model' plans ... lost ground last month, with our traditional 'Plan A' losing about 2% and the more conservative 'Plan B' dropping less than 1% during April. For the year, sponsors have now given back roughly one-fourth of 2013s 'bounty' -- Plan A is now down 5% during 2014, and Plan B is down more than 2%. [Plan A is a traditional plan (duration 12 at 5.5%) with a 60/40 asset allocation, while Plan B is a cash balance plan (duration 9 at 5.5%) with a 20/80 allocation with a greater emphasis on corporate and long-duration bonds.]" (October Three Consulting)
What Pension Plan Sponsors Should Know About Delegated Investment Services
"[P]lan sponsors look to [outsourced chief investment officer (OCIO)] providers to manage portfolios holistically while providing support to help the organization address accounting and regulatory issues, and manage investment-related administrative activities. This allows committees to develop plans that fluidly shift with changes in the organization's liabilities and assets without overtaxing resources. By pairing their understanding of their unique goals with the expertise of OCIO providers, plan sponsors have been able to implement programs that put them on pace to adequately fund their pension plans while improving cash flow, minimizing tail risks and even exiting from these plans." (Towers Watson)
Substantial Health and Economic Returns from Delayed Aging May Warrant a New Focus for Medical Research
"The economic value of delayed aging is estimated to be $7.1 trillion over fifty years. In contrast, addressing heart disease and cancer separately would yield diminishing improvements in health and longevity by 2060 -- mainly due to competing risks. Delayed aging would greatly increase entitlement outlays, especially for Social Security. However, these changes could be offset by increasing the Medicare eligibility age and the normal retirement age for Social Security." (Health Affairs)
The Challenges of an Aging Workforce
"With [more baby boomers] opting to stay in the workforce, organizations will be able to continue reaping the benefits of their skills and institutional knowledge. An aging workforce brings far more than experience, however. Along with it comes a new slate of challenges and prejudices that must be addressed if employers hope to realize the full benefit of an increasingly mature workforce. From managing brief, yet damaging indignities, dubbed microaggressions, to accommodating physical limitations to offering flexible work schedules and retraining initiatives, employers are taking steps to ensure their aging population is able to remain on the job." (Human Resource Executive Online)
Expected Retirement Age Continues to Rise (PDF)
"Twenty-five percent of workers ... say the age at which they expect to retire has changed in the past year, and of those, the vast majority (88 percent) report that their expected retirement age has increased. This means that in 2013, 22 percent of all workers planned to postpone their retirement. In 1991, just 11 percent of workers expected to retire after age 65, but now 36 percent of workers report they expect to wait until after age 65 to retire -- and 7 percent don't plan to retire at all[.]" (Employee Benefit Research Institute [EBRI])
Defined Benefit Plans Outperform Defined Contribution Plans Again
"From 1995 to 2011, DB plans outperformed DC plans by an annual average of 76 basis points. DB plans outperformed DC plans in 13 of the 17 years analyzed. But in 2011, the performance gap between DB and DC plans narrowed by nearly 50%, primarily due to strong DC investment results in 2009. What are the implications for finance executives tasked with making efficient use of their benefit budgets?" (Towers Watson)
Just Over Half (56%) of Americans Say They're Financially Prepared to Live to the Age of 75
"[I]t's clear the number of Americans expecting to retire young is very small, while the number expecting to work into their 70s and 80s is considerable. Specifically: 6% expect to retire before the age of 60; 52% expect to retire in their 60s; 32% expect to retire in their 70s; 10% expect to retire in their 80s." (Northwestern Mutual)
Barriers to Later Retirement: Increases in the Full Retirement Age, Age Discrimination, and the Physical Challenges of Work
"[This study finds that] stronger state age discrimination protections increase employment and hiring for older workers caught by increases in the FRA [and] that physical challenges pose a barrier to extending work lives, although some workers with physically-demanding jobs are able to mitigate these demands -- either at new jobs or with the same employer. However, for the most part stronger age discrimination protections do not appear to contribute to older workers' ability to mitigate physical challenges at work." (University of Michigan Retirement Research Center)
The Changing Causes and Consequences of Not Working Before Age 62 (PDF)
"This study considers nonworking older adults and their channels of support before qualifying for Social Security benefits. Using 18 years of data from the Health and Retirement Study, [the authors] ... explore the effects of various factors on the likelihood of being a nonearner and observe the consequences of not working during one's 50s with regard to poverty, age of Social Security claiming, and overall retirement satisfaction. Finally, [they] analyze how these relationships have changed over time, particularly after the Great Recession." (Urban Institute)
Aspirin Seen Costing Pensions $100 Billion As Lifespans Increase
"The pension costs for men in the U.K. could rise by 0.7% within 20 years if more people begin taking aspirin daily, according to a statement by Risk Management Solutions Inc. this week. An increase of that magnitude across the more than $13 trillion in pension liabilities in North America and Europe would be about the same as everyone giving up smoking within a generation, the modeling firm says.... Daily doses of aspirin reduce the chances of developing or dying from cancer earlier than previously thought and also prevent tumors from spreading, studies published in the Lancet medical journal last year showed." (Employee Benefit News)
Recruitment and Retention of Older Workers: Considerations for Employers
"This brief presents the motivational factors that drove companies to focus on older workers, the cultural contexts of businesses that have undertaken these practices, and the range of recruitment and retention practices and initiatives they used. Researchers offer suggestions to employers on the relevance of the findings to their own workplace practices, initiatives, and cultures." (National Center on Workforce Development/Adult)
Recruitment and Retention of Older Workers: Application to People with Disabilities
"This brief identifies strategies that can benefit both older workers and workers with disabilities. It describes each strategy that companies discussed in relation to older workers and makes a case for its effectiveness in employing workers with disabilities, offering action steps employers can take. The brief ends with recommendations for the disability community to better support businesses to employ people with disabilities. Including these practices in business operations will position employers to become more reflective of their diverse communities and the customers they strive to serve." (National Center on Workforce Development/Adult)
In 2012, for Every Person Aged 65 or Older, There Were Four People of Working Age in the EU27
"The old age dependency ratio in the EU27 increased from 21.1% in 1992 to 26.8% to 2012. During this period, the ratio rose in all Member States, except Ireland ... As a result, the total age dependency ratio in the EU27 grew slightly over the last two decades, from 49.5% in 1992 to 50.2% in 2012, meaning there are around two persons of working age for each dependent person. In the Member States, the total age dependency ratio in 2012 ranged from 39% in Slovakia to 56% in France and 55% in Sweden." (Eurostat via Perspective PensionSurveys)
[Opinion] Our Coming Deficits Are Driven by Old People, Not Health Inflation
"You've heard ... that our long-term deficits are almost entirely driven by health-care costs. That's true over the next 50, 60, 70 years, which is, absurdly, the time frame people often talk in. But over the next 20 years, it's not quite right. A more accurate way to put it would be that in the coming decades, new spending is almost entirely driven by health-care programs. But what's really driving the spending in those programs is the aging of the population, not the rise in health-care costs." (The Washington Post)
Employers Slowly Enrich Programs for Older Workers
"To employers, ... older workers increasingly represent serious bottom-line expense and profitability issues. These financial issues may translate seniors' lifestyle aspirations into some impersonal statistics. But in terms of changing workplace programs and perceptions, dollars and cents may also drive change more quickly and effectively than any set of 'feel good' motivations." (U.S.News and World Report)
Most Investment Clients Don't Want 'Vacation Retirements'
"Financial advisors should help clients plan to continue working after age 65 rather than for a 'vacation retirement,' says industry coach Mitch Anthony.... 'Retirement is an artificial finish line,' Anthony stressed. 'Somebody decided that at this age, you're done. Is there anyone ... who would like to tell yourself when you're done rather than have someone else tell you?'" (Financial Advisor)
Employment Duration and Shifts into Retirement in the European Union
"[S]hifts into retirement have increased during the onset of the 2009 economic and financial crisis. Income, together with flexible working arrangements, is found to be important as regards early retirement decisions, compared to retiring beyond the legal retirement age." (European Central Bank, via SSRN)
Aging and Pension Reform: Extending the Retirement Age and Human Capital Formation
"Projected demographic changes in industrialized and developing countries vary in extent and timing but will reduce the share of the population in working age everywhere.... [O]penness has a relatively mild effect. In contrast, endogenous human capital formation in combination with an increase in the retirement age has strong effects. Under these adjustments maximum welfare losses of demographic change for households alive in 2010 are reduced by about 3 percentage points." (National Bureau of Economic Research; purchase required for full document)
Many Aging Boomers Balk at Retirement
"In huge numbers, members of the baby boom generation -- born from 1946 through 1964 -- tell researchers that they don't plan to retire.... On the one hand, baby boomers like to work ... But it's also true that, with the death of traditional company pensions and more recently the biggest economic downturn since the Great Depression, the baby boom generation in many ways has no choice but to redefine what retirement means." (Sacramento Bee)
Many Executives Re-Examine Their Retirement Intentions
"Some executives dreaming of their golden years are unsure when those years will actually start. Nearly four in 10 (38 percent) chief financial officers (CFOs) interviewed for a Robert Half Management Resources survey said they are more uncertain about when they're going to retire than they were five years ago. Another 13 percent stated their expected retirement plans have changed compared to five years ago." (Robert Half Management Resources)
2013 Sun Life Canadian Unretirement Index Report (PDF)
"In 2008, half of [survey] respondents said they expected to be retired at 66.... Statistics Canada data show that the average retirement age fell from 65 to 61 during the two decades that followed 1976. It ticked up after then, but remained in the low 60s. This year, a little more than a quarter of Canadians say they expect to be retired at 66. The average response to [the] question about when you expect to retire came in at 66.8.... Phased retirement has become a popular strategy." (Sun Life Financial)
Retirement Readiness: A Reality Check
"The world's population is ageing. By 2050, the United Nations predicts about one in five people will be retired.... [R]esearch shows that people expect retirement to last for an average of 18 years. Yet, on average, people expect their savings to last for just ten years, leaving an eight-year difference.... [T]he second half of retirement is often when health and care costs rise." (HSBC)
More and More, It's an Older Women's World
"[W]omen -- only 20 percent of the aged 55-plus labor force in 1948 -- were 39 percent in 1980 and 47 percent last year. So when we think about the older workforce, who those workers are, what they are doing, and the barriers they may face in finding and keeping a job, we need to keep in mind that nearly one in two of those workers now is a woman." (The Huffington Post)
Five Ways Older Workers Benefit a Business
"Lots of people think a mature employee will bring higher benefits costs. This is simply not true. In most cases, mature employees have few or no dependents to cover on their insurance. With Medicare eligibility beginning at age 65, these employees may even have their own insurance and choose not to participate in the company's benefits plan. Depending on your company's policies, an older worker may not even require benefits coverage; in my experience, many mature employees prefer to work on a project basis or part time instead of full time." (Inc.)
Why Age 70 Isn't the New 65
"For one-third of households in which the people were between ages 30 and 59 as of 2007, working until age 70 won't provide adequate income in retirement.... [But] working longer does help. While only about half of households age 50-59 in 2007 could retire at 65, the number increases to nearly two-thirds if retirement age is increased to 70. Those extra five years have a dual effect. Not only do workers save more, they also delay dipping into their retirement funds, allowing those funds to continue growing." (CBS MoneyWatch)
Measures of Retirement Benefit Adequacy: Which, Why, for Whom, and How Much? (PDF)
"Key findings include: [1] Many of the next generation of retirees are facing a big drop in their standard of living when they retire.... [2] [T]here is a 29% chance median households will have positive wealth at death.... [3] Individuals need to be aware that attempts to over-simplify the retirement planning process can be very dangerous if used for personal decision making. [4] The most appropriate measure of retirement benefit adequacy depends on the stakeholder: plan sponsor/employer; financial planner/individual; public policymaker; or financial institution. [5] While it is much easier to plan for expected events, so-called 'shock events' must be taken into consideration since they are more likely to derail an individual's retirement plan, especially at lower income levels. For the median income individual, shocks are the biggest driver of asset depletion." (Society of Actuaries)
How Will Older People's Participation in the Labor Force Be Affected by the Coming Increase in the Full Retirement Age for Social Security?
"CBO expects that the share of older people who work will increase in the latter part of this decade in response to the scheduled increase in the full retirement age (FRA) for Social Security. As a result, economic output will be slightly greater and budget deficits slightly smaller than would otherwise be the case.... CBO expects that the effect of increasing the FRA from age 66 to age 67 will be similar to the effect of increasing it from age 65 to age 66." (Congressional Budget Office)
[Opinion] Prevent Debt in Future by Making Changes to Social Security Now
"As more boomers retire, Social Security will add increasingly to debt. By about 2033, the credits will be exhausted and benefits will have to be cut sharply. Because workers retiring in 2033 are already working and should plan for their retirement, we owe it to them to phase the necessary changes in gradually and avoid the sharp drop." (Brookings)
British Homes Propping Up Pensions
"A survey of 1,000 adults in 12 European countries found that more than a third of Britons planned to use their property to fund their retirement, compared with fewer than a quarter on the continent. French people have increased their estimated retirement age from 60 to 62, while workers in Turkey still believe they can stop work at 55. One in 10 pensioners in Britain has already sold their house or downsized." (The Guernsey Press)
[Opinion] Pension Underfunding Is Part of Much Larger Problem: Too Few Young Workers
"The consequences of declining birthrates, occurring faster than anyone thought possible, go beyond requiring new formulas whereby current workers deliver sufficient productivity to adequately support a larger proportion of retirees. It means that the 'population bomb' that was supposedly going to explode has fizzled. It means that the prevailing challenge of the 21st century is not how to avoid a Malthusian collapse of resources, but rather is how to continue to generate robust global economic growth in a world where the human population is declining. The magnitude of this challenge cannot be understated. It has never been done." (California Public Policy Center)
Tax Elasticity of Labor Earnings for Older Individuals
"This paper studies the impact of income and payroll taxes on intensive and extensive labor supply decisions for workers ages 55-74 ... [The] estimates suggest that an age-targeted tax reform that eliminates payroll taxes for older workers would decrease the percentage of workers dropping out of the labor force by 1 percentage point, a 4% decrease." (Case Western Reserve University Research Paper Series in Legal Studies)
U.S. Census Bureau Projections Show a Slower Growing, Older, More Diverse Nation a Half Century from Now
"According to the projections, the population age 65 and older is expected to more than double between 2012 and 2060, from 43.1 million to 92.0 million. The older population would represent just over one in five U.S. residents by the end of the period, up from one in seven today. The increase in the number of the 'oldest old' would be even more dramatic -- those 85 and older are projected to more than triple from 5.9 million to 18.2 million, reaching 4.3 percent of the total population." (U.S. Census Bureau)
Lifetime Income, Longevity and Social Security Progressivity
"Between 1970 and 2009, life expectancy for men at the age of 65 rose about 32 percent in counties around the 10th percentile, or low end, of lifetime income distribution. In contrast, life expectancy for men at the age of 65 rose about 43 percent in counties around the 90th percentile, or high end, of lifetime income distribution. Thus, by 2009, men in high income counties lived 1.1 years longer on average than the men in low income counties." (National Center for Policy Analysis)
Retirement Anxiety Rising Among Older Workers
"Fifty-nine percent of workers aged 50 and up said they may delay their retirement, a jump from 55% a year ago ... Among workers of all ages, the portion who expect to delay retirement rose to 44%, the highest figure in the survey since 2002 -- but the jump was driven entirely by the older workers. Of the younger workers, 37% said they expect to delay retirement, the same portion as said that a year earlier." (MarketWatch.com)
The Relationship Between Pension Funding and Size of the Working Population
"Canada is projected to have a 4% decline in working age population as a percent of its total population over the next eight years Japan and Russia are also projected to have a 4% decline. Hong Kong will have a decline of 6% Countries in which the working age population will increase include Pakistan (3%) and 2% in Brazil, India, Indonesia, and Mexico China, the United Kingdom and the United States are expected to see a 2% decline in the working age group as a percentage of total population." (Mercer)
Mercer Workplace Survey, 2012
"Facing an unconvincing economic recovery, workers are nonetheless extending their new commitment to retirement savings both inside and outside their workplace retirement plans. 401(k) and other retirement savings are on the way up again. Feeling vulnerable and out of time, older workers especially are funding their 401(k)s more generously.... Participants are also finding the overall benefits landscape more difficult to navigate this year than last with perceived complexity up and quality of information down, a striking reversal of historic experience. At the same time, this insured population of workers is ever more skeptical of national health care reform and what it will mean to them and their personal circumstances." (Mercer)
Financial Literacy and Retirement Planning in Australia
"[A]ggregate levels of financial literacy [in Australia are] similar to comparable countries with the young, least educated, unemployed and those not in the labor force most at risk. However, unlike the international norm, we find that financial skills increase with age. The role played by the Australia's mandatory private retirement arrangements, system of defaults, and interactions with the means-tested safety net pension at older ages remain open questions." (Pension Research Council, Wharton School of the University of Pennsylvania; free registration required)
CBO's Long-Term Projections for Medicare and Medicaid Spending in the United States
"If current laws remained in place, spending on the major federal health care programs would grow from more than 5 percent of GDP today to almost 10 percent in 2037 and would continue to increase thereafter. The aging of the population and the rising cost of health care would cause spending on the major health care programs and Social Security to grow from more than 10 percent of GDP today to almost 16 percent of GDP 25 years from now. By comparison, spending on all of the federal government's programs and activities ... has averaged 18.5 percent of GDP over the past 40 years." [Editor's note: The linked item is a set of 15 slides at a presentation to the "OECD Expert Workshop on Improving Health Expenditure Forecasting Methods."] (Congressional Budget Office)
Toyota Makes Early Retirement Offers to 2,000 Workers
"'As we look at the next two years, a large contingent of those team members in the U.S., particularly in Kentucky, will be thinking about exiting the company due to 25 years of service,' the company said in a statement to employees on Nov. 29. 'This program offers a strategic approach to managing for this condition.'" (Bloomberg)
Many National Pension Systems Will Be Stressed As Working Age Populations Shrink by 2020
"The economically vital 15-64 age group is set to drop by as much as 6% as a percentage of total population in some nations in the next eight years, highlighting the pressure on unfunded national pension systems ... Hong Kong faces the biggest decline in this age group from 76% of total population today to 70% in 2020. Canada, Japan and Russia are major economies in which the working age population as a percent of total population is expected to decline by 4%. China, the United Kingdom and the United States are expected to see a 2% decline." (Mercer)
Changing Sources of Income Among the Aged Population
"[T]he large shift over the past two decades in the composition of the income of the aged (65+), increasing the role of earned income and reducing the importance of income from their own assets ... can be attributed to delayed exit from the labor force by workers at older ages. [The authors] attribute the increase in work time to a rise in the proportion of more educated workers who choose to continue working, changes within the pension system that previously encouraged early retirement, and a decline in the availability of retiree health insurance. The increase in work time is concentrated among the highest income groups and those with the most education, suggesting that it is largely voluntary." (Center for Retirement Research at Boston College)
Delayed Retirement Means an Aging Work Force
"Although tenure is often thought of as positive, it has the potential for conflict. Some of the adverse effects of employees working longer than they or the organization had anticipated include: Depleting the next generation of workers, who may look elsewhere for opportunities if they see their prospects for advancement being put on hold. A drop in productivity if some employees continue working merely because they cannot afford to retire. A cost increase in benefit programs in tandem with health and disability plan usage, which can be expected from an aging work force." (PLANADVISER.com)
Examining Barriers to Later Retirement: Increases in the Full Retirement Age, Age Discrimination, and Physical Challenges
"[This study addresses] three questions. First, how do age discrimination protections affect the labor market transitions of workers directly affected by increases in the [full retirement age]? Second, how do physical challenges at work influence the employment transitions of older workers for whom public policy is trying to delay retirement? And third, do age discrimination protections influence the ability of older workers facing physical challenges at work to remain employed?" (University of Michigan Retirement Research Center)
Middle Class Americans Teeter on Edge of Retirement Cliff -- More than a Third Could Live At or Near Poverty in Retirement
"Over half of pre-retired Americans (53%) say they are not confident they will have saved enough for the life they want in retirement, up from 42% percent in 2011. One third (30%) of Americans say they will need to 'work until at least 80,' in order to live comfortably in their retirement years, up from 25% a year ago. Yet, 73% of Americans said their employer would not want them to work in their 80s. Similar to 2011, 70% of middle class Americans say they'll work in retirement, with 39% saying they'll work out of financial necessity." (Wells Fargo)
U.K. Pension Schemes See Increasing Longevity As Biggest Risk To Funding Levels
"When respondents were asked to rank a series of risks according to their impact on the pension scheme, longevity ranked as the biggest, while falling equity markets and rising inflation ranked second and third respectively." (SEI)
More People in Their 30s and 40s Worrying about Financing Retirement
"[C]oncerns about retirement financing are now more heavily concentrated among younger and middle-aged adults than among those closer to retirement age -- a major shift in the pattern that had prevailed at the end of the recession. In 2009 it was 'Gloomy Boomers' in their mid-50s who were the most worried that they would outlive their retirement nest eggs. Today, retirement worries peak among adults in their late 30s -- many of whom are the older sons and daughters of the Baby Boom generation." (Pew Research Center)
In Most Countries, People Working Longer Before Retiring
"The length of work lives has risen in most developed countries over the last decade, as some countries pushed up minimum retirement ages. But in some countries, including the United States, the proportion of people in their early 60s with jobs has declined, reflecting the poor economy since the financial crisis." (The New York Times; free registration required)
The Best Laid (Retirement) Plans
"In 1991 only 11% of American workers expected to retire after age 65. Today, that number is over 37%, with 26% saying they expect to retire sometime after age 70. An additional 7% say they will never retire. While the benefits of continued work on one's personal financial situation are well documented, the ... ability to actually keep, find or engage in paid employment as they approach or surpass traditional retirement age is questionable." (Financial Planning)
Will Delayed Retirement by the Baby Boomers Lead to Higher Unemployment Among Younger Workers?
"The estimates show no evidence that increasing the employment of older persons reduces the job opportunities or wage rates of younger persons. Indeed, the evidence suggests that greater employment of older persons leads to better outcomes for the young in the form of reduced unemployment, increased employment, and a higher wage." (Center for Retirement Research at Boston College)

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